Newbie Question re Gold coins

Sorry if these questions have been asked a hundred times. I've read through some threads but still need some help.

With Gold currently around $1,050/oz how does that relate to the price of Gold coins? Is there a significant numismatic value for gold coins above the price of gold?

My father-in-law (87) recently purchased a number of 2006 American Buffalo $50 Gold Coins, 1 oz at $1,565 each. I'm concerned that he paid an excessive premium, 50% over spot gold price.

So how does the trading in Gold Coins work? I see multiple sources to purchase the same 2006 coin with variable prices. How do I find the "buy" price the he would be paid if he wanted to sell the coins?

Is there a list of reputable sources for gold coins, purchase and sell?

Thanks in advance for any help!!!

 

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There is usually a premium on gold coins. So it's usually about $100-$200. That's about all you need to know usually anything more is a bit of rip off in my opinion.

 

Depends on whether they were proofs or uncirculateds too as the premiums can be greatly different.

 

Of course, thanks for adding that

 

The coins are Proof.

 

Well if they are there will be a higher premium. Usually $200-$400.

 

One ounce proof gold Eagles of any date are going for $1600-$1700 or so right now, much more than a $200-$400 premium, not sure about the premiums on the buffalo proofs though, but if you just check eBay completed listings and you'll pretty much have your answers.

 

Ah Mr know it all huh?

Well that's ONE example but then look at the gold proof buffalo

$1125 on apmex and around $1400 from the mint.
Tu shea
Each example is unique.

 

Ok, I was curious too so I looked. The Buffalo gold have been going for $1250-$1350 per one ounce proof coin on eBay lately.

 

Yeah so they are different. Anyway back to the OP's concern, yes this is what you should expect when purchasing gold coins

 

Not all gold coins have premiums though. Krugerrands basically trade right at melt value. Many other gold coins trade for very slight premiums over spot.

 

Notice how I prefaced it though with usually.

But yes Mike, another added point. Krugerrands have no premium and they are probably the best bet to go if you just want 1 oz of .999 pure gold.

 

I just checked the Amex site and the 2006 Buffalo Gold proof is listed at $1,321. So at $1,565 it sounds like he over paid by about $240 per coin. OUCH!!

How do I find the price someone would pay to buy the proof, if he wanted to sell it? Are those prices somewhere on Amex or other sites?

 

Ebay.


And what's Amex?

 

Sorry, I guess I can't type tonight. It's APMEX.com

So the best place to sell is on Ebay?

 

Yes, Ebay or for Gold sell to Apmex. They are VERY fair on their gold and silver buy prices.

 

If you're looking to sell quick and w/o fees, I'd wait until you have 10 posts and post them for sale on the Open Forum here. Doesn't cost you anything to try and you'd cut out the middle man (eBay/PayPal) who will take a significant percentage of your sale price.

If you're not comfortable with that, eBay may work, but you'll get the best money if you have good feedback there already and can take decent photos. If that is an issue, I know you can sell to apmex too, just give them a call, they'll give you a quote and if that seems reasonable, you're done.

 

Mike's right.. Building your seller feedback and having great photos on ebay is HUGE to sell any high priced item and will only increase your chances.

 

I take it that after 10 posts you can sell on the Open forum?

 

Yes correct.