How to Buy Gold Coins at Cost

The gold coin market is driven by both collectors and investors. Popular gold coins include Gold American Eagles and Gold Canadian Maples. Most gold dealers charge markups on gold coins as high as 50 percent, not including shipping and handling. Here's how you can buy gold coins at cost.

Buying Gold Coins at Cost

Study the gold spot price before purchasing any gold coins. The gold spot price is the price that gold futures are trading at on the commodity exchange. Buy gold coins that weigh 1 oz. or more. Coins that weigh less, such as .10 oz., cost as much as 50 percent more than the spot price of gold. Gold coins that contain 1 oz. of pure gold have a much lower markup of four to 12 percent.

Determine the amount you're willing to invest in gold coins. Understand that it's virtually impossible to buy gold coins at cost because gold dealers make their profit on the retail mark up. However, it is possible to buy gold coins closer to their cost buy purchasing larger quantities. In general, you need to buy at least 10 gold coins to enjoy any significant discounts. Expect to pay a higher markup if you're only buying a few gold coins at a time.

Find a reputable gold dealer who charges minimal markups above the gold spot price. Research how the gold dealer handles issues with storage if needed, and shipping and handling of your gold coins. Companies like allow you to buy your gold coins online.

Calculate the price you'd pay per ounce of gold and compare it with the gold spot price. As a rule of thumb, to compare the spot price of .1 oz of gold, multiply the price you paid by 10 . Multiply .25 oz of gold by 4 times the price paid, and multiply the price paid times 2 for .50 oz. of gold. For 1 oz. gold coins the gold spot price and the price you paid should be equal. If your markup is greater than 12 percent of the gold spot price, you're probably spending too much on the coins.