How Do Spread Percentages Work Out In Real Pounds And Pence
If you take 100 grams of gold this is what the difference in spread could look like:
As you can see from the example above, which for BullionVault includes the 0.5% commission charged when you buy and when you sell, you will pay the most and receive the least back if you buy a 100g gold bar compared with 100g purchased and vaulted using BullionVault.
Please don’t take our word for it. Check the prices on any website selling bullion and compare their spreads.
Then compare our live order board prices 24/7. Remember that a round trip, buying and then selling, will also carry a dealing commission of 0.5% each side.
How To Buy And Keep Gold Coins
If you decide to buy gold coins, get it from a reputable dealer or financial institution. We wouldnt buy gold coins on Craigslist, but thats just us.
If you buy gold coins from individuals or from anyone else youre not sure of, have the gold coins authenticity verified first. You dont want a collection of gold-plated lead.
U.S. gold coins come in one, one-half, one-quarter, and one-tenth ounce denominations. You pay a premium over the price per ounce when you buy gold coins, which is how the dealer makes a profit.
You may pay a higher premium if you buy gold coins less than one ounce each. You should generally buy bullion coins, such as the American Gold Eagle, Canadian Gold Maple Leaf, or South African Krugerrand.
Collectors coins, called numismatic coins, are a different game than bullion gold coins. They can sell at a very high premium, and their prices are dependent on more factors.
Unless you are very knowledgeable about collectors coins, stick with bullion coins.
Once you have the coins, you may be tempted to run the coins through your hands, like Ebenezer Scrooge.
But of course you wont you should leave coins in their cases, away from scratches and fingerprints.
Dont even think of hiding gold in your house, unless you have a safe. Thieves know where to look, or they can find it with a metal detector.
For very little money, you can rent a safe at a bank for your gold and other valuables.
Ways To Test Gold And Silver
Acid Testing
One major method used in testing gold and silver is acid testing.
Acid testing is one of the most accurate methods for testing gold because it enables you to do a âdestructiveâ test to drill into the layers of a piece to ensure it is solid gold throughout.
The acid test has not changed significantly in many years and serves as a very affordable method of testing gold and silver.
Electronic Testing
Another method of testing precious metals uses electronic methods. The electronic testing approach can appeal to people who donât want to deal with acids in the testing process.
However, one thing to be cautious about with these testers is that they are susceptible at times to being fooled by gold-layered pieces, classifying them as solid gold when they are not.
In these cases, a destructive test conducted with acid can be more definitive.
XRF
The most advanced portable electronic gold tester is an XRF.
These battery-operated testers contain an x-ray tube and shoot a small x-ray beam at the piece being tested.
The beam interacts with the elements in the piece and the machine reads the results.
These very powerful testers â at a cost of around $17,000 â are most suitable for those who sell gold in high volumes.
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Cash For Golds Price For Gold Calculator
If you know some of the details of the gold you have to sell, you can get a fairly accurate idea of how much you might get paid by Cash for Gold USA.
The front page of the website has a gold calculator so that you can get an estimate based on todays price of gold on the spot market. Its about 2/3rds of the way down on the right side. See it outlined in red below:
If you know the weight and karats of your gold, you can get an instant price . Of course, the price is not binding and does not reflect the actual payout. Youll have to submit your gold for an actual appraisal before a dollar amount can be locked in.
Get The Highest Offers For Your Gold
We know getting the most Cash for Gold is your top priority when looking to sell your unused gold. At sellyourgold.com we pride ourselves in providing the highest payouts for your gold, silver, platinum and diamonds.
How can we get you the most cash for your gold? We do not have a store front location so unlike jewelry stores or pawn shops we don’t have to worry about retail overhead costs, paying store employees or other cost that go into running a store front business.
We guarantee the highest offers so much so that if you’re able to find a higher offer from any competitor, we will match it. Start getting cash for your gold today!
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Testing Gold Silver And Diamonds
There are two major things you need to know to purchase and sell gold and silver:
Typically, when people try to get started in the business of buying and selling gold, they run into two major problems.
First, they donât feel confident in their ability to test the gold, which leads to the second issue: they donât take any action.
Wallace identifies several methods to test gold and silver to determine their purity and ensure the items are genuine.
Gaining knowledge of these testing methods can boost your confidence in your ability to identify deals that will enable you to sell gold at a profit after you acquire it.
Next, letâs explore ways to test gold and silver.
How To Sell Your Gold
There are several things youll want to keep in mind when youre selling gold jewelry or other gold items. Our general recommendations include:
- Try to sell at the right time. Gold generally increases in price when the stock market and other asset classes arent doing so well, meaning youll usually get the best price when the economy is weak. Although gold prices are at record highs right now, if you find yourself with gold jewelry to sell at a time when prices are low and you can afford to wait, you might get a better price by holding on to your gold items until the right time to sell.
- Dont be afraid to negotiate. Whether youre selling online or to a local pawn shop, it never hurts to engage in a little friendly negotiation. If you think that the amount youre being offered isnt enough, try asking for more. As long as you keep it professional and ask for a reasonable price, theres a possibility that youll receive a counter-offer thats higher than the amount you were offered in the first place.
- Choose the best option for the type of gold item you have. As we covered above, its always best to choose a merchant that specializes in buying the type of gold items you have for sale. If youre selling pre-owned gold jewelry, choose a buyer that specializes in jewelry, like Abe Mor. If youre selling a brand name gold item, choose a company that will purchase it based on its market value, not just the value of its gold content.
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Glossary Of Gold Terms
You may already know a fair amount about gold, but to fill in any holes you might have, heres a glossary of terms you should get familiar with when looking to sell your gold.
Ask and Bid Prices. The ask price is the price a precious metals dealer has set for a bar or coin, also known as the selling price. The bid price is how much a dealer is willing to pay to purchase or buy back a coin or bar.
Assay. A test to determine the fineness and weight of a precious metal.
Avoirdupois. The weighting system used for commodities, except precious metals, stones, gunpowder, and drugs. For example, corn, wheat, meat and other common items use the 16 ounces equals one pound unit of measurement. One avoirdupois ounce equals 28.35 grams or 437.50 grains.
Metals stones, gunpowder and drugs are weighted according to a Troy ounce. It is heavier than an avoirdupois ounce. One troy ounce equals 1.09714286 avoirdupois ounces. One troy ounce equals 31.1035 grams
Comex. Located in New York City, Comex is a division of the New York Mercantile Exchange and one of the worlds major commodities futures exchanges where gold and silver are traded.
Fine weight. The precious metallic weight of a coin, ingot, or bar, as opposed to the items gross weight. The gross weight also includes other alloys. For example, a 1-oz Gold Eagle has a fine weight of one troy ounce but a gross weight of 1.0909 troy ounces. The .0909 troy ounces are composed of other alloys.
- Luster
- Color
- Preservation
How Much Gold Is There
Gold is actually quite plentiful in nature but is difficult to extract. For example, seawater contains gold — but in such small quantities it would cost more to extract than the gold would be worth. So there is a big difference between the availability of gold and how much gold there is in the world. The World Gold Council estimates that there are about 190,000 metric tons of gold above ground being used today and roughly 54,000 metric tons of gold that can be economically extracted from the Earth using current technology. Advances in extraction methods or materially higher gold prices could shift that number. Gold has been discovered near undersea thermal vents in quantities that suggest it might be worth extracting if prices rose high enough.
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How To Buy Gold
Gold can be an attractive investment for those who wish to protect themselves from the volatility paper currency and stocks experience. However, the process of acquiring gold is a bit more opaque than simply heading to an ATM. You need to decide what kind of gold you want to buy, find a reputable gold dealer and make sure youre storing your gold safely.
Read on to learn why you may want to invest in gold in the first place, how to purchase gold and what the different kinds of gold investments can look like.
Where Is The Best Place To Sell Gold Bullion
There are many places you can sell gold bullion. The trick is finding a gold buyer that will give you the best price for your gold. People often sell gold bullion on eBay. If you go this route, dont expect to get the same prices you would see from an authorized dealer.
Authorized dealers are probably the safest route for sellers. You can either find a dealer locally or go online and expand your search. Again, we recommend Cash for Gold USA as your best option.
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What Is Gold Worth
Gold is a precious metal, but its also a commonly traded commodity. The market price for gold changes every single day.
For example, gold cost $1,819 an ounce on February 12, 2021.
To know what gold is worth, youll have to look up that days prices. You can easily do this with a quick internet search.
The price that you see quoted is the price for pure gold. Not all gold jewelry is made of pure gold. Gold is a very soft metal and can easily get damaged.
It is often mixed with other metals, such as copper and silver. This reduces the purity of the gold, reducing its value.
Gold purity is measured in karats. Common karat ratings and their associated purities are:
- 24 karat 99.9% pure
- 12 karat 50% pure
- 6 karat 25% pure
If you have four ounces of 6 karat gold, you only have one ounce of real gold.
The other three ounces are other metals that are alloyed with the gold, so the price you can get for the gold will reflect how much of its weight is pure gold.
Thinking Of Investing In Physical Gold Consider The Pros And Cons First
Pros
- Protect your wealth. Gold has long been seen as a reliable store of value that is largely unaffected by the factors that influence other investments. For example, when share prices plummet, the price of gold usually rises as investors look for somewhere safe to park their money.
- Diversify your portfolio. Golds safe haven status also makes it well worth considering if youre looking to diversify your investment portfolio and protect your overall financial position during periods of market downturn.
- Easy to buy. There are many dealers who specialize in buying and selling gold, so getting your hands on this precious metal may be easier than you think.
- Its a tangible asset. If global financial systems were to somehow collapse, such as what happened during the Great Depression, owning gold as a physical asset offers financial protection. Gold also cant be destroyed by fire or water damage and wont corrode over time.
- Liquid. Gold is fairly easy to convert to cash whenever you need to do so. However, it can be easier to sell a gold stock or ETF than it is to sell a bar of gold.
Cons
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Best Online Gold Buyer: Cash For Gold Usa
In a highly competitive online gold buying world, Cash for Gold USA is the best online broker for several reasons:
You get paid fast. Within 24 hours after an appraisal and accepting the offer sent to you, Cash for Gold USA will send you a check, or pay you by bank wire or PayPal.
Not only can you request shipping free of charge for your gold items, but they are also insured every step of the way via USPS or FedEx. Standard coverage is $5,000 for FedEx, but additional insurance is available for items valued at up to $100,000.
Cash for Gold USA is established and highly reputable. In fact, their parent company has an A+ rating from the Better Business Bureau. The site has served more than 250,000 customers and paid out more than $53 million since 2005.
Your transaction is risk-free, meaning you can back out at any time if you dont like the price youre offered. If you make that decision after you ship your gold, your gold items will be sent back to you at no charge.
The site will buy kinds of gold, silver and platinum items, including broken jewelry and dental scrap. The material is based on weight and purity, not the condition. In addition, the site also buys diamonds and silver.
Question : When Should You Buy Gold
As with all investments, the general rule of buy low, sell high applies to gold, whether in coin, bullion or stock form. To know the right time to buy, research the type of gold you want to buy and keep your eye on the market.
Since gold tends to perform well when the economy is in a recession, most people buy gold as a type of financial insurance policy to hedge their bets against the value of the dollar in the market. As a hard asset, gold holds its value even during times of inflation. For instance, the early 1970s would have been a great year to buy gold its value increased from $35 per ounce in 1971 to $180 per ounce in 1974.
There are two main reasons people buy physical gold: as insurance and as an investment. People who are concerned about the recent economic crisis tend to view their ownership of precious metals as an insurance policy: As long as you have physical gold or silver to sell or trade, you will never be broke, even if the economy collapses. It is relatively easy to buy a gold bar, and once you purchase it, you dont need to do anything but store it.
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Check Businesses Before Selling Your Gold
And as long as were discussing precautions, with potentially significant amounts of money changing hands, you want to do at least as much due diligence as if you were, say, trading in a car. In addition to professional associations and recommendations, you can check with the Better Business Bureau to find out if there are complaints against a business you’re considering, and if so, how they were resolved.
Its smart to weigh your gold before taking it to a buyer — a kitchen or postal scale should give you a reasonable idea of the weight of your items. And make sure that when the buyer is weighing the gold, you pay attention to the procedure.
Liberty Gold And Silver
Liberty Gold and Silver is a Portland, Oregon-based precious metals buyer. You can sell gold, silver, platinum, palladium and more all at the same time.
You can request a free quote and shipping label. Liberty Gold and Silver offers shipping insurance up to $1,000.
If youre selling more than $1,000 in metal, youll need to ship and insure the gold yourself, though the company will reimburse you for the cost once it receives your shipment.
You can obtain payment by check in the mail or a wire transfer to your bank account. There is a small fee for wire transfers.
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