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.

Play Video

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.

Read More

Investing In Gold In 2023: Quotation And Forecasts In 10 Years

Throughout history, gold has been used as a tool for bartering or trading.

The first extractions by man in North Africa, Mesopotamia, the Indus valley, and the eastern part of the Mediterranean date back to around 6000 years ago.

The yellow metal has always been highly valued for its unique properties. The oldest hoard dates back to 4,600 BC, discovered in a Bulgarian burial site in Varna.

Many countries used gold and silver coins as currency until the last century.

Some of the topmost largest gold reserves today are located in the United States, Germany, the International Monetary Fund, and the Bank of Italy, with almost 2,500 tons.

Gold marked an important low in December 2015 at 1063 dollars. This level has never been reached since then. At the same time, the first bullish phase, completed in 2017, made it possible to formulate a long-term extrapolation (Elliott-Fibonacci theory) which saw a target of 1980/1985. The target in question was not only reached in 2020, i.e., during the pandemic but even temporarily exceeded, allowing a maximum to be reached in 2070.

After the first correction, which took place in 2021 with a minimum of 1650, in February 2022, the photocopy seen in 2020 was repeated due to the Russian invasion of Ukraine. Again, once the maximum of 2070 had been equaled, gold prices fell until they slowly approached the minimum of 1650 without calling it into question.

In light of what we have seen since 2020, we can safely say that gold has been moving for over two years, within a lateral context, well between 2070 (important double top) and 1650. This last level corresponded exactly to the 38.20% rise that began in December 2015. Therefore, the correction from the highs respected a very important point according to the Elliott-Fibonacci theory.

By applying Gann’s theory to both the long cycle (bullish since 2015) and the medium cycle (sideways since 2020), we can extrapolate the presence of important set-ups. In technical analysis, the set-ups are time levels with a high probability of a “reset” of the trend.

Well: between July 25th and August 15th, we witnessed the presence of two very close set-ups, on which we currently record the formation of a minimum period. This would suggest that the lateral movement that began in 2020 is close to ending to give way to a new phase.

How Much Is Gold Worth In Real Terms?

According to the calculations we made in 2019 based on historical inflation dynamics, since it was quoted in dollars, gold expressed a real theoretical value of 1430. Today, adjusting this price to the Consumer Price Index dynamics over the past three years, the real theoretical value of gold stands at 1650, which coincidentally corresponds to the low side of the sideways movement of the last two years.

The market is valuing gold correctly and is careful not to sell it below this threshold when a sharp devaluation of the currency’s purchasing power (inflation) is impending. At the same time, there is less and less certainty regarding the economic scenario that awaits us from here to the next two or three years.

In the past, gold has shown that it fluctuates around the real value within a percentage range of +10 and -10, with maximum peaks of +30 and -30 in truly exceptional cases, which, due to the nature of the term itself, returned very quickly. Therefore, if we apply the historical average range, the current range is between 1485 and 1815.

Just in the vicinity of 1815, the maximums of the 200-day average were seen, which began a downward slope from July. In reality, the maximum of the average in 200 days was 1847, confirming how gold prices in the last two years have shown an overvaluation above the historical average.

But What Will Be The Real Value Of Gold In Ten Years?

Answering this question is challenging, but we still need to make sensible calculations based on a rather reliable parameter, namely the average expected 10-year inflation rate.

Through this parameter, we can extrapolate a real theoretical value of gold at ten years of around 2130. Therefore the range between the minimum and maximum at ten years should be indicated in 2340/1915.

Returning to the technical analysis, we can observe how the quotations are moving below the 200-day average, which today moves to 1838, representing the most important resistance. At the same time, the scenario of both short and long-term averages certifies the presence of a decidedly weak picture strengthened by indicators moving in bearish territory.

Another element to be considered is the comparative strength with the SP500 index.

Since gold is priced in dollars, the performance of ETCs and ETFs depends on the following:

  • the price movement of the underlying;

  • Euro/Dollar exchange.

Hedged ETFs and ETCs are also listed on BorsaItaliana, i.e., hedged against exchange rate risk. When the US dollar appreciates against the Euro, you gain. Conversely, if the Euro appreciates against the Dollar, the yield decreases.

Finally, it is possible to invest in shares of companies involved in mining yellow metal.

In this case, the risks are greater since two variables come into play: inherent volatility and business factors. We refer to the following:

  • the solidity of the company;

  • the geographic spread of mining projects;

  • the company’s costs, margins, profitability, balance sheet strength, and debt;

  • management quality etc.

Even though 2023 has been an extremely difficult year for both the equity and bond markets, gold has worse comparative strength to date. Indeed, after holding up better until June 2022, the picture of this indicator seems to have reversed the scenario, threatening clouds on the horizon.

This should make us think about the need to rush to buy gold now.

The adverse factor that is present today must simply be sought in the excessively high level of interest rates, especially in the short term.

According to expected average inflation, buying gold could generate a negative real interest rate. This would be practically even more likely if the investment time horizon were 12 months.

Therefore, in the current situation, it is important to choose the right time to buy gold to minimize the risks.

In fact, in the event of a restrictive monetary policy and declining inflation, gold could begin to express an undervaluation, thus also questioning the stability of 1650, which, in our opinion, remains a valid area to accumulate positions.

Moreover, even if, hypothetically, today, gold offers slightly negative real interest rates, it still protects us from a sudden change of scenario, such as an acceleration of inflation or a financial crisis, for example.

The market these days is pricing gold correctly, in the sense that we are not in the presence of excessive or undervaluations. The neutral weight within a portfolio should be around 3%. For a long-term investor, this is sufficient to consider purchase interventions with a view to prudent diversification.

However, particularly high rates, especially in the short term, could push operators to create undervaluations in terms of price in the coming months. This is a good reason at the moment to stay within the neutrality threshold, i.e., 3%.

Any Increases Should Be Considered In Two Specific Cases:

  1. Reaching area 1520/1500 In this case, an undervaluation would be created capable of abundantly repaying the investor in the long term.

  2. Breaking of 1850. This signal would only come in the event of variables such as a new acceleration in inflation or an economic-financial upheaval capable of destabilizing the picture.

To invest in gold, we favorably see ETFs that own physical gold (Physical Gold ETFs, to give an example).

Far riskier instead to invest in gold mines, i.e., companies that extract gold. These, in fact, in addition to presenting uncertainties in terms of extraction capacity, are negatively affected by the rise in energy materials, heavily used during their activity. In practice, we are witnessing a sharp decrease in margins, placing them in a highly vulnerable situation.

Read More

Why Is Gold Called A Protective Asset?

First, gold is not “money,” unlike stocks and bonds. In addition, the gold market is designed to soar as the world situation and economy become unstable. Therefore, no matter how unstable the world situation is, the value of gold itself will not change.

In the past, the market price soared sharply during the oil crisis, the Great East Japan Earthquake, and the terrorist attacks in the United States.

Conversely, when world peace comes, the price of gold will fall. However, even if it goes down, unlike stocks, you will only lose money if you sell gold. If you wait for the market price to rise again and sell it when it rises, you won’t have to worry about taking so much risk.

Recently, the impact of the new coronavirus that threatened the world in 2020 has caused stock and real estate prices to drop significantly. Many companies were in financial trouble, and investors must have been very embarrassed. However, it was “gold” that was the only winner there. Instead of falling, the price of gold rose significantly.

Once you buy gold, you wait for the market to rise, so you don’t have to do anything in particular. Even if you are new to investing, you can manage your assets easily.

However, gold does not generate monthly profits, so it is unsuitable for those looking for a stable income.

Think Of It As A Defensive Asset To Prepare For When Something Happens.

If you own stocks and real estate, you can earn profit every month. Many people live on that alone, and depending on the operation, you will be able to obtain a large number of assets. Another method is to convert a 401K to physical gold. This will be explained in a further post!

Unfortunately, Gold does not generate this kind of monthly profit. It will be difficult to make a living with money alone, as assets will not increase just by owning them. Gold investment is recommended as one method, but please consider it a reserve asset.

Steadily Create Assets With Pure Gold Reserves.

If you have a large budget, it is also recommended to consider purchasing gold bars. However, it may be difficult for some people to prepare many funds.

You can start from 1000 yen per month if you are a pure gold reserve. Since it is a system that automatically purchases and accumulates a fixed amount of pure gold every month, almost no knowledge about investment is required.

After opening an account, pure gold will be purchased automatically by leaving it as it is. However, you need to determine when to sell, so keep an eye out for information on market fluctuations.

You can set the reserve amount yourself to save steadily within a reasonable range. This is a great investment option for those who want to grow their wealth over the long term.

Gold has a common value worldwide, and the value itself will never go down. Since it is also strong in the world situation, there is a big advantage in owning it as a stable asset.

There are no major drawbacks other than being unable to generate monthly profits. If you do not make a mistake in the timing of the trading transaction, you will not suffer a big disadvantage.

Read More