Everything you need to know about coin types, terminology, fair pricing, and how to protect yourself from counterfeits — compiled from our years of experience in the precious metals industry.
We understand that the coin and bullion industry can be confusing and there is an over-abundance of information out there. It’s hard to know who to trust and who might be trying to take advantage of your lack of knowledge. We want you to feel confident and comfortable doing business with us, so we developed this guide to share some of the knowledge and experience that we’ve obtained over the years. Our goal is to give you the basic facts and help you to make informed buying and selling decisions.
We hope that you use this guide as a resource in the future and that you will contact us if you have any further questions. You can call us at (404) 236-9744, email us at sales@atlantagoldandcoin.com, or find us on the web at atlantagoldandcoin.com.
Before diving in, here are the key terms you’ll encounter when buying or selling precious metals.
Numismatic coins derive their value based on age, rarity (number minted), condition and underlying metal content. They can be made from any number of metals, from aluminum to nickel-copper to silver and gold. In many cases, the precious metal value is the least important factor. Numismatic coins are also commonly referred to as low mintage, rare or key date coins, and are typically preferred by coin collectors, numismatists and investors of collectibles.
In general, numismatic coins tend to increase in value over time; however, they haven’t performed as well as bullion coins in recent years given relatively poor economic conditions over the past few years.
Some of the more popular U.S. minted numismatic coins include:
Other numismatic coins in high demand include Liberty Head half cents and large cents, two cent pieces, three cent nickel and silver pieces, and twenty cent pieces. For additional information on rare or numismatic coins, please see our Rare Coin Guide.
Professionally graded coins are coins that have been evaluated and certified by a third party grading company. Once authenticated and graded, the coin will be sonically sealed in a tamper-proof hard plastic holder. Having your coins graded provides a way to confirm authenticity and objectively confirm the grade or condition, eliminating subjectivity.
Most investors and collectors are willing to pay a premium for professionally graded coins. The two most well-known grading companies are Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC), with American Numismatic Association Certification Service (ANACS) coming in a close third. The grading scale is 1 to 70, with 1 being extremely poor condition and 70 being perfect.
In addition to standard grading, coins can be further assessed by Certified Acceptance Corporation (CAC). Coins meeting their stringent requirements are provided with a green CAC sticker and are typically in higher demand and sell at higher prices.
Proof coins are specially minted with collectors and investors in mind. They differ from business-strike coins in that a special dye creates a mirror-like finish background and a frosted foreground. Proof coins are not only more visually appealing, but are also typically lower mintage. The visual appeal and rarity often translates into a premium for these coins.
Most proof coins come with a certificate of authenticity and a display case from the U.S. Mint. Proof coins with original government paperwork sell at a higher premium. Professionally graded proof coins, depending on the grade, will further increase in value.
Bullion coins are primarily bought and sold for their precious metals content. Gold, silver and platinum are the highest minted bullion coins, although palladium coins have begun to gain popularity. The value is based on the current price of the underlying precious metal, commonly referred to as the “spot price.”
One troy ounce of gold, silver or platinum is equal to 31.1 grams (different from a standard ounce at 28 grams). This is important because quotes from coin or bullion dealers are based on a troy ounce, not a standard ounce.
| Coins | 1oz | 1/2 oz | 1/4 oz | 1/10 oz | 1/20 oz |
|---|---|---|---|---|---|
| American Gold & Platinum Eagles | ✓ | ✓ | ✓ | ✓ | |
| American Gold & Platinum Buffaloes | ✓ | ✓ | ✓ | ✓ | |
| Canadian Gold & Platinum Maple Leafs | ✓ | ✓ | ✓ | ✓ | ✓ |
| South African Gold Krugerrands | ✓ | ✓ | ✓ | ✓ | |
| Chinese Gold & Platinum Pandas | ✓ | ✓ | ✓ | ✓ | ✓ |
| Australian Gold & Platinum Kangaroos | ✓ | ✓ | ✓ | ✓ | ✓ |
| Austrian Gold Philharmonics | ✓ | ✓ | ✓ | ✓ |
American Silver Eagles, American Silver Buffaloes, Canadian Silver Maple Leafs, Chinese Silver Pandas, Australian Silver Kangaroos, Austrian Silver Philharmonics, British Silver Britannias, and Mexican Silver Libertads.
Government issued coins are guaranteed by the government of issuance to contain the exact purity and weight outlined in specifications. This guarantee, along with worldwide recognizability, is why they are typically bought and sold at higher prices than privately minted bars and rounds. In the U.S., American Eagles and Buffaloes are the most popular and recognizable.
While purity of gold coins varies from 21.6k to 24k, the amount of pure gold generally remains the same. For example, the American Gold Eagle is 22k gold and the American Gold Buffalo is 24k — but both contain exactly one troy ounce of pure gold. Coins less than 24k are mixed with alloys like copper and silver for durability. An American Gold Eagle weighs 33.93 grams total, while 24k coins like Buffaloes, Canadian Maple Leafs, and Chinese Pandas weigh 31.1 grams.
Privately minted bullion in the form of bars, rounds and ingots comprises a large portion of the bullion industry. They come in sizes from 1 gram up to a kilogram or more. Well-known and reputable producers include Johnson Matthey, Engelhard, Credit Suisse, Pamp Suisse and the Perth Mint.
Private mints like the Franklin Mint produce sterling silver (92.5%) bars, rounds and ingots. Since sterling silver is less than .999 fine, these items are in less demand and are bought and sold at lower rates. However, the Franklin Mint is highly reputable and their sterling silver often trades at slightly higher demand than generic sterling silver.
Junk silver coins are primarily bought and sold for their silver content as opposed to collectible or numismatic value. They differ from bullion coins in that they are less than .999 fine silver. Junk silver is most commonly associated with 90% U.S. silver half dollars, quarters, and dimes minted in 1964 and earlier.
The term can also refer to other silver coins including 80% silver Canadian dimes and quarters (minted 1966 and earlier), 80% silver Canadian half dollars and silver dollars (1967 and earlier), 50% silver British coins (1920–1946), 92.5% silver British coins (1919 and earlier), 40% silver U.S. Kennedy half dollars (1965–1970), and 35% silver war nickels (1942–1945).
The most common 90% junk silver coins bought, sold and traded in the U.S.:
Unlike other types of coins which are traded individually, junk silver coins are usually bought and sold in bulk due to the relatively small value of each individual coin. They are almost always bought and sold either by weight or by face value.
When bought or sold by weight, coins are weighed on a scale and the agreed upon price is paid per troy ounce. This method is especially common for very large amounts or when coins have above average wear (which reduces silver content).
When bought or sold at face value, a quote is provided as a multiple of the face value. For example, a price of 20 times face value for silver dimes means $2.00 each. Twenty times face value translates to $5.00 per quarter and $10.00 per half dollar. These coins are commonly bought and sold in $50, $100, $250, $500 or $1000 face value bags.
One of the most common questions we receive is “how do I sell my coins and bullion?” It’s difficult to cover every aspect, but we’ve compiled some helpful hints that will help you to be successful when the time comes to sell your coins.
An honest coin or bullion dealer should be transparent and be willing to provide you with their current buying rates for gold, silver and platinum coins and bullion on their website or over the phone.
Numismatic coins, however, typically need to be evaluated in person to determine their value and it’s reasonable for a dealer to provide a price range over the phone in lieu of a binding offer.
So how do you know that you’re receiving a fair offer for your rare or numismatic coins? While there are a number of price guides available, both online and in print, most reputable coin dealers use “The Official Blue Book: A Handbook of U.S. Coins” by R.S. Yeoman or “The Coin Dealer Newsletter” (also known as the “grey sheet”).
Typically, the “Blue Book” provides more accurate pricing information for rare or numismatic coins, as most coin collectors are familiar with the “grey sheet” and attempt to purchase coins at or below the most recent stated prices. As a result, you should expect to receive quotes for less than the stated prices in the “grey sheet.” Quotes may range anywhere from 60%–80% of the stated value, based on the rarity and market for the particular coin.
The above price guides are available to coin dealers and coin collectors alike, so don’t hesitate to pick up a copy in advance of your coin appraisal to get a general idea of the value of your coins.
If you’re new to the coin and bullion industry, we recommend that you take some time to educate yourself before making your first purchase. It’s important to have a clearly defined goal and plan. The following guidelines will help provide direction on how to go about investing in coins or bullion:
Due to the current high prices of gold, silver and platinum, counterfeiters have entered the coin and bullion market in record numbers. Relatively worthless metals such as tungsten, copper, and others have been successfully produced into extremely realistic counterfeits. The best way to protect yourself is to first research the coin dealer you plan on doing business with. A reputable, experienced dealer will have the knowledge and tools to identify potential counterfeit items.
Beyond that, here are four things you can do to drastically reduce the possibility of purchasing counterfeit or replica coins and bullion:
Purchase a scale that measures in tenths, if not hundredths, of a gram. Specifications for nearly all government issued coins and privately minted bullion can be found online. Weighing the item and comparing it to specifications is one of the most reliable ways to confirm authenticity.
Calipers measure the length, width, and/or depth of an item with high accuracy. Coins, bars and rounds are produced to tight specifications — the more accurate your measurements, the more certain you can be that your item is authentic. Available at Amazon or any local hardware store.
Precious metals including gold, silver and platinum aren’t magnetic. If the item is magnetic, it’s a replica or counterfeit. Standard magnets may not be strong enough to identify plated replicas, so rare earth (neodymium) magnets are recommended. Available on Amazon.
Fisch Instruments, headquartered in South Africa, produces the leading counterfeit gold, platinum and silver coin detectors in the industry. They can be ordered directly from thefisch.com or through authorized retailers. A good investment if you plan on purchasing a substantial amount of bullion coins.
In summary, knowledge is power. It’s important to have a general idea of the type of coins and bullion that you’re interested in selling so that you can maximize your payout. If time permits, identify and categorize your coins in advance of an evaluation or coin appraisal. Also consider picking up one of the industry leading pricing guides to help estimate the value of your coins.
On the other hand, if you’re in the market to buy coins or bullion, determine if you’re primarily interested in purchasing coins as a hobby or as a long term investment, hedge, or to diversify your portfolio. Weigh the pros and cons of investing in government issued coins and bullion versus privately minted bullion, and always establish an exit plan in advance of your purchase.
Only conduct business with reputable coin dealers and attempt to establish a relationship with a local coin dealer to obtain preferred pricing and early access to new inventory.
We hope you found our Ultimate Guide to Buying & Selling Coins & Bullion helpful and invite you to contact Atlanta Gold & Coin at (404) 236-9744 or via email at sales@atlantagoldandcoin.com if we can be of any further assistance.
Schedule a private, no-obligation appointment with our team. We’ll walk you through the process and ensure you receive a fair, transparent offer.