Gold has been a valuable item of trade for many thousands of years. It adorns the wealthiest people in the world and its value increases every year. The recent rise in gold prices means that anyone with some gold has a secure investment.
Buying gold for investment can seem fraught with problems on the internet. Which type of gold should a buyer invest in? How much should they buy? With the help of this handy guide buying Gold Bullion Coins on eBay will be a simple matter.
What is Gold Bullion?
Bullion is the traditional word used to describe storing gold or other precious metals in the form of bars or ingots. The term has extended to describe precious metals that can be traded, such as coins. Gold Bullion Coins are for the same use as gold bullion bars, but due to their size they are more portable and represent the spot price of gold more than gold bullion bars.
- Gold Bullion Coins have many advantages over gold bars:
- Gold coins offer a great flexibility when the buyer wishes to sell their gold, as a gold bar can’t be cut up, but gold coins are smaller so the buyer can sell a percentage of their coins rather than a large gold bar.
- Gold coins are a smaller investment, but the buyer can chose how many they wish to purchase.
- Coins are easier to store than heavy gold bars.
- Some gold coins will have collector’s value due to rarity and age.
- Gold has timeless value and is therefore good for passing down the family.
It is recommended that a buyer should have about 5-10% of their wealth in the form of gold bullion in order to protect against periods of economic downturn.
Bullion coins are minted by different countries and can come in different sizes from 1 oz. to ½ oz to ¼ oz. 1/10 oz. and 1/20oz. Gold Bullion Coins are not worth the face value of the coin i.e. $1, but are worth more due to their gold content and purity. Purity of the coin will vary from 850 (85% gold) to 999 (99.9% gold), this is known as fineness.
The following list is some of the most popular Gold Bullion Coins to be found on eBay.
- British Britannia
- Canadian Maple Leaf
- Chinese Panda
- Gold Dinar
- French Napoleon
- Austrian Philharmonic
- Australian Gold Nugget
The price of the gold bullion coin will depend on its country of origin, the year it was minted and how rare the actual coin is. For new buyers it is advisable to select a more recent coin that is more affordable rather than aiming to buy a more unusual coin.
Advantages to Buying Gold Bullion Coins on eBay
Anything can be bought on the internet and Gold Bullion Coins are no exception. eBay’s choice in Gold Bullion Coins is ever increasing as more gold sellers are putting their stock on eBay. Being able to bid for gold allows buyers the opportunity to buy gold at a fantastic price. These are some of the advantages to buying Gold Bullion Coins on eBay:
- Rare coins can be found on eBay.
- The buyer does not have to travel to buy gold, they may view it online from their home.
- There are many specialist sellers on eBay who sell small quantities of gold.
- The current price of gold is easy to check on the internet whilst browsing eBay.
- Buying investment grade gold bullion means the buyer pays no tax on the coins.
How to Buy Gold Bullion Coins on eBay
There are three main ways to search for Gold Bullion Coins on eBay:
- Keyword search
- Advanced search
Any three of the options above can be used separately or in combination to help the buyer find exactly what they are looking for. To begin looking at Gold Bullion Coins using categories, navigate to the home page www.ebay.co.uk and find the Coins portal and select the Bullions/Bars subcategory. From there the buyer can browse some of the suggested categories or refine the search more by selecting specific types of Gold Bullion Coins.
The buyer can select the next category of ‘Coins’ to find all bullion coin related listings. Next it is important to select which material the coin is made from, the buyer should then select ‘Gold’ to find the Gold Bullion Coins on eBay. The country of origin is an important element for some buyers to consider, if for example they wish only to buy only British Coins, the buyer can select the country of origin for the gold coin.
This method of searching is ideal for general browsing which allows a new buyer to find an interesting variety of coins to look. The previous options are ideal for general browsing but the keyword search is perfect for buyers who know exactly what they are looking for. If the buyer is for example searching for a Gold Sovereign, then they will have to go to the eBay homepage and enter Gold Sovereign to see what listings match the search term.
Tips when using keyword search:
- Try using different combinations of words i.e. ‘New Full Gold Sovereign’ or ‘Half Used Sovereign’ to find a wider range of listings.
- Some listings may have spelling errors and therefore won’t be found with the correct search word, so try using misspelling to find unusual listings.
Gold Bullion Coins will come in varying conditions, from antique coins to pieces that have been minted very recently. The condition of the item can be included in the search term when searching as some buyers may only want new bullion to purchase, such as ‘New Gold Bullion Coins’.
The last option to search for listings is the advanced word search. eBay’s Advanced Search allows the buyer to search for very specific search terms. There is also the option to search for words in orders such as ‘all words, any order’ or ‘exact words, exact order’ to help find the listing the buyer is after. The buyer can also choose which category to search for, so in this case the buyer could select the ‘Coins’ Category to refine the search.
When the buyer has searched the listings and found what they may wish to purchase, there are several aspects to consider such as bidding and postage.
The postage will vary greatly due to the different weights of gold available. Smaller pieces of Gold Bullion Coins can be posted and will be reasonably priced, but larger quantities of gold maybe sent via courier. This type of service will be preferable because of the buyer will be guaranteed delivery.
One the buyer has found the type of bullion they want, they have two main options to choose from before purchasing any gold bullion. Buying through eBay is usually done through two means:
- Buy it Now
Bidding is eBay’s most common way of buying items. It is vital to consider when bidding, the buyer is entering a legally binding agreement between the buyer and seller. ‘Buy it now’ options are great ways of securing an item without the worry of losing out on a bid. Once the desired Gold Bullion Coins has been bought the payment process can start. PayPal is the most common and secure way of purchasing items through eBay, it is quick and easy for the buyer.
Storing Gold Bullion Coins
As gold is a physical investment, the buyer may wish to take some precautions when storing the gold. If they are storing the gold at their home then it is best to have a secure place such as a safe to store the coins in. Safes are reasonably priced and can be secured to a wall/floor to prevent them being carried away. Here are some tips when keeping gold coins at home:
- Avoid telling too many people about storing gold at home.
- If the buyer has home insurance then it is advisable to declare the gold as the insurance can cover some loss if the home was ever to be burgled. Do bear in mind this may also raise the insurance premium.
Gold can be stored in a deposit box at a bank of the buyer’s choice although this will have a monthly fee, the buyer will benefit from all of the security of the bank.
The buyer can also purchase cases designed for storing coins, such as gold sovereigns. These types of cases are meant for collectors to be able to display their items but it is advised to keep the case stored in a safe place when not being displayed.
Gold investment is one of the most secure forms of investment, whether the buyer is collecting newly minted coins or is looking to buyer older, more unusual coins, Gold Bullion Coins will always have an ever increasing value.
With gold selling at high prices a buyer can choose to look on eBay for their ideal coin which may yield great investment in the future. The buyer can buy coins with confidence thanks to eBay.