If you do not frequently attend coin shows, you may wonder what the difference is between a coin show held at a hotel and those “Buying Gold and Silver” groups who rent hotel space for people to bring their gold and silver items (jewelry, dinnerware, coins, etc.) to sell.
First, a coin show is primarily for those people who collect and invest in coins, currency and precious metals. However, if you are not yet a collector or investor, you are welcome to browse and talk to people about collecting and investing. Depending on the size, a coin show includes from several to many different dealers with a variety of interests.
But, coin dealers also frequently work with refineries with old worn coins that are worth more as melt than as old rare coins. As a result several coin dealers are also licensed to buy scrap metals such as old jewelry. Obviously, if you want to sell coins, the dealers will be glad to work with you, but several coin dealers will also work with you in buying your old jewelry. One advantage of a coin show, the dealers compete with each other for your business. You, on the other hand, can access and talk to several different people who are all very knowledgeable about coins, precious metals and current markets.
Now, let’s think about the “Buying Gold and Silver” set up in hotels. First, the group buying from you what you want to sell gives them the upper hand in the transaction. Second, without competition, their power increases and you become their captive audience for their buying pitch. They will have multiple people buying, but the only competition exists in finding which hotel room holds the specific “expert” for what you want to sell – gold or silver, jewelry or coins or some other form of precious metal. Buyers in hotels do not want competition when they buy.
Next, think about business. These groups only buy at a price where they can make a profit. Their cost for travel from out of town, hotel space rental, ads in papers and billboards reduces the amount they can pay you and still make money.
“Wait a minute,” you’re thinking, “coin dealers have to make a profit too.” That’s true. But, coin dealers are buying AND selling coins and metals. Probably most important, the coin dealers are not solely dependent on buying precious metals for their profit. As for expenses, coin shows share the cost of the hotel space among all of the dealers at the show making their overall costs less.
In summary, if you are happy with selling your old jewelry to the buyers set up at hotels, good for you. But, if you are thinking of selling your silver and gold metals, consider other alternatives such as coin dealers or coin shows. Generally, coin dealers offer higher prices when buying precious metals than the “Buying Gold and Silver” groups do.
Now, those who suggest you can make more by mailing them your old gold, just think about it….not a good idea…and we’ll leave it at that!