Are Gold And Silver Coins A Scam Home Business?

An ancient hobby of Kings was to collect coins from all over the world. This is called “numismatics” (pronounced new-miss-MA-tics). The person collecting the coins is a “numismatist” (pronounced new-MIZ-ma-tist). Now we see home businesses emerging in the form of network marketing with a product of gold and silver coins. Is this a timely event, a profitable activity?
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Everywhere you look these days there are signs and ads for buying gold and silver. Some say it is a sign of a shaky world economy. Some say it is simply that the value of gold and silver are on a constant rise over a long period of time. To an entrepreneur, the smell of profit lingers in the air. People who buy gold and silver depend on the seller’s ignorance of the market or the seller’s need for immediate cash. He then gambles on the continued rise of the metal’s value.

There is a huge difference between the value of metal and artistic value. Any collector be it antiques, art, seashells or coins have a demand for an item that appeals to them. Gold and silver are appealing but slab coins or bullion are as far apart from a certified coin as Mona Lisa is from a poster. It’s the same image but not the same thing.

When you buy bullion or coins that have not been graded or certified by a licensed agency, you are dealing in the price of metal. An American Eagle silver dollar, for example, if presented to a cashier, would be valued at one dollar. It’s weight in silver right now, though, is $18. If you took nice pictures of it and auctioned it off on eBay, you might possibly get more. If you purchased a certified coin and had it encapsulated, you could get even more for it.

Before you buy or sell gold or silver coins, you would be smart to know the different values and how they are determined. One concerned eBay member posted a bulletin which can be found at: http://reviews.ebay.com/The-best-coin-graders-NGC-ANACS-and-the-worst_W0QQugidZ10000000003785971 with information and reviews of the agencies that grade coins. NGC and ANACS were named as the most reliable.

Some factors that can make a coin more valuable are age, lack of availability and beauty. Numismatists have different tastes but one constant is the MS70 grading. It is certified to be perfect and encased for its protection. There may be many coins but not that many certified to be MS70 and this increases its value.

To prove this, simply do some research online. For example, one dealer online sells three different versions of the American Eagle silver dollar: a roll of “mint” coins for $459 ($22.95 a coin); an MS69 certified for $29.95; and an MS70 certified for $125.

To understand this, imagine an Art Dealer trying to sell you an antique silver tray that is tarnished and dented. You would not want to pay very much. But if it were clean, the details easy to see, so shiny that you had to squint your eyes, you might be afraid to ask “How much?”

Establishing the value of a coin for future sale can only be guessed at by using the trend of the past. In other words, taking the American Eagle silver dollar, we see that an MS70 coin bought in 1997 is selling for $500. In all fairness, this price depends on availability and demand. But you can see the chart and the trend is there. (Hold down “Ctrl” and tap the + button to magnify the chart)
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A home business in gold and silver coins could be very profitable. The idea is to market something non-perishable that will not go out of style and that people would not mind holding on to. In any case, marketer or consumer, using the above criteria may help.

Learn more about Making Money With Gold and Silver Coins. Stop by Cheryl Currie’s site where you can find out all about a Home Business and what it can do for you.