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Buying Gold & Silver On Auction Sites

Author: Lawrence Chard - Director and Expert Numismatist

Published: 9 Apr 2018

Last Updated: 8 Jul 2020

Synopsis

For those new to the world of numismatics and bullion investing, the initial dive into the different methods of wealth retention and potential profits can be slightly dizzying. This initially intimidating commitment is further exacerbated through illegitimate marketing practices from seemingly honest “dealers” and widespread selling of “rare commemorative, once in a lifetime” pieces that are marketed at prices well beyond the intrinsic value of the coin, and this is before we enter the unregulated market of third party sellers.  

Chards Gold and Bullion Dealer Cheap Investment Bullion Online

Buying Cheap  Bullion Online vs A Bullion Dealer

Our advice is to use a reputable dealer. Don't use an auction site unless you definitely know what you are buying or selling. When buying, do you know that the picture displayed is the coin you are buying? Or that the description is factually correct? Do your homework first and find out the current market price. Maybe contact the seller directly and ask questions about the coin. Check you can get your money back, or that you are protected if it turns out to be a fake or not what you expected. You know it yourself, ‘if it seems too good to be true, it probably is’. If a one ounce Krugerrand being offered on eBay for £199.99 including delivery when gold is at £950 an ounce, do you really think you’re going to either receive it, or receive what it claims? We know from experience that you need to be very careful and that auctioned coins aren’t always the best deal you can get. Contact us if you are buying or selling, we will always give you a competitive price or offer.

2016 Battle of Hastings 50 Pence "Sells" for Over £63,000

Whilst an argument can be made for perhaps making the market more accessible to casual investors, third party selling sites such as eBay also expose the uninformed or new coin enthusiasts to fakes, misinformation and massively inflated prices.  A perfect example of the later, and by far not the only example we could choose from, is the alleged selling of a 2016 battle of Hastings 50 pence coin for over 126,000 times its face value. 

2016 Battle Of Hastings 50 Pence Coin Queen Elizabeth II Ian Rank Broadley Collectable 50p

Buying Collectable Coins and Bullion Online 

Whilst an argument can be made for perhaps making the market more accessible to casual investors, third party selling sites such as eBay also expose the uninformed or new coin enthusiasts to fakes, misinformation and massively inflated prices.  A perfect example of the later, and by far not the only example we could choose from, is the alleged selling of a 2016 battle of Hastings 50 pence coin for over 126,000 times its face value. However, it was not the artistic direction that saw the piece demand such a price of £63,1000. Under usual circumstance or when purchasing from a reputable dealer the price of a coin can be dictated by its scarcity, legitimised by the “mintage figure” of that particular coin. Even with this in mind it is hard to paint a clear picture as to how this “sold” for such a price as the 2016 Battle of Hastings coin is far from the hardest 50 pence to come across, with over 6 million in circulation, compared to the elusive Key Gardens 50 pence that has a sparse 210,000 currently swapping hands.  

If the piece really did sell for such an excessive amount, the buyer will be kicking themselves after seeing our price.

Further Reading

You may wish to view all of our articles on our gold guide and silver guide. 

Our Advice Selling Gold Coins on eBay.

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