Last updated on May 2nd, 2024 at 03:37 pm
Last Updated on May 2, 2024 Posted by Colonial Acres Coins
For centuries, gold has been considered an item of value. From gold coins to gold jewelry and gold bars, any form of gold could be used as payment for goods and services. In today’s society, gold is worn as a sign of wealth as well as collected and sold in many forms, such as gold coins. Collectors buy gold coins in order to amass a quality collection and then sell gold coins in order to make a quick profit or to invest in more gold. In Canada, there are proper steps to take when buying gold to be assured that you are investing in a quality product and have the ability to sell your gold in the future for a profit. Learn more about this process below.
Determining Value
To begin, when buying and selling gold coins, the value of an item must be determined. When the value of gold is considered, the item will be tested in a number of ways. An earth magnet is used to tell if the item is clearly gold or not gold. Gold is not magnetic so if you do not see the coin touch the magnet, then you are looking at real gold.
Purity stamps are the next indicator of real gold. The purity stamp of a piece will determine what karat the gold is. The marking is usually found with a jeweler’s loupe which is a magnifying glass with 20x magnification. A dealer should be able to tell you what type of gold you are looking at or selling and what karat it is.
A piece that has no stamping or is over 18 karats can be tested with an acid scratch test. The item is scratched on a smooth stone much like slate. A fine mark should be made on the stone and the piece not damaged at all. If this test does not work then 10kt acid is used to see if the scratch stays bright and solid in nature. If the scratch fades, then the item does not pass the test.
As items are appraised, they are sorted by karat and then weighed. The scale used is calibrated on a regular basis and can be recalibrated before weighing coins you may be selling. The scale will show the true weight in grams.
Once the karat and weight have been determined, coins may also have an additional value based on what type they are or historic significance. A true gold dealer will have the know-how and experience to determine the value of a piece, whether you are buying or selling. You want to work with a reputable gold dealer so that you know the coins you are purchasing are of fair value and true gold or that the items you are selling are going to fetch market value.
At Colonial Acres, we specialize in buying and selling gold. We are certified bullion dealers and can easily assist you with an appraisal or help to find a piece you are seeking to add to your collection.
