Common Mistakes Sellers Make and How to Avoid Them
- GoldsilverJapan
- Sep 22
- 6 min read
(Polishing, Panic Selling, and More)
Selling gold, silver, or collectible coins can be an exciting financial opportunity, especially when prices are high. However, many sellers—especially first-timers—end up making preventable mistakes that reduce their profits or even cause losses. Whether you're downsizing a collection, cashing out an investment, or simply curious about the value of your coins or bullion, it's critical to understand what not to do when selling.
This comprehensive guide explores the most common mistakes sellers make when selling gold, silver, or collectible coins—and how to avoid them. If you’re searching for “Why did I get less than spot?” or “Should I clean my coins before selling?”, this guide is for you.
Why Understanding Seller Mistakes Matters
Gold and silver are tangible stores of wealth. Coins, bullion, and even semi-numismatic items can hold significant value. But unlike stocks or real estate, physical precious metals and coins require a different strategy when it's time to sell.
Avoiding seller pitfalls can mean the difference between maximizing your return or leaving hundreds (or thousands) of dollars on the table. It also helps you build a smarter long-term strategy for future buying and selling decisions.
Mistake 1: Polishing or Cleaning Coins
Why It’s a Problem:
Polishing or cleaning a coin can damage its surface and reduce its value—sometimes by 50% or more. This is especially true for older or collectible coins like Morgan dollars, Peace dollars, or ancient silver/gold pieces.
What You Should Do:
Leave your coins as is. Even if they look dirty or discolored, most dealers and collectors prefer original patina over a shiny but altered surface.
Key Tip:
“Natural toning” on coins is often desirable, especially if it forms attractive colors. Toned coins are sometimes worth more than their untoned counterparts.
Mistake 2: Selling in a Panic During a Market Dip
Why It’s a Problem:
Precious metals markets can be volatile. Selling during a downturn, especially due to panic or fear, can lock in unnecessary losses.
What You Should Do:
Take a breath and look at the long-term trends. Ask yourself:
Do you need the cash urgently?
Could prices rebound in a few months?
Can you wait to sell at a better spot price?
Mistake 3: Not Knowing the Current Spot Price
Why It’s a Problem:
Some sellers walk into a shop or sell online without checking the spot price of gold or silver. This leaves them vulnerable to lowball offers.
What You Should Do:
Before selling, check the live market price. Reputable sites like Kitco, GoldSilverJapan, or APMEX show real-time gold and silver prices.
For example (as of this writing):
Gold Spot Price: $3,700/oz
Silver Spot Price: $42/oz
Even though prices fluctuate, being aware of the market gives you a benchmark to compare offers.
Mistake 4: Ignoring the Dealer Spread
Why It’s a Problem:
Dealers make money by buying below spot and selling above spot. This difference is called the dealer spread.
For example:
Spot price of gold: $3,700
Dealer buys from you at $3,600
Dealer sells at $3,750
This $150 spread is standard, but it can vary widely depending on supply/demand, inventory, and even time of year. Some dealers may also charge additional transaction or testing fees—so always ask upfront.
Mistake 5: Not Shopping Around for Offers
Why It’s a Problem:
Many sellers take the first offer they get. But coin shops, online platforms, and private buyers may offer very different amounts for the same item.
What You Should Do:
Take your time and get at least 3 different quotes. You can even use platforms like:
APMEX
Tanaka Kikinzoku
GoldSilverJapan
Yahoo Auctions Japan
Mercari (for domestic Japanese market)
Comparison shopping gives you leverage and ensures you’re not getting underpaid.
Mistake 6: Selling to Unlicensed Buyers
Why It’s a Problem:
In countries like Japan, selling to a buyer who does not have a Kobutsu-sho license (古物商) is not only risky—it could also be illegal. You may end up dealing with fake buyers, scams, or criminal cases.
What You Should Do:
Always verify the license of a dealer or store. Reputable dealers display their registration clearly, especially if they operate online or have a physical storefront.
Mistake 7: Selling Without Authentication or Appraisal
Why It’s a Problem:
You might have a rare or high-grade coin and not know it. Without professional grading or authentication, dealers will treat it as generic bullion.
What You Should Do:
If you think your coin is rare, collectible, or old (like pre-1933 U.S. gold), consider sending it to a grading service like:
PCGS (Professional Coin Grading Service)
NGC (Numismatic Guaranty Corporation)
A coin graded MS-65 or higher can sell for hundreds more than the same coin in raw condition.
Mistake 8: Listing Items Poorly Online
Why It’s a Problem:
When using online marketplaces like eBay or Mercari, bad photos and vague descriptions result in lower trust and fewer bids.
What You Should Do:
Take clear, high-resolution photos (both sides)
Include weight and purity (ex: 1 oz .999 silver)
Mention if it comes with COA or capsule
State if it’s a limited mintage
Better listings attract serious buyers and higher prices.
Mistake 9: Overestimating the Value of Semi-Numismatics
Why It’s a Problem:
Many newer collectors assume limited-edition coins like Marvel, Disney, or Queen’s Beasts will retain high premiums. But as hype fades, dealers may treat them as basic bullion.
What You Should Do:
Understand that the resale premium disappears unless the coin becomes truly collectible. If you're selling these coins, expect offers close to spot—not what you paid originally.
Mistake 10: Forgetting About Taxes
Why It’s a Problem:
Profits from selling gold or silver may be considered capital gains in many countries. Failing to declare this can create tax issues later.
What You Should Do:
Consult a tax advisor or accountant in your country. Be prepared to show:
Original purchase invoices
Sale receipts
Holding period (short-term vs long-term gains)
Even if you’re not taxed now, good recordkeeping helps in future audits or inheritance cases.
Mistake 11: Not Considering Shipping Risks
Why It’s a Problem:
Selling through mail or online platforms requires secure shipping. Improper packaging or uninsured parcels can lead to losses or disputes.
What You Should Do:
Always:
Use insured, trackable shipping (EMS, Japan Post Registered Mail)
Take photos of the item and package
Require signature upon delivery
Mistake 12: Selling Without Understanding Melt Value
Why It’s a Problem:
Some coins may look fancy or collectible but are valued solely on melt weight. Not knowing this can lead to false price expectations.
What You Should Do:
Weigh your coins, check the purity, and calculate melt value using:
[Weight in grams] x [Purity] x [Current Spot Price per gram]
This helps you understand the minimum your coin is worth.
Mistake 13: Selling Jewelry Without Extracting Bullion
Why It’s a Problem:
Gold jewelry may only be 18K (75% gold), and buyers often melt it down. You may receive significantly less than you expect.
What You Should Do:
Either:
Sell as a piece of jewelry (if it has design or brand value)
Sell to a refiner who pays based on melt value
Mistake 14: Trusting Cash-For-Gold Stores Without Due Diligence
Why It’s a Problem:
Some “we buy gold” shops offer very low payouts, banking on uneducated sellers.
What You Should Do:
Check:
Online reviews
BBB or Japanese equivalent
Whether they are licensed (Kobutsu-sho)
Mistake 15: Selling All at Once Instead of Staggering Sales
Why It’s a Problem:
Markets fluctuate. Selling everything at once during a dip could cost you a lot.
What You Should Do:
If possible, sell in batches over several weeks or months. This helps you average out market fluctuations.
Final Thoughts: Smarter Selling = More Profit
Avoiding common seller mistakes means doing just a few simple things right:
Don’t polish your coins.
Know the spot price.
Get multiple offers.
Avoid panic sales.
Choose licensed and reputable buyers.
Whether you're a collector liquidating a few coins or an investor selling off bars of gold, these strategies will help you maximize returns and minimize regrets.
FAQ Section
Here are some real-world questions people ask:
Should I clean coins before selling them?No. Cleaning coins reduces value.
What is the dealer spread?It’s the difference between buy and sell prices.
How can I check if a dealer is licensed in Japan?Look for the 古物商 license (Kobutsu-sho).
Can I sell coins on Mercari or Yahoo Japan?Yes, but check the platform rules and buyer protections.
Do polished coins lose value?Yes, often significantly.
Should I sell my gold all at once?Not necessarily. Staggering your sales helps hedge risk.
Are modern collectible coins worth more over time?Not always. Many lose their premium.
Do I pay taxes when I sell gold or silver?Possibly. Consult a tax advisor.
Should I get my coin graded?Only if you suspect it’s rare or high-grade.
Is toning bad on silver coins?Not at all—some toning increases value.
What’s the best place to sell bullion in Japan?Licensed dealers like Tanaka Kikinzoku or GoldSilverJapan.
Do dealers pay spot price?Usually slightly below, depending on spread.
Can I negotiate the offer from a dealer?Yes, especially if you have multiple offers.
What’s better—private buyer or dealer?Both have pros/cons. Dealers are safer. Private buyers may offer more.
Do coin shops accept jewelry?Sometimes, but refiners may offer more.
How can I sell coins anonymously?This varies by country—Japan requires ID.
Do gold coins have resale value beyond melt?Yes, especially pre-1933 or graded coins.
Is silver harder to sell than gold?No, but the value per piece is lower, so shipping/storage matters more.
What’s the most common mistake?Polishing coins or selling without checking spot price.
Where can I track live metal prices?Use Kitco, GoldSilverJapan, APMEX, or Tanaka.
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