Gold & Silver Coins – Sydney

What You Need to Know About Buying or Selling Gold and Silver Coins in Sydney

If you decide to get into the game of precious metals investing, one of the first things you will notice is that the physical gold and silver assets can take on many different forms. When most of us think about owning gold, we envision a shelf full of pristine gold bars, as we’ve seen in the movies for so many years. However, while bars are a form of tradeable gold bullion, they are not the only form. On the contrary, you can easily do all your precious metals trading with coins.

Buying or Selling Gold and Silver Coins in Sydney

The first thing you need to know if you are interested in buying and selling silver or gold coins in Sydney is that coins can qualify as bullion. Though ‘bullion’ is often used as a synonym for those big gold bars we were talking about before, it actually has a significantly more general definition.

Indeed, ‘bullion’ is just the term used to describe precious metals that fit two different characteristics. First, bullion always refers to precious metals that are being bought or sold in bulk. Second, bullion is valued by weight.

The second factor here is important to remember when you are thinking about focusing your precious metals trading on coins. Oftentimes, gold or silver coins are legal tender, which means that they have an assigned value based on existing currency systems. When you trade coins as bullion, you ignore this legal tender value. Instead, you value the coins based on their weight in gold or silver. While you can spend these coins as legal money, they are typically worth more for their weight in precious metal.

Take some old pence, shilling and florin coins. These coins contain a percentage of silver. They are not pure silver, but they have enough silver contents to be traded in bulk as bullion. Their precious metal value, in other words, is greater than their value as legal tender.

If you decide to invest in gold or silver coins in Sydney, you will find that there are a few advantages to your investment that other types of bullion (particularly gold or silver bars) can’t provide. The biggest of these advantages is that coins are highly liquid. Thanks to their small size and high collectability, coins are almost always easy to liquidate for cash. Your potential buyers could include precious metal investors, coin collectors, historians, museums, pawn shops and more. With gold or silver bars, you are almost always going to need to trade with another serious precious metals investor. As a result, bullion bars are more difficult to liquidate—especially in tougher economic times.

Work with AGD Precious Metals to Establish Your Coin Trading Strategy

At AGD Precious Metals, we frequently work with Sydney gold coins collectors. If you are interested in investing in gold or silver coins, one of our associates can sit down with you, discuss the pros and cons and help you get started with buying or selling. To learn more about us, give us a call on (03) 9650 1758.