How To Buy Gold Coins Below Spot Price for Profit

Check out this guide to learn how to buy gold coins for below the current spot price in order to sell them for a profit and generate credit card rewards through manufactured spending.

Gold dealers will typically charge you a premium over the actual gold melt value when you purchase gold coins, but you can take advantage of the methods outlined below to get up to 12% off the sale price of gold coins, so that you can purchase gold for well below the current spot price and make a profit when you sell your gold.

About Buying and Selling Gold

The standard theory behind making money on gold investments is to buy low and sell high, thereby achieving a profit based on market fluctuations when the price of gold rises.

However, the price of gold can be volatile and fluctuate wildly over short periods of time, so it’s a widely held belief that gold is a long-term investment and that you should hold your gold for several years in order to realize any gains.

Therefore, you generally shouldn’t buy and sell gold over short periods of time and expect to make a large profit, but rather use gold as a hedge against inflation and for long-term wealth building.

This is partly true based on the standard practice of buying gold coins and bars from dealers for above the spot price (current market value) and selling your gold coins and bars back to dealers below the spot price, with the difference between the buy and sell price being the spread.

This is because dealers typically charge a premium on top of the spot price for physical gold sales and buy back gold at less than the spot price.

This means that you lose money on the spread between the buying and selling price, so as a gold investor, you have to make up for that loss on the spread with a larger increase in the spot price or market value over time.

On the other hand, if you can buy gold for less than the spot price and then sell your gold at the spot price or even slightly above the spot price, you can earn a profit without having to hold your gold for many years (depending on how the spot price fluctuates).

What Is The Gold Spot Price?

The Spot Price of Gold is a market indicator that reflects the current price that is paid for gold based upon immediate delivery.

As of June 28, 2017, the spot price of gold is around $1,250 for 1 troy ounce of .999% fine gold deliverable now, and you can check the current spot price on GoldPrice.org at any time.

The spot price is what determines the Melt Value of Gold, which is the actual value of the gold within a coin, bar, or piece of jewelry.

You can think of the gold spot price as a theoretical value of gold before it is converted into a coin or bar.

You’ll hardly ever pay the exact spot price when buying gold or receive the exact spot price when selling gold.

This is because a licensed gold dealer will charge a premium above a coin or bar’s melt value when selling gold, and the same dealer will pay less than a coin or bar’s melt value when buying gold, thereby making their profit on the spread.

This is generally true when dealing with gold bullion coins and bars, which typically have a value that is close to the spot price, but some numismatic coins and bars have higher values based on their rarity and collectibility, which is an altogether different value system.

How To Buy Gold At Below Spot Price

If you’re looking to invest in gold for the short-term and make a profit, the best way to make money is to buy gold below the spot price and sell gold above the spot price.

You can buy gold for less than the current spot price on eBay by taking advantage of the eBay Bucks Rewards Program as well as cash back credit cards to make your gold purchases.

By utilizing eBay Bucks and cash rewards credit cards, you can earn up to 12% cash back on your gold coin purchases on eBay, which will result in you paying well below the spot price when you buy gold.

Earn 10% Cash Back on Gold with eBay Bucks

Follow the steps below to access up to 10% cash back earnings with eBay Bucks on a regular basis (please note that eBay Bucks usually only pays out a 1% rebate, but you can earn up to 10% by following these steps):

1. You must first Register for eBay Bucks if you are not already a member.

2. Next, you must enroll your eBay account to receive “General Email Promotions.” To do this, visit the “My eBay” section, then the “My Account” section, then the “Communication Preferences” section, then the “Promotions and Surveys” section, and make sure that you check the “General Email Promotions” box and Save your changes. You will now receive promotional messages from eBay when special 6%, 8%, or even 10% earning opportunities are available from eBay Bucks.

3. eBay will now send you emails about what’s new and hot on eBay, great deals, special events, discount coupons, and other special offers, which you will receive directly to your connected email address as well as to the Messages Inbox within your eBay account, so you need to be on the lookout for these eBay Bucks bonuses.

4. You must Activate these special eBay Bucks opportunities for anywhere between 6% and 10% in eBay Bucks earnings when you receive them. Please note that these eBay Bucks bonuses typically occur once every week or so (sometimes longer), and they only last for a limited time when they become available, so you need to Activate your offer and use it within the given time frame.

5. After you Activate your 6%-10% eBay Bucks offer, you can then purchase participating gold coins on eBay and earn up to 10% cash back in eBay Bucks on your purchase.

Gold Coins that Earn eBay Bucks

Once you have activated your special eBay Bucks bonus, you just have to find a participating gold coin for sale that will qualify you for up to 10% in eBay Bucks earnings.

It’s important to note that eBay Bucks are not available on all gold coin purchases, as gold coins listed under the “Bullion” category do not qualify, but other gold coins like those under the “Gold (Pre-1933)” category do qualify, although it depends on the seller and how they have their coin listed as well.

• Austria Gold 100 Coronas (0.9802 oz): Priced $40 Over Melt Value – Earn $100 in eBay Bucks = Buy for $60 Below Melt Value.

• Gold U.S. Mint Commemorative Arts Medal (1 oz): Priced $65 Over Melt Value – Earn $100 in eBay Bucks = Buy for $35 Below Melt Value.

• US Gold $20 Saint-Gaudens Double Eagle (0.9675 oz): Priced $80 Over Melt Value – Earn $100 in eBay Bucks = Buy for $20 Below Melt Value.

• 1908 Hungary 100 Korona Gold Coin (0.9802 oz): Priced $83 Over Melt Value – Earn $100 in eBay Bucks = Buy for $17 Below Melt Value.

• Great Britain Gold Sovereign (0.2354 oz): Priced $15 Over Melt Value – Earn $25 in eBay Bucks = Buy for $10 Below Melt Value.

• US Gold $20 Saint-Gaudens Double Eagle (0.9675 oz): Priced $90 Over Melt Value – Earn $100 in eBay Bucks = Buy for $10 Below Melt Value.

Please note that the above examples are from June 28, 2017, and prices will change, so these are to be used as examples only, although the above coins are usually available for earning eBay Bucks, which will bring the actual price that you pay below the spot price of gold at the time. In addition, the above coin examples are taken from some of the best gold sellers on eBay, including Apmex and Liberty.coin, which are both highly trustworthy sources for buying gold and silver on eBay, and I wouldn’t stray too far from the top eBay sellers when it comes to purchasing gold and silver.

How To Spend Your eBay Bucks

At the end of every quarter throughout the year, all of your eBay Bucks earnings for the prior 3 months will be issued to you in the form of an eBay Bucks certificate.

You then have 30 days to use your eBay Bucks certificate to make purchases on eBay.

You can buy whatever you want on eBay with your eBay Bucks, but a great way to turn your eBay Bucks into cash is to spend them on more gold coins and then resell those gold coins for cash.

Unlike when earning eBay Bucks, there are no restrictions for what types of gold coins you can pay for with your eBay Bucks, so you can simply pick the best gold deals available at the time and pay for them with your eBay Bucks.

So whatever way you look at it, you’ll be buying gold for less than the spot price and/or getting free gold every 3 months with your earned eBay Bucks.

Notes on Earning eBay Bucks for Gold Purchases

You can earn up to $100 in eBay Bucks on any single eBay purchase.

This means that a 10% eBay Bucks bonus applies for up to $1,000 of the purchase amount, and an 8% eBay Bucks bonus applies for up to $1,250 of the purchase amount.

You can earn up to $500 in eBay Bucks for all qualifying purchases during a given calendar quarter.

Make sure that you look for the eBay Bucks rewards logo on the item listing, so that you know you will earn eBay Bucks with your purchase.

eBay Bucks certificates are handed out every 3 months to members who have earned, and once you receive an eBay Bucks certificate, you’ll have 30 days to use it.

In order to earn eBay Bucks, you must purchase the items on eBay and pay with PayPal, and another way to earn even more cash back on your purchases is to use a cash rebate credit card that is linked to your PayPal account to make your purchases.

Earn 2% Cash Back on Gold with Credit Cards

On top of up to 10% back on your gold purchases through eBay Bucks, you can earn another 2% cash back when you pay for your purchases via PayPal with a cash rebate rewards credit card.

Just link a qualifying cash rebate credit card to your PayPal account, and then use that card when you pay for your gold coin purchases on eBay via PayPal to earn additional cash rebates on your purchases.

Credit Cards for Gold Purchases

The following credit cards are a great way to earn extra cash back on your eBay gold purchases:

• Citi Double Cash Card – Earn 2% Cash Back on All Purchases.

• Discover it Miles Card – Earn 3% Cash Back in Your First Year on All Purchases.

• Discover it Card – Earn 2% Cash Back in Your First Year on All Purchases.

• Barclaycard CashForward Card – Earn 1.5% Cash Back on All Purchases.

• Chase Freedom Unlimited – Earn 1.5% Cash Back on All Purchases.

• USAA Limitless Cashback Rewards Card – Earn 2.5% Cash Back on All Purchases (for USAA checking customers).

So in addition to earning up to 10% eBay Bucks on your gold coin purchases, you can earn another 2% for using your rewards credit card to make your eBay purchases, and thereby earn up to 12% cash back or more on your gold coin purchases on eBay.

On a $1,000 gold purchase, that extra 2% cash back amounts to an additional $20 discount, which results in even bigger savings and profits.

• US Gold $20 Saint-Gaudens Double Eagle (0.9675 oz) – Priced $80 Over Melt Value – Earn $100 in eBay Bucks – Earn $25 with 2% Credit Card Rewards = Buy for $45 Below Melt Value (example as of 6/28/2017 with spot price at $1,250).

Manufactured Spending on Gold with Credit Cards

You could utilize this method of buying and selling gold coins to generate manufactured spending on your credit cards to earn even more cash rebates, points, and miles.

To use this gold buying method for manufactured spending, you would need to purchase gold coins with your credit card, sell the gold coins at a profit or at the break-even point, pay off your credit card bills with the sale proceeds, and rinse and repeat to rack up your credit card rewards.

You might also be able to enjoy a Credit Card Bonus on your gold purchases if you are applying for a new credit card to take advantage of these earnings.

How To Sell Your Gold Coins for a Profit

So now that you’ve purchase a gold coin for as much as $85 below the melt value of gold, you’ll need to sell that gold coin in order to earn a profit.

You can sell your gold coins to a local coin store, online to major dealers like Apmex, to other buyers on eBay, or even at your local pawn shop (but they won’t give you the best price).

If you consider our example for the US Gold $20 Saint-Gaudens Double Eagle (Almost Uncirculated Condition), which can be purchased for a total of $45 below the melt value with eBay Bucks and credit card rebates, the actual price that you pay comes out to $1,163 ($1,288 List Price – $100 eBay Bucks – $25 Credit Card Rebate at 2% = $1,163 actual price paid).

That same exact coin has a buyback price of $1,238 on Apmex (on 6/28/2017), which is $75 higher than the price that you paid (please note that Apmex buyback prices are based on transactions of $10,000 or more, so you will likely receive less on the sale of a single coin).

The current melt value of the same exact coin is $1,208, and your local coin dealer will usually pay you more than the melt value for a pre-1933 U.S. gold coin, so either way, you can likely make a profit selling this coin shortly after you buy it (depending on the fluctuation of the spot price of gold).

Through this methodology, you can purchase gold coins for less than the current spot price and then sell them for over the spot price, and turn a profit.

This is also a decent method of generating manufactured spending on your credit card in order to rack up your rebates, points, or miles.

However, it is extremely important to remember that the spot price of gold can fluctuate wildly from time to time, so in the time that it takes for your coin to be shipped to you and for you to resell your coin, the spot price may drop and wipe away any profits that you may have made, so you have to be willing to accept that risk.

If you’re willing to take the risk and spend the time to hunt for the Best Gold Coin Deals on eBay, you may be able to turn a profit through buying and selling gold coins.

Gold Terminology To Know

• Gold Ask Price – A gold coin or gold bar’s selling price.

• Gold Bid Price – A gold coin or gold bar’s buyback price.

• Gold Bullion – Gold in the form of coins, bars, or ingots.

• Break Even Price – The percentage gain that a gold coin or gold bar’s bid price must increase to equal the original ask or selling price.

• Gold Melt Value – The gold value of a coin or bar, which is calculated by the gold weight multiplied by the spot price of gold.

• Obverse of Gold Coin – The front or “heads” side of a gold coin.

• Gold Premium – The amount of money charged above a gold coin or gold bar’s melt value.

• Reverse of Gold Coin – The back or “tails” side of a gold coin.

• Gold Spread – The difference between a gold coin or gold bar’s ask (selling) price and its bid (buyback) price.

• Gold Spot Price – The market price paid for gold based upon immediate delivery.

Have you found other ways to buy gold for even less than the spot price? Please share your experiences in the below comments.