In some areas, it has become profitable to flip the 1 oz Gold Coins for a tidy profit. Depending on inventory levels, many local coin shops will pay a premium above the melt value for current year gold coins that are kept in their original Mint State condition.
Some investors are buying gold coins from Costco below melt value when factoring in the rewards. The premium on Costco’s gold coins appears to average around 2.5%. Once receiving them, they bring them to their local coin stores to sell back. If your local coin store will pay 3% above melt, then without factoring in other rewards, its possible to make a quick .5% profit.
Costco Executive members earn 2% cash back, up to $1,000 annually. This is essentially an annual rebate that must be spent on other products in the warehouse. When factoring in other credit card rewards, the potential profit from these transactions can increase by a few percentage points quickly.
The Costco Citibank card, for example, offers 2% rewards for all purchases at Costco and it is possible for those rewards to be deposited as cash into your bank account. Though you may have a better deal with the cards in your wallet.
The practice of flipping gold coins for profit as a side hustle has been around for a long time. Some investors hold onto coins for the arbitrage when the price of gold increases. Other investors look for opportunities to flip coins for a profit.
The profitability can vary depending on which part of the country you’re in and the number of gold investors in your local coin shop’s customer list.
Many investors find great deals on eBay, particularly for historic and vintage gold coins. This includes US Mint Pre-1933 gold coins and circulated gold coins from Europe, such as 20 francs and British Sovereigns. There are many trusted and reputable bullion dealers that use eBay as a sales platform to liquidate excess inventory, such as APMEX, Liberty Coins, Aydin Coins and Pinehurst Coins.
Having a good relationship with the folks at your local coin store is important. They have the best understanding of which coins collectors and investors in the local area have the most interest in, as well as a customer list of willing buyers.
They can also give you an idea of the prices they would be willing to pay, particularly for coins that are graded and encapsulated by reputable third-party grading services like NGC, PCGS and ANACS.
Graded Gold Coins are generally the most liquid and easiest to sell, as they provide verification of the authenticity as well as the condition.
