Steve ask for a guide in thread http://www.greenenergyinvestors.com/index....ost&p=49050 like this so here is my attempt to guide people in buying coins
Should I Buy Coins or Bar
The choice is yours but you should ask the question, “What is easier to sell, a bar, commemorative medallion or a coin that is legal tender in the country that it is produced in?”. If you buy certain coins then in the UK they remain free of Capital Gains Tax as all sterling coin ("Legal Tender") is not a chargeable asset under the Taxation of Chargeable Gains Act 1992
What is Sterling coin or "Legal Tender" is a bit more confusing as all coins before the Coinage Act 1870 are within the prerogative of the Crown and every else is covered by Parliamentary Acts. Basically everything before 1969 is no longer legal tender and can be melted down anything after cannot. Gold coins are treated separately in the different Coinage and Currency Acts and these make all gold coins from 1837 legal tender and they cannot be melted down, this is also why gold coins are CGT free. Silver coins are different again you have to go back to 1947 when there were 50% silver, pre 1920 they were 92.5% silver, none of these are legal tender and are not free of CGT in the UK but modern silver Britannia’s are.
Other countries have different rules so you do need to understand the ones in your country
What Coins Should I Buy, Numismatic or Bullion, Krugers, Ducats, Sovereigns, Maple, etc
If you want a coin may go up in the future because of its rarity value then buy a numismatic coin. You can buy them from most numismatic dealers, in the UK have a look at http://www.bnta.net/ for a list of dealers, there are loads and the coinage does not have to be gold, in fact some of the rarer and more expensive ones are not gold. Like anything rare the price increases but only when there are buyers who have the cash to buy them. Keep away from them unless you want to be a collector as there are better things around to waste your money on. If you think that the financial markets are rigged then you just would not believe the antique market.
If you just want a bullion coin then are many but I suggest that you stick to ones that are easily available in your country as then they are easier to resell as your local dealer will know what they are just by touch and sight. If you take in something like a Poltina then the dealer will not know what it is and you will not get a decent price for it.
Precious metal dealers like Bairds in the UK are not numismatic dealers they are bullion dealers, even though they sell coin it is in the main bullion and not collector quality. Physical bullion is a different business, if it is rare they can't melt it so they do not really want anything to do with numismatic quality coin and they just want to pass it on for as much as they can get.
How Do I Tell That It Is Not A Fake
Whatever you do don’t buy a Fisch, you don’t need one just buy a small metal ruler and a small digital scale that reads to 0.1g, that’s all you need and unlike a specific tester you can use them elsewhere, also a high quality print of the coin helps. You don't need coin testers, specific gravity tests, resonant frequency tests, hardness tests, etc...
Check the coin against the print. Measure the diameter, measure the depth and measure the weight. A clean coin, not drilled, chipped or bent will always be within a few percent of the official size and weight of the coin. If it was gold covered lead it would be 1/3 thicker, it does not sound much but place it next to a real coin and you will see just how much it is. If it is 9ct gold and not 22ct or pure then it would be close to a 1/4 thicker. Your fingers can tell the difference of over 1/1,000 of an inch, it is very, very noticeable!
Last test for coins that are not proofs, balance it on your finger over a carpet and tap the coin lightly with a pencil, this tests to see if the coin has been pressed or stamped and not cast or made of a sandwich of metal. If it goes ‘ping...’ and has passed the other tests it is so real I would be happy to buy it off you, regardless of what you think it is. If it goes ‘dofh’ then it is a fake.
That’s all you need.
What Fakes Are There
They are likely to be fake coins made from 9ct gold or plated lead or other metal. Lets take Krugerrands as an example, if you did get a fake 9ct Krugerrand you would spot it quite easily but not just through the colour as that can be matched by adjusting the metals used to make the coin. Size and weight would be the biggest indicator, if the size was right the coin would only weigh about 25g, the difference of 9g is about the same weight as a £1.00 coin. If the weight was right then it would be a 1/4 larger than its true size be it either wider, deeper or both. A 1/4 of anything is a huge amount and easy to spot.
Trust your senses, I received a 9ct Austrian Ducat fake and as I took it out of the packaging I could tell that it was wrong without resorting to scales or ruler. If you handle a 100 or so 22ct or pure gold coins and then pick up a 9ct or 14ct coin, it will tell you. Handle a 1,000 and you will not even need to pick it up to see that it is wrong. Not everyone has the opportunity to handle lots of coin so reply on the ruler and scale method.
There are meant to be fake coins out there that do weigh the same as the real coin they are supposedly made out of platinum. So even if you find one then don’t worry if anybody found out as currently it would be worth more than gold.
Nobody has found tungsten fakes yet because the metal is just too hard to work with and gold is still too cheap. Try stamping tungsten in the same way that a coin is made and it will destroy the stamp mill after a few rounds have been through it. The only way to do it would be to use a tungsten core with a gold bonded outer shell that could be stamped. A setup that can do this would be costly, it would have to produce a lot of fake coins to make it worthwhile or the price of gold would have to be far higher.
Apart from Tungsten and Platinum just about everything heavier than gold glows in the dark and makes your hair fall out if you near it for too long.
Private buyers if you can find them but be careful of selling anything but numismatic coins in an auction as the margin may just wipe out your profit. Dealers are good as they basically charge spread/commission on the price of gold, gold price futures, the size of their stock and the amount of demand they are seeing. They are interested in turnover not investment, sell 1 coin make £10, sell 1,000 coins and make a £10,000. A good dealer will fill up when they think the price of gold is low, future price looks upward and the demand that they see is high. At present most dealers have little stock left and demand is high even though gold price has stabilised. In a selling market they will increase the spread/commission as much as they can to cover any short fall. Some will even hedge the market to reduce any potential loss. Remember that just because you are aware of the market conditions the next person in line may not be or will believe that the price of gold will go up or they must buy gold to fulfil a previous order or buy for manufacturing.
Also you would be amazed at how many people want to buy or sell PM’s without having to notify someone. Relatively compact, easy to sell, price may spike up and down intermittently but over a longer term is quite stable. Buy a coin a month, save them and give them to your children, grandchildren or lover before you pop your clogs or even leave them a letter in your will with a pirates map. Take a few abroad and flog them to pay for you holiday spending money. Physical is so hard to tax, that’s one reason why governments hate PM's