When And How To Resell Gold: The Right Time To Do It

You have gold to spare and questions about how to get started. How do you get the best price? What are the dangers to avoid? How can you make it a smooth process? And then, when is the right time to resell gold?

Through this article, we want to provide you with all the resources to make this process easier. We can help you identify some key points about how and when to sell your gold and what to look for in a trusted buyer.

Decide The Right Time To Resell The Gold.

If you inherited or met your gold in some other way, ask yourself if you’re ready to part with your precious metals and if it’s the right time to let go of something that might be sentimental in the future.

In any case, the number one reason people sell their gold is to liquidate their investment. It might be closing down a house, paying for your child’s college tuition, or just wanting to show yourself or your family a splurge. Whatever your reasons, the right time is whenever you say it is.

How Much To Resell Gold?

Most bullion dealers will offer around 95% of the spot price, which will vary depending on market conditions. 

You may get a higher resale premium if you have much to sell or products that the reseller is in short supply. Remember that the retailer would multiply the gold content by the current spot price for a piece of jewelry. 

So, for jewelry that contains 10 ounces of gold but is 91.6% pure, the dealer would pay you for 9.16 ounces. Pawnshops will offer the lowest yield, sometimes less than half the bullion content.

The size of the transaction will also play a role in how you want to sell. Entering a pawn shop with a significant amount of precious metals leaves you vulnerable to burglary or assault.

It’s less of a concern when you’re selling $1,500 worth of gold, but this is a serious consideration for investors with $100,000 or more in precious metal investments.

It doesn’t make sense to take a bag worth half a million dollars to a local pawn shop. In these cases, privacy and security need to be more serious considerations.

Know Your Gold

It is important to ensure that the purchase you have chosen is from a reputable dealer in the precious metals industry. Less-than-tasty characters can be encountered, known to be aggressive and deceptive when negotiating. And even more so when they feel the vendor has limited industry knowledge.

Here are some points you need to be aware of to make sure you get a fair price:

Bullion Vs. Collectible

The first thing to find out to resell gold and get a fair price is whether you are holding a bar or a collector’s item.

Public Vs. Private

The second thing you should look for is whether you have government-backed ( sovereign ) currency or private mint bullion. The value and buyback prices may differ depending on what you have.

Sovereign mints are sometimes referred to as government mints or national mints. Products produced by sovereign mints are legal tender in that country. Often, a face value is associated with the product and an official fiat currency status.

Private mints are privately owned and do not produce legal tender bullion. With private mints, they make products with their own brand or design, purity, and metal content.

Ingots Vs. Coins

The third characteristic to identify is whether you have bars or coins. Normally the retail purchase price of coins and rounds is higher than that of bars.

Since the value of gold is measured by weight (troy ounces in the US), the price per ounce may be higher for a gold coin, but the total value contained in a bar may be much higher as the bars tend to be purchased in higher weights.

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Learn About The Most Popular Types Of Gold To Sell

Many gold products can be sold for cash. But if you’re a novice or intermediate seller, we’ve compiled a list here that describes and demonstrates some of the most popular gold, coins, and bullion items sold to dealers:

Golden American Eagles

The American Eagle coin comes in various denominations, designs, and metals. The US Mint produces American Eagles coins.

Two American icons, the eagle, an unshakable representation of the United States, and Lady Liberty, have appeared on American Eagles since their first minting in 1986. The Gold Eagle takes its design from the 1907 Saint-Gaudens Gold Double Eagle.

Buffalo Gold Coins

Buffalo gold coins are based on the 1913 Buffalo Nickel designed by famed sculptor James Earle Fraser. This classic design celebrates Native American tribes and the majestic buffalo.

The Gold Buffalo coin was the first 1 oz gold coin from the United States Mint to contain .9999 fine gold and has been popular since its introduction in 2006. Fraser’s design has also been used for the Silver Buffalo, released in 2001, allowing investors to add value to their portfolio while also owning a small piece of American history.

Gold Bars

Gold bars generally match sovereign coins in content and purity but cost less than the spot price of gold than gold coins because they are usually privately minted.

Each gold bar is stamped with its exact gold weight, fineness, and serial number for added security.

European Gold Coins

European gold coins can also be purchased in the United States, but collectors may have obtained them overseas. So many types of European gold have become family histories, passed down from generation to generation.

In the United States, European gold coins are common to soldiers or contractors stationed overseas and purchased or obtained as mementos. They were used as currency from the 1800s to the 1930s.

Buying Low And Selling Gold High?

Most investors aim to buy low and sell high. This mantra underpins not only stocks and bonds, but nearly every other commodity and traded asset. After all, that’s how you make a profit, right? So is it important for precious metals investors and buyers to consider when they should sell their gold and silver?

Timing entry or exit into any market can be extremely lucrative. However, as history has proven time and time again, this is usually a silly errand. Any savvy investor will point out that focusing on the fundamentals of any market will consistently deliver excellent returns.

But remember: there’s never a perfect time to sell gold or silver. And likewise, there’s never a perfect time to buy.

Before Reselling The Gold, Find A Trusted Buyer.

Once you know your gold, you must decide where to sell it. We recommend that you find a reputable online or physical retailer.

You may also wonder if a local pawn shop or coin store is the most convenient place to go. This brings the benefit of talking to someone in person and walking out with a check that day. But chances are they will try to belittle or intimidate you into agreeing to a lower price than what your precious metals are worth.

Sale Of Gold And Silver Bars Online

Selling precious metals to an online dealer can be a more efficient way to offload some of your bullion. Online bullion dealers typically offer better prices than local pawn shops or coin shops because their operating expenses are usually less significant than a physical store.

Making It Easier (And Safer) To Buy And Sell Precious Metals

As we’ve discussed, you want your transaction to be safe, convenient, and fair. The easiest way to ensure this is to shop online from the safety of your home and ship your precious metals to a reputable depot. This way, you never expose yourself to the possibility of assault and drastically decrease the chance of burglary or theft.

When you make a transaction online, you don’t even have to reveal to anyone that you’ve invested – it’s completely anonymous. And then, when you’re ready to sell, you can notify your storage company to sell your metals at an agreed-upon price.

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