Knowing the right price to pay (Part 3)
Step #3 - Know the Right Price to Pay
If your dealer doesn't disclose his/her profit margin and buy/sell spreads, find another gold dealer immediately!
Wholesale market makers should have a 2% buy/sell spread on a minimum sale of 10oz gold bullion coins.
Example: if the current Spot Price of Gold is at $1,000 an ounce, we would buy gold bullion products for $1,035 an ounce (the extra $35 is for the cost of production of the coins) and sell those bullion investments for just $20 more (totaling $1,055 per ounce). Stuppler only makes 1% when we buy and 1% when we sell. Our goal is to maximize your investor profits and increase the value of your precious metals portfolio and investment packages!
Investment Gold Coins
Wholesale market makers selling premium quality gold coins such as the $20 Saints Gaudens Double Eagle and the French Rooster, require a 10% profit due to the fact that rare investment coins are no longer made, have a high investor demand, and must be prescreened to insure mint condition, premium quality coins.
Here are two examples based on a Gold Spot price of $1,250 ounce:
A fair buying price for an Uncirculated French 20 Franc Rooster (which has a gold content of just under 2/10th of an ounce of gold) is $268.38 with a selling price of $245.04. A minor 5% to 15% premium, based on the gold content of a coin and the current gold spot price.
The price of a graded $20 Gold Saint Gaudens Double Eagle coin can range from $1700 to $3,100 based on the certified grade. These coins have a gold content of one full ounce of gold and are in strong demand from both precious metal investors and coin collectors alike. Plus, they are classified as a “collectable” by the IRS and because of that classification, they have TAX BENEFITS! Call or e-mail me to discuss the special tax advantages of investing in gold and rare coins at 888-454-0444 or [email protected]
In our 50+ years as professional coin dealers, and having spent the past 20 years handling consumer protection issues for the American Numismatic Association (the largest coin organization in the United States) and California Coin and Bullion Merchant Association, We have learned a thing or two. One of the most crucial facts we have learned about buying silver is this… If a new investor or silver buyer knew the right questions to ask BEFORE making their initial silver purchase, approximately 90% of potential future problems would never materialize!
Please email or call us with any questions, or for more information on buying gold coins or building a precious metals investment portfolio. We look forward to speaking with you.