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Value of Gold
Gold coins are, first and foremost, fixed amounts of gold bullion, a precious metal in its pure, uncoined state. It may be cast as ingots or minted as coins. Melted down, it can be turned into jewelry, or used as an element in various industrial processes. Gold is sold by weight on the open market. The amount of gold in coins and other objects is measured in either Troy ounces, or grams. A Troy ounce weighs approximately 10 percent more than an ordinary, or avoirdupois, ounce.
Gold is sold at commodities exchanges such as the New York Mercantile Exchange (NYMEX) and the Money Exchange (MONEX). Commodities dealers buy and sell large amounts of gold and gold futures. The price changes from moment to moment. Several supply and demand factors determine current price. Old mines may be running low, or new supplies may have been discovered. There may be a glut in the jewelry market, or electronics factories may be using more gold to make computer equipment. A major force in gold prices is the relative price of fiat currencies, such as the U.S. dollar, British pound and Japanese yen. Fiat currencies are paper currencies that have no inherent value. Investors often flee to gold when fiat currencies fall in value.
Coin Price
Sell gold coins when their bullion value is highest. Reputable dealers, such as Lynn Coins and Austin Gold Coins, should always offer prices that are close to current market values. Common modern issues--such as the American Gold Eagle, South African Krugerrand and Canadian Maple Leaf--weigh 1 Troy ounce each. Prized old coins, such as doubloons and moidores, may contain considerably more gold. Old coins, especially, will be worth more because of the historic and numismatic interest in these issues. At the same time, modern gold coins of equal weight will vary in price according to specific issue. Krugerrands, for example, are noted for the extreme fineness of the gold they contain.
Consult with dealers before turning over any gold coins. Reputable dealers are familiar with the features and marketability of individual issues. Describe the coins in your possession. Examine images and note mint marks. Pay attention to dates. Specific issues of otherwise similar coins may be worth far more than others of the same type. American $1 gold pieces from 1853 are worth more than double the same pieces from 1857. And each is worth hundreds of dollars in modern money. Mail in your coins only when you are sure that you are getting their true value.