Buying gold coins can be a very difficult task, even in the state of California. The coins come in many sizes, ages, weights and styles, characteristics that greatly affect the value. So you must do a little work before buying to ensure that you get the real gold coins that you want at a price that is comparable to the market rate. This includes educating yourself on not only the coins, but also the dealers and safe storage options available in your area.
Instructions
1. Gather information about the coins you intend to purchase. You should know the difference between a Krugerrand (a 1 ounce South African coin) worth the current price of an ounce of gold and a California Gold Token that is often a gold-plated brass coin. It is easy to find information on the characteristics you should look for when buying a coin. Start with the Numismatic Guaranty Corporation's Coin Encyclopedia.
2. Research and find a respectable dealer. The Better Business Bureau provides a list of the gold dealers located in California and across the U.S. The NGC (see Resources) also offers a list of California gold coin dealers. However, unlike the BBB, NGC registered dealers are certified in gold coin valuation to ensure that you get coins valued at the price paid. Dealers certified through the BBB and the NGC are less likely to participate in fraudulent practices.
3. Inspect the coins before buying. Here's where you put all of that research to good use. Look for the characteristics that authenticate the coin. Also look for imperfections that may devalue the coin. Using these imperfections, you can decide to either reject the coin or haggle for a lower price.
4. Find a safe, dry place for your coins. Safes or deposit boxes are examples. Gold coins shouldn't be left out in the open, especially the older coins, where they can incur damage or get stolen.
5. Call your accountant. Depending on the amount of coins purchased, you may be eligible for a sales tax exemption for the coins. Most gold dealers will omit the sales tax when the coins are sold, but be prepared to contact your accountant if this doesn't happen.
