Buy Krugerrands Online Versus Buying From a Dealer

When you are ready to buy krugerrands, where do(For example a proof is usually hand loaded on the
you turn? Modern investors have more choices thanpresses, and double struck on specially polished
at any time in history, and becoming an informed goldblanks).
coin buyer can not only be an enjoyable hobby, butOkay, now you know your krugerrand value- let's
also save you some money as well. Regardless of iftalk about advantages of dealers versus buying
you buy krugerrands online or from your friendlyonline. When you purchase from a dealer, you are
neighborhood dealer, you need to know how togetting their expertise in addition to coin itself. You
determine krugerrand value on your own- don't justare less likely to get a fake krugerrand from a dealer,
take a seller's word. Bullion gold coins are struck to bebecause they are in the business of dealing gold and
used as an investment medium in gold. The majorityit is in their own interest to protect their reputation.
of the coin's value comes from its gold content, orAlso, because they are experienced in dealing with
purity. Krugerrands are 22 carats, because they aregold coins (especially if you have a dealer who
alloyed with copper to make them more durable. If aspecializes in krugerrands), they are more likely to
kruger was 24 carats, or pure gold, it could be easilyable to spot a fake than an amateur investor. A
dented, and even scratched with something as softdealer is also a good bet if you want to buy a
as your fingernail. By adding copper (1/12 of volume),krugerrand for its numismatic value- or collectability.
the Rand Refinery creates a more durable coin withSo if you want a proof krugerrand, which is more
the kruger's distinctive dark golden hue. The coin isvaluable because of the special preparation and
actually heavier than the denomination marked on it-limited mintage numbers, a knowledgeable dealer is a
for example a 1 oz gold krugerrand has one fullgood choice for getting good information and a fair
ounce of gold and is heavier still by the added copperprice. There are some disadvantages. You may not
content. This ensures that buyers get what theyhave a dealer in your town- so there could be travel.
want- a convenient, standardized method of buyingSome dealers prefer to buy and sell in bulk, so they
gold. Your first task in determining how much amay not want to sell you a single coin. Finally some
krugerrand is worth is to determine that value ofdealers do charge a higher price than what you could
that gold. If you do a Google search on "Gold Spotget online. Speaking of buying krugerrands online,
Price" you will turn up a number of real time quotesthere are a few advantages to take note of. When
for gold. Once you know the gold price, you can goyou buy online, you have access to hundreds of
on to determine what the premium for the coin is,coins- more than any dealer could reasonably stock.
and if it's a good investment.It's also very convenient- you can buy a coin from a
Your next step is to determine what the currentcollector in New York while sitting at your kitchen
price for the size of krugerrand you are shopping fortable in Texas. In some cases if you're quick and bid
is. (A quick side note- premiums on the fractalat the right time, you can get a lower price than you
krugerrands are higher. So if you are planning onwould pay at a dealer. The down side of buying
buying five 1/10 oz gold krugerrands, you might wantkrugerrands online includes a greater chance of
to consider just buying a 1/2 oz krugerrand instead,getting a counterfeit krugerrand. If you buy using
you can save a little money). You can let your fingersPaypal you are protected up to $2000, but if you
do the walking- call a few local coin dealers and seebuy a lot of krugers exceeding $2000 you may be at
what prices they are selling krugers for. Anotherrisk. You can also mitigate risk by buying from sellers
convenient way to get an idea of what thewith a large number of sales and a good feedback
krugerrand price is to go to eBay. You'll need to havescore. Finally selling krugerrands on ebay isn't free. As
an eBay account to do this- for some strange reasonof this writing, it costs about $70 to sell a krugerrand.
they won't let you see completed auctions without it.While the seller pays these fees, they are passed on
If you don't have an account just sign up- they'reto the buyers in terms of higher prices.
free. Once you have your account and you haveSo what is the right answer- should you buy from a
logged in, type the size of kruger you are looking fordealer or buy online? We recommend a hybrid
into the search box. On the left hand side, towardapproach. Find a dealer who sells online. This way you
the middle of the page, you'll see search options. Beminimize risk, and you get all the conveniences of an
sure to click the tic box next to completed listing,online purchase. In absence of a dealer listing you like,
and then search. Completed auctions will show thedo your research, determine the current krugerrand
listing price bolded in green. This is price that buyersprice, and check the quotes from both dealers and
are paying on the open market, and it's a goodonline, and then make your decision. If you decide to
indicator of the current value of a standard, circulatedbuy krugerrands online versus buying from a dealer,
krugerrand. Uncirculated or proof krugerrands willjust make sure to do your research first!
bring an additional premium due to their special nature