Frequently Asked Questions About How To Buy Gold
How do I store my gold?
Once youve purchased your gold, youll also need to find a safe place to store it. There are several options to consider, including the following:
- Bullion dealers. Many gold dealers will also offer a storage service where you can keep your gold bars or coins for a fee, so ask about the storage options available when you make your purchase.
- Safety deposit boxes. You can rent a safety deposit box at a bank to securely store your gold bullion.
- Secure vault storage. For high-level security, you may want to research vault storage companies near you and the storage options they offer.
- At home. You can also choose to store your gold at home. This obviously may not be as secure as some other options, so you may want to get a home safe installed. Youll also need to update your home and contents insurance to make sure your precious metal is covered by your policy .
Do banks sell gold?
Some banks do sell gold to customers, but many do not. Canadas Big 5 banks TD Canada Trust, CIBC, BMO, RBC and Scotiabank all sell gold and other precious metals. If youre interested in buying from a bank, talk a local bank representative to find out what your options are, and make sure your investment comes with a secure way of storing your precious metals. Youre also more likely to get a better price if you are a customer of the bank youre buying gold from.
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Estimate Your Golds Value
Before doing anything else, take the time to estimate the value of your gold. However, this can be a bit of a complicated process because you have to account for the purity of your gold and golds changing value.
To start, sort your gold by purity, grouping each karat level. Once youve organized everything, weigh each group on its own, then multiply the weight you get by the purity of gold it contains.
You can put together a table like this to help with the process:
- 24 karat 99.9% pure
Ounce you know how much pure gold you have, you can multiply the weight by the current value of gold.
While youll have trouble getting the full value of your gold from most buyers, this will give you a ballpark measure of the price that you should get.
For example, if you have 14 ounces of gold and gold is selling for $1,300 per ounce, youll know that your metal is worth $18,200.
If you get an offer for $4,000, youll know its a bad deal. If the offer is for $16,000, its much more reasonable.
If Selling Gold to Be Melted Down, Make Sure It Is Not Worth More As-Is
If you plan to sell gold to a gold dealer that is primarily interested in its value as a precious metal, make sure that any jewelry or other gold items youre selling arent worth more than the gold they contain.
Antique jewelry can be worth far more than the gold it contains due to its historical or artistic value, and you might get a better deal from a specialized buyer of antique goods.
Also Check: How Many Pounds Is A Brick Of Gold
What Is Gold Filled
Gold-filled jewelry is constructed in two or three layers: The core metal is brass, and a gold alloy is then bonded to one or both surfaces of the brass core with heat and pressure. Gold-filled jewelry contains a much thicker layer of gold than plated or vermeil items and will hold up better with wear comparatively.
Are Gold Transactions Reported To The Irs
Yes, you generally need to report gold transactions to the IRS. However, tax liabilities on the sale of precious metals like gold and silver are not due the instant that theyre sold. Instead, sales of physical gold or silver need to be reported on Schedule D of Form 1040 at your next tax return.
Specifically, the Schedule D form is what most people use to report capital gains and losses that result from the sale or trade of certain property during the year. This includes things like stocks, bonds, real estate investment trusts , and collectibles like gold.
It also depends on how much gold youre selling and what kind.
If you sell gold or silver coins for more than $1,000 worth in one year then Form 1099-B needs to be submitted at the time of sale.
Items that require this filing include U.S 90% Silver Dimes , and more than 25 pieces of one-ounce coins of Gold Maple Leaf, Gold Krugerrand, and gold Mexican onza coins. This includes coins and bars measuring 1 kilogram or 1000 troy ounces in weight respectively, along with any gold or silver item that has more than 50% pure gold or silver content.
Form 1099-B is a form used by individuals who have sold an asset valued greater than $1000 which contains metal . The person selling such assets is required under tax law to file said document within 30 days of the sale.
Read Also: Do Diamonds Look Better In White Or Yellow Gold
Why Investors Like Gold
Gold has a proven track record for returns, liquidity, and low correlations, making it a highly effective diversifier, says Juan Carlos Artigas, director of investment research at the World Gold Council.
These qualities are especially important for investors:
- Returns: Gold has outperformed stocks and bonds over certain stretches, though it doesnt always beat them.
- Liquidity: If youre buying certain kinds of gold-based assets, you can readily convert them to cash.
- Low correlations: Gold often performs differently from stocks and bonds, meaning when they go up, gold may go down or vice versa.
In addition, gold offers other potential advantages:
- Diversification: Because gold is generally not highly correlated to other assets, it can help diversify portfolios, meaning the overall portfolio is less volatile.
- Defensive store of value: Investors often retreat to gold when they perceive threats to the economy, making it a defensive investment.
Those are a few of the major benefits of gold, but the investment like all investments is not without risks and drawbacks.
While gold performs well sometimes, its not always clear when to purchase it. Since gold by itself doesnt produce cash flow, its difficult to determine when its cheap. Thats not the case with stocks, where there are clearer signals based on the companys earnings.
Selling Gold & Silver Jewelry
The big factor here is if youre selling bullion jewelry or costume jewelry.
Bullion jewelry are pieces that contain nothing but gold. Some 22-karat pieces contain an alloy to give it added strength, but its content is otherwise nothing but real gold. This signals to buyers that if they want an adornment that will also have resell value tied to the price of gold, then they want to buy bullion jewelry.
In contrast, costume jewelry contains many other items besides gold or silver . Some costume jewelry can be very valuable of course, but resale is usually not as high because 1) the value is more subjective, and 2) the retail markup was initially very high.
Browse our selection of gold jewelry
Read Also: How Much Is A Gold Brick Worth
Alternatives To Selling Gold
There are a lot of reasons that you might wish to sell your gold. Maybe you realize that you own gold you dont need and want to cash it in for a large purchase or other investments.
Or you might have inherited the gold and dont want to deal with storing it.
If youre selling gold because youre in financial trouble and need help making ends meet, there might be alternatives.
Many gold buyers wont give you the actual value of your gold if youre desperate to sell it. And knowing the other options can provide you with time to get the full amount for your precious metals.
It can also help you avoid selling jewelry or other gold with sentimental value.
If youre experiencing a financial emergency or are facing an unexpected bill, a personal loan may be a good way to get the money that you need. Check out thislist of the top personal loan companies.
You will have to pay the loan back, and youll pay interest on the money that you borrow, but it can save you from selling gold that you dont really want to sell. It can also buy you time to make sure you can get the full value of your gold.
While borrowing money shouldnt be your first resort, there are some situations where it makes the most sense, especially when the alternative is selling something for far less than its worth.
The Next Screenshot Is The Itemized Transaction Breakdown On The Investment Direction Form
- Your gold company will typically email or fax you the document, although they can send it via traditional mail as well.
- Upon receipt, youll sign the Investment Direction form and return it to your dealer.
- Next, contact them to make sure they received your document safely and get a guarantee that your pricing is locked in.
- They will then submit your document to the IRA custodian for processing.
- The IRA custodian will request the transfer of the precious metals held in your account to your dealers account at the depository.
- Once your dealer receives the precious metals, they will wire the proceeds to your IRA account. Typically within 48 hours.
- You are now free to take a cash distribution, purchase a different asset or transfer your IRA funds to another custodian if you choose.
Note that the best gold IRA companies will always assist with the process should you accept their help.
In addition to the steps outlined above, here are four things to consider before accepting a liquidation quote for your precious metals IRA:
Below is a screenshot of the Designated Representative option on the application.
When you sell precious metals with the Certified Gold Exchange, we check pricing with over three thousand gold bullion dealers to find the highest buyback of the day. And then we beat that price. Additionally, we send you a link to the highest gold or silver bids, so you have complete confidence you are receiving the highest price of the day for your sale.
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What If I Dont Want To Store My Gold Offshore
If you are just starting out learning how to buy and sell gold, storing that gold offshore may sound a bit intimidating. As with all things, there are ways to take baby steps into the offshore world.
BullionStar is a great way to take baby steps into offshore gold storage. Like all good gold and silver dealers, allows you to retrieve any gold and silver you hold in their vault, with the exception of unallocated silver and gold grams which trade at low spreads.
Any bullion coins or bars can be picked up by walking into their retail store and asking for your stuff out of the vault.
Of course, you wouldnt be able to avail yourself of their zero-spread buy-back policy with your gold bars in your possession, but if for some reason Singapore decides to become communist tomorrow, you could retrieve your stuff.
Weve discussed many times why I believe offshore gold storage is an important part of protecting your assets. After all, buying gold is part of any good asset protection strategy.
To learn more about BullionStars zero-spread gold bars, and to compare their premium on your favorite gold or silver coins, you can learn more here.
And if you are looking to invest more than six figures in gold and other bullion, reach out to our team and we can help you get the kind of high-level service you need.
Investing In Gold Mining Stocks
Just as the movement of crude oil price impacts share prices of oil refiners/marketers, the changes in gold prices impact shares of gold mining companies.
If gold prices rise, the miner’s profit will rise. Its revenue will also go up if production is increased. A double whammy.
However, like any equity investment, especially individual stocks, there is high volatility and risks associated with the company’s management. More importantly, India does not really have such stocks. You may have to invest in global markets as most precious metal mining companies are listed across Canada, the US, Australia and the UK.
Your alternative in India would be to invest feeder funds for example- the DSP World Gold Fund that invests mainly in BlackRock Global Funds – World Gold Fund.
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Best Place To Sell Gold And Gold Jewelry: Cashforgoldusacom
CashforGoldUSA is the best place to sell your gold it’s a legitimate, reputable online gold buyer for selling gold jewelry that is also one of the oldest in the business.
- Pay within 24 hours
- A+ Better Business Bureau rating.
- 100% free door-to-door free, trackable FedEx or USPS shipping,
- Free Jewelers Mutual insurance up to $100,000 on each shipment
- CashforGoldUSA’s facility insured up to $100,000 by Lloyds of London
- Guaranteed highest price for your gold, coins and diamonds
- Paid out more than $156 million to sellers since being founded in 2005
- Fox Business News investigation found they pay 3X competitors:
CashforGoldUSA also pays a 10% bonus above estimated resale value for items shipped within 7 days.
How To Sell Silver & Gold Bullion Locally
About a month ago I got a phone call from my sister.
Long wind short, she had to raise some quick fiat currency to pay for an unforeseen real estate expense she had accrued.
Well I being the one who turned her onto stacking silver and gold bullion, my first mental reaction was, Uh no! You dont sell your bedrock safe haven money for unforeseen expenses on overpriced real estate.
Then my kinder mental half retorted, You know what? She is in a pinch and needs currency. She trusted you and bought bullion on the cheap in late 2008, and now shes only selling a little bit, so help your sister and do it with gratitude.
So my better angel beat the devil, and I decided to kindly help my sister sell her 10 gold eagle coins at a Local Coin Shop .
First question I had to ask her was, How quickly do you need the capital?
She replied that she required the funds fast. She needed the currency to be deposited into her L.A. bank account so she could then draw a check upon it and pay said expense in New York City.
OK so getting a quick check payment for her gold eagle coins was the most appropriate choice.
Instead of possibly getting a lower cash bid on such volume, shed likely garner a higher bid price by check AND she would also keep the capital within the financial system .
Luckily I know JMBullion.com has a handy LOCAL COIN DEALER DIRECTORY which I use to look up established brick and mortar coin shops in virtually every major city within the USA. You can too! .
Also Check: One Brick Of Gold Worth
Taxes On Physical Gold And Silver Investments
Many investors prefer to own physical gold and silver instead of exchange-traded funds that invest in these precious metals. While the tax implications of owning and selling ETFs are very straightforward, not many people fully understand the tax implications of owning and selling physical bullion. Below is a description of how these investments are taxed, as well as their tax-reporting requirements, cost basis calculations, and ways to offset any tax liabilities from the sale of physical gold or silver.
When Should I Sell My Gold Is Selling Gold For Cash Worth It
If you have to ask yes, sell your gold! Again, it is better to have cash that you very much need now to pay essential bills like rent, a car note, or utilities instead of gold coins, gold jewelry, bullion or scrap sitting in a drawer, or safety deposit box.
It can also make sense to sell gold for other investments, including stock funds in a retirement account, in real estate, or even education or a new business.
Read Also: War Thunder Golden Eagles Code Generator
Selling Gold & Silver Bullion Online
Selling precious metals to an online dealer may fetch the best price because theyre operating expenses are much lower than a local coin shop that has to maintain a physical storefront.
Selling your gold or silver online to GoldSilver.com is easy. Just follow this process:
What Kind Of Bullion Are You Selling
Some gold and silver products are more valuable or in greater demand at a given time. Factors like whether its gold or silver, a coin or bar, and a government or private mint product will all play into resale value.
Generally speaking, bullion that demanded a higher premium upfront will fetch higher prices upon resale, though it does depend on demand at the time. One way to assure that you have a strong resale ability is to buy the most popular products.
Recommended Reading: War Thunder Free Golden Eagles
Cheapest Customs Duties / Easier International Transport
Generally the easiest bullion gold products to transport internationally are government issued 24k gold coins with legal tender face values. Many governments tax 22k gold coins so if you are thinking about moving your gold bullion abroad, I suggest steering clear of 22k Gold Eagle and Gold Krugerrand coins.
If you are going to use 24k gold bars I suggest buying government issued bars. Even though they may not have legal tender face values, if the border guard sees a government stamping on it they are less likely to give you trouble.
For silver, youll do best for international shipment if you choose .999 fine sovereign silver coins with legal tender face values. Throughout Europe, silver is taxed heavily:
- Denmark 25%
- Luxembourg 15%
- Germany 19%
For international shipping of your own bullion the best 3rd party options are G4S, Via Mat, Brinks, etc.
If you are physically carrying a lot of bullion yourself across a border, I suggest asking for a private screening so as to not make a scene at the airport or border crossing.
One other note, when you are crossing borders you may be presented with a customs declaration form to document what you are traveling with .
Some people may try and play it cute by only reporting the fiat legal tender face values of the coins that they are transporting. I suggest that is foolish, for you may end up provoking a border guard who knows the true value of the coins and potentially causing more attention than is necessary.