Invest in Coins But Be Careful: 5 Things to Avoid

Buying silver and gold coins as a way to expand your financial portfolio can be very lucrative.  There are however, some things you should look into before you invest your hard-earned cash into coins and bullion.

1. You may tempted by that late night infomercial on the shopping tv stations showing you this brand new set of collectible commemorative coins for sale. They sound great and seem like a great investment, after all they do say they are limited in quantity and made from pure gold or silver. But the price does not reflect the value and it is not the best way to invest in coins.

For example, as much as the children in your life may love these "Frozen" Elsa coins now, they are probably not the best choice to beef up your portfolio for the future.  (However, if you do want to buy these, they are available at www.hsn.com

2. Prices that are too good to be true.  When you shop online for coins, be careful about who you trust. Places that claim to have lower prices, or are selling coins and bullion below market value, can be as the saying goes "too good to be true."  For example, if you find a Canadian Gold Maple on Ebay for $100, you can pretty much guarantee you are getting scammed.  While buying silver and gold coins and bullion in bulk can make the price lower, pay close attention to any hidden fees and shipping costs that are associated with the purchase.

3.  While collectors of coins may find value in rare and mishandled coins, investors should stay clear of these high-premium new issue commemorative coins that are often heavily promoted. For example each year the mint will produce a commemorative Gold Eagle or Gold Maple Leaf that will fetch higher premiums. Steer clear of these and stick to the regular Gold Maple Leafs and Gold American Eagles so you get more bang for your buck.

4. Buying gold and silver coins as an investment without doing your research. This is a mistake we see very often. People who have spent a lot of money on different gold and silver coins, but when they want to get a value, they are shocked by what they find. Not all coins are created equal. An NCG graded coin with a high score and an even higher price tag is probably not going to make you more money in the future. Instead, invest in coins that are more common and are more than likely going to multiply in worth over time.

5. Not reading the fine lines before purchasing.  A lot of times, we buy something only to realize that we did not read the fine print that was hidden at the bottom of the page. The internet makes it so easy for anyone to purchase coins with your debit card, through a bank wire and even with a credit card. But, always read all the polices and terms and conditions before you do.  What you may find is that the company does not take responsibility if your coins are "lost" in transit or there may be crazy fees that will be tacked on to  your purchase.

Come into our Midtown, Atlanta location of Atlanta Gold and Silver and talk to us about some coin and bullion investment options that may be right for you. We make sure our customers are well informed and we keep the entire process a transparent one. Trust and accountability are the cornerstones of our family gold and coin business.

Give the Gift of Coins

From baby gifts and showers to family members and friends, silver and gold coins can be that gift that keeps on giving.  Here's a look at some ideas and times when giving a coin is...well so much more.

Occasions for Coins:

• New baby
• Christening, Baptism and other religious rites of passage
• Big birthdays
• Bat and Bar Mitzvah
• Weddings
• Graduation

What type to Give: The options are endless. Depending on your budget and preference, there are so many types of silver coins to choose from.

• Proof sets: These are great for commemorating everything such as a birth year or graduation year. 
• American Eagle Coins: these are true beauties with the Walking Liberty design. These were first made in 1986 and continue until the present. These coins are one ounce of .999 fine silver (aka Pure silver)

• American Eagle Gold Coins:  These are available in various sizes and denominations, going up to a $50 dollar coin which is 1oz .  Because these are GOLD, the price is obviously going to be much higher than the silver, but these are a great investment for a special occasion. 
• Commemorative Coins: Many times these coins, especially the limited edition ones can be almost impossible to get your hands on. As soon as the mint releases these types of coins to the public, they sell out in a snap.  Check out these coins that are either back ordered or Sold Out.  Now wouldn't you love to have one of those? http://catalog.usmint.gov/coin-programs/commemorative-coins/#start=1   

Creative wrapping and storage ideas;

10-drawer custom wood display for 56 . Check it out here

Is Your Gold Fake?

Many times people will bring in heavy gold chains, usually marked 14K, to sell at Atlanta Gold and Silver. Even with a mark, we always test the metals in one or two ways to ensure its authenticity.  First, we do a scratch test with acids for the various Karats.  However, sometimes this may not be fool-proof method, especially when their is heavy metal plating involved. Second, we put the jewelry in our x-ray machine and it gives us a full report of the metal composition.

Here's the bad news...sometimes a chain or piece of jewelry that someone has purchased is not what it appears to be.  Just like counterfeit Louis Vuitton or Gucci handbags, jewelry counterfeiting with hallmarks is a serious problem.  We always feel badly when we have to tell our customer that we can't buy the piece from them, especially when they tell us how much they originally paid for the item.

So, we always try to tell our clients to be very wary before purchasing jewelry (precious jewelry such as gold, silver and diamonds) from an unauthorized source or person via eBay, craigslist or even a flea market.  Many times if a deal is too good to be true, it generally is.  Not to say that you won't find some hidden treasures around town, but when you are investing in something like gold to resell, make sure to look for a few factors. 

- Is it magnetic?  Magnets, unlike acid testing, are an easy thing to bring around with you.  They are also the easiest way to rule out fake metals (ones that are not pure gold or sterling).  If the piece is drawn to the magnet (and it says 14k or even 18k), it is fake. 

-The hallmark: Look closely at the Hallmark on the item and where it is placed. If it looks like the mark is cut off or says something else, that is also a tell tale sign to walk away. 

It's fake!  How do we know?  The acid test created a green color. 

-Another easy way to spot a fake is to look closely at the metal. This is especially true when it comes to used jewelry such as pendants and rings that are marked 14k. If closely and see peeling of any sort, like the gold is fading off, then it is not correctly marked. 

In this industry sometimes, taking risks can end up making you a fortune, but beware because there are a lot of counterfeit pieces of jewelry floating around. 

Diamond Due Diligence

Diamonds are on our mind today. Here is some info, resources, and a crazy story (and lesson) ) for you to explore. 

If you are looking to sell valuable diamond jewelry, such as heirloom pieces, estate diamonds or even a diamond ring, make sure to do your research first.  At Atlanta Gold & Silver, we have many clients who bring us very expensive pieces they want to sell.  In order to make sure we can give them the price they want from their diamond jewelry, we take our time and work with all of our resources to make this possible.  That does not mean, however,  that we can guarantee you will get the amount of money you think your diamond is worth, but we will get you an amount that will make you happy. Most importantly, we do not pressure our clients to settle. 

If you do have some jewelry that has been in the vault for years and the value is over $8 thousand, or maybe an old engagement ring that you don't want, make sure to get the jewelry certified.  Whether it is a diamond ring, an antique diamond pin or a diamond necklace, it is essential to get it certified and graded by the GIA (Gem Institute of America) every 10 years.   There is a small cost involved, but it will net you a lot more money when you sell. The website is very informational and provides all the information you need to submit your gem for grading.  They even have a page updated weekly that tells you the turnaround time for your diamond.

Note:  An appraisal, from a jewelry store or insurance company, is not the same as GIA certification. In fact, you may notice a large difference between the appraised price and the actual amount you are offered. That is because, appraisals are based on replacement value and the retail price of a similar piece. 

Even if you don't send your stone to the GIA, the site still provides a wealth of information about diamonds and other gem stones, including all the factors and varieties that can increase or decrease the value. Remember, the bigger the size does not always mean the bigger the value. Value is based on the quality of the stone.

If you are in the market to buy a diamond ring, or invest in a diamond, make sure to do your research on the GIA website. With the knowledge about all factors including slight differences in color and cut, you will be a much more informed and smarter buyer. Also, when making a large investment in a stone or diamond jewelry, always insist on the certification of the piece to ensure that you are getting exactly what you pay for.


Now for the lesson:  Always check your pockets.  One Huntington Beach woman made this terrible mistake when she sold a jean jacket in a garage sale for $20.  Later, she realized that her diamond earrings, worth $18,000 were still in the pockets. Read the full story here.

Old Coins Can Be Worth More Than You Think

 For years, people have been saving up there up their coins for a rainy day. Whether or not you ever cash them in, it feels good to know that they are there if you ever need them.  

But what you may not realize, especially if you have inherited a family members old coins, or you yourself have a jar stashed somewhere that you started collecting many years ago, is that there may be a lot more value in that old jar of coins than meets the eye. 

In fact, at Atlanta Gold and Silver, we have been seeing a lot of people coming in with old coin collections and walking out the door with a large check in hand. Of course, not every old jar of coins is valuable (in terms of silver, you want to look for dimes and quarters pre 1965), but there is no harm in looking. 

So, how do you know if your bag of dimes is worth more than, well, a bag of dimes? Here are some things to look for and some tips that may help you find some substantial money laying around the house.

Note: these values are not absolute and they are based on the price of silver in May 2013.  These are based the melt value, and do not consider condition or possible collector's value. 

• 1916-1945 Mercury dimes.  These are 90% silver (10 percent copper) and each dime can fetch a price of around $1.50 
  
• 1946-1964 Roosevelt Dime: Despite the year, these dimes are the same weight (2.5 grams) as the Mercury dimes and are worth the exact same as the earlier dimes. 

• The rest of your dimes (beginning in 1965), are simply dimes worth 10 cents each. 
• 1916-1930 Standing Lady Liberty Quarter.  If you happen to have these in your old stash, you are in luck. At 6.25 grams, you have a little over $4 in silver value. 

• 1932-`1964 Quarter.  Any quarters during this period (before 1965) are worth the same as the Lady Liberty Quarters and weigh the same 6.25 grams.
• While you are less likely to have half dollars just collecting dust in the house, it's still worth looking.  Any half dollar minted in 1964 or earlier can be worth about 12 dollars. 
• Even the ones that are made between 1965-1970 still have a little value in them (they are composed of 40% silver, compared to the pre-1964 90% silver ones)

Here are a few more coins that may bring you some extra cash..

• Morgan Dollar (1878-1921).  Based on the price of silver, you could have about 17 dollars in just one of those. 
  
• Peace Dollar (1921-1935) Same as above

To find out more about the different types of coins and mintage of the coins, visit http://www.usmint.gov/

That's What We Call a Rock

During a recent Christie's New York  Spring  auction sale, a diamond, called the Princie Diamond was sold for more than $39.3 million dollars this past week. The diamond is a 34.65 carat fancy intense pink cushion-cut diamond.

This price is a new record for Christies for any price of a jewel every sold. To read more about the origin and the history of this diamond, click here.

But that wasn't the only diamond that seemed to draw big buyers in at the auction. Here is a roundup of some of the other impressive jewelry sales. 

 

• A diamond ring by Harry Winston sold for $3.3 million. The ring was set with a marquise-cut diamond, weighing approximately 23.30 carats, flanked on either side by a tapered baguette-cut diamond and mounted in platinum (source: Christie's)

•  A three strand natural pearl necklace sold for $1.1 million 
  
• An 11.39 D Color internally flawless Emerald Cut Diamond fetched  $1.3 million

• A Harry Winston Diamond and Emerald Necklace was sold for $1.2 million
  

The auction took place in New York on April 16th.  Apparently, diamonds were the star of the show.  For more about the auction, visit www.christies.com