How To Convert Gold Into Cash
The process is fairly simple, but to get the best price for your gold, you need to take some specific steps to protect your interests.
If youre a complete newbie to the process, you may want to visit the end of this article first. Weve put together a Glossary of Gold Terms that well be referring to throughout this article and you might find it helpful to know exactly what Im talking about if youre not sure.
First, you need to decide when you want to sell your gold. You may be financially strapped after a divorce, or the divorce itself may be forcing you to sell as part of the agreed-upon settlement.
You may also simply want to redistribute and allocate your investments, pay for college tuition, buy a car, or a house, or if the gold market appears to have topped out, perhaps youll shift your funds to trading in other types of metals.
If you can afford to wait so that you can find the right time, that may be your smartest move. Youll want to start following the spot price for gold which changes daily. Listen to gold market and futures experts on where gold is going to go and be prudent in your timing.
Next, youll need to find a trusted place to sell your gold. A local pawn shop or coin dealer will give you the opportunity to talk to someone in person and walk away with money in your hand that same day.
But some dealers, such as APMEX, offer a 1-day guarantee, meaning youll be paid within 24 hours from the time your products are validated .
Why Is There A Spread On Precious Metals
My friends in Singapore explain it this way
Precious metals and bullion products in physical form often have a higher price than the spot-price. The spot-price is the price for which someone can buy certificates or futures on the commodity exchange. It is, however, mathematically impossible based on the paper market volume traded, for these so called paper metal products to be fully backed by physical precious metals.
Gold and silver in bullion form is often minted into 1 oz coins or small bars ranging from 1 oz to 10 oz. It is an advanced process to melt, mint and certify bullion products with high quality and precision. Everything from design work to manually engraving stamps has to be calculated in the cost. It is therefore normal that a 1 oz coin costs more than 1 oz of the actual metal.
Since the spot price for gold is multiple times higher than that of silver, it is also normal that the premium for a 1 oz silver coin amounts to a larger proportion of the price percentage-wise compared to a 1 oz gold coin. The natural premium doesnt change much over time and matches the cost of the minting process.
Why Is The Spot Price Of Gold So Important
As mentioned above, the spot price of gold is the base for gold transactions. You shouldnt expect to buy gold exactly at the spot price, otherwise, bullion dealers wouldnt be able to cover overhead costs and still make a profit and would be out of business. Dealers charge a premium, which is a small percentage over the spot price of gold, for each gold item. That is what is called the ask price. Minted gold bars, which usually have a design and require more work than gold ingots, carry slightly higher premiums.
Likewise, when reselling your bullion to a dealer, you shouldnt expect to receive the same as the ask price. The bid price is how much the dealer is willing to pay for your gold bars.
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How To Sell Your Bullion Best
Selling your bullion and getting a good bid price is every bit as intricate as intelligently buying your bullion. Full attention to detail is required to successfully sell your bullion at the best price.
When it comes to turning your bullion into fiat currency there are hundreds of online and perhaps local options too, especially if you live in a large city. I suggest when selling you only deal with proven dealers with long track records. Common sense suggests you never meet with any stranger in public to sell any of your stash unless you are looking to be robbed at gunpoint there or later on your drive home.
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:
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How Can You Tell If Gold Is Real
This actually applies to gold you already have, as well as gold youre considering as a purchase.
There are several possible ways to test gold to see if it is real. Because of golds unique properties, it is difficult to produce fake gold but that doesnt mean people dont try.
Gold is one of the densest metals on earth, meaning that any metal used to attempt to replicate gold will be much less compact. If you have gold bullion and coins of a purported certain weight, you can simply weigh and check the size of your bullion which is made to a set of specifications that make a reference point comparison relatively easy to do.
Another simple test is to use a magnet. Unlike most metals, gold is not magnetic, so a real gold bullion coin, bar, or piece of gold jewelry will not stick to a magnet. You will need to know if your pieces have other types of metals or not.
Gold also has a distinctive ping sound when it is struck. Precious metals will have a high-pitched ringing sound when struck, as opposed to base metals that will have a much shorter and duller sound.
You can also drag your gold over an unglazed ceramic plate applying slight pressure. If you see a gold mark on the ceramic once youve done this, then the gold is real. But if the mark is black then it is fake.
Different strengths of acid are available to test different carats, so gold that doesnt react to the acid is at least as pure as the carat rating suggested, if not higher.
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.
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Where To Find Scrap Gold Around The House
Scrap gold that you may have on hand to sell includes:
- Dental fillings, bridges and gold crowns
- Broken jewelry
- Antique china you can chip off gold trim on these dishes
- Gold plated silverware
- Gold is found in the processors and connectors in computers, circuit boards, tablets, and smartphones use gold though extracting this gold is complicated
- Gold heat shields, gold reflectors, gold mirrors, gold optics
- Gold solder
The Most Common Way Is To Sell Gold And Bullion To A Local Store
The main reason most people prefer to sell to a local cash for gold store is convenience. Primarily, a local coin or pawn shop will pay you much more quickly. If youre going to take this route, you also have the benefit of a safer place to transact. On the other hand, youre likely to get paid less and may even have to bargain. Ideally, you might get an estimate over the phone. If you can make sure the store is reputable, you will probably not see a significant price change for reasons other than changes int he spot price. With that in mind, you should always remember that people buying gold and silver bullion are likely to try and lowball you.
The challenge comes up from the fact that you may have to travel quite a bit to get the best price. Most people dont appreciate that the time and effort spent chasing down that last dollar cost more than the inconvenience is worth. You also need to determine what type of store you want to sell to. Generally, you want to go somewhere with higher volumes and a good reputation. With that in mind, if youre looking to pawn it, a mall stand or kiosk is going to be of little benefit. You should generally avoid pawnshops as they wont get you more than 40-60% of the value of your metal. Funny enough, most traditional shops wont do much better than their pawn competition.
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Should You Sell Your Gold Online
Like with almost every other business transaction, the internet is an option for selling your gold. Ebay, for example, has a marketplace where sellers can send a photograph of their item and receive a quote — without sending in their item. Notably, their buyback partner, APMEX, only accepts bars, coins and rounds.If you have coins or bullion, Smith said, selling the items on eBay is better than a pawn shop. But he prefers local in-person transactions to online sales. Basically you know who you are dealing with, he explained. I guess Im old school inasmuch as I like to deal face to face. If I dont get that warm fuzzy vibe of trust I go elsewhere.
Special caution is warranted, though, if you elect to mail your items to a potential purchaser as part of an online sale. Make sure to take photographs of your items and make a list before mailing them out. Also, you should insure the package before mailing it.
Frequently Asked Questions About How To Sell Gold
Is gold difficult to sell?
Not at all! It’s simply a matter of finding a gold bullion dealer with a good reputation. If you bought your gold from a professional dealer in the first place, you should always be able to sell your gold back to them.
How can I sell my gold online?
Selling gold online isn’t much different than selling it in person. All you need to do is find a trustworthy gold dealer with a website. There you should find information about the process of selling gold online. Using the information in this guide, you can judge for yourself if they are a reputable gold buyer.
You will need to know what kind of gold products you’re trying to sell, however. A dealer can’t make you an offer until they know what specific items you have. This is why doing some research about what type of gold you have is a wise decision.
How much do you get for selling gold?
It depends on how much gold you’re selling in terms of weight, and what the gold price is at the time you sell. This hand melt value calculator can help you calculate how much gold you have.
You can read more about how much a gold bar is worth on the Gainesville Coins blog.
How much money do gold dealers pay for gold?
Gold dealers will normally pay at least 98% to 99% of the melt value for your gold. This is a standard practice in the gold market. In the case of a collectible gold coin, the dealer may pay more.
Can gold be sold for cash if I need quick cash?
Can I sell my gold to the bank?
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Using The Market Depth Screen
Some people use the market depth screen as an indicator of future price movements.
Get there by pressing BUY/SELL to get to the order board and then clicking Market depth in the Views dropdown menu.
A deeper market is one in which you can buy or sell more bullion. The longer the yellow lines the more gold there is about hoping to be bought. The longer the green lines the more cash there is about, chasing gold.
The most competitive prices are only available for a limited quantity of gold , next to the middle grey line on the screen. As the terms improve for your prospective counterparties the quantity of bullion you can trade increases too. In other words if you’ll pay a bit more you can buy more bullion and if you’ll accept a bit less you can sell more bullion.
Pay particular attention to the cumulative and logarithmic scales of this graphic.
- The cumulative figure means that for each new price – away from the central grey strip – the depth includes all more competitively priced gold.
- The logarithmic scale means that each additional increment on the horizontal scale multiplies the market depth . This allows the screen to show scales from a few grams to 100 kilograms.
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What Is A Gold Spot Price
The spot price is the price that gold will sell today on the spot. The gold spot price is used by gold buyers to set the price they will offer you for your gold today.
Gold spot prices is the value of gold to be delivered immediately after purchase is called the spot price, calculated as the average net value of all currently traded gold futures for the next month.
Selling Gold & Silver Bars
Gold and silver bars generally have high resale value, especially those bars that have been kept in professional vault storage.
Bullion bars produced by the most reputable mints and refineries have the strongest resale value. These bars come with a seal from the mint of origin, and sometimes include a serial number for easy identification and certification. With these bars there is low risk involved in buying or selling.
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How To Sell Gold Bars And Coins: In Summary
If youve been sitting on your gold bullion waiting for the right price, now is a great time to sell, with the price of gold reaching the highest levels for several years. Our top recommendation for selling gold bars or coins is Abe Mor, who offer the best customer experience and value for your bullion. Selling with a reputable online dealer like Abe Mor is the best way to get close to market value, and turn your gold bullion into cash without any undue hassle.
Wherever you sell your gold bars or coins, be patient and follow the best practices outlined above. Doing so and knowing the value of your gold will help you make a prudent decision when its time to sell.
The Best Type Of Gold Bullion To Buy
When Peter Schiff spoke at my first Passport to Freedom conference, he and I discussed that we both believe buying standardized gold bullion coins from national mints is the best way to invest in gold.
That means Canadian Maple Leafs, Austrian Philharmonics, and, if you insist, American Eagles.
Gold and silver rounds with skulls or bayonets on them, treasure from ancient shipwrecks, as well as nostalgic pre-1933 gold coins are all extremely overpriced ways to buy gold. They are also far less liquid.
Buying some specialty round from a designer means youll pay a higher spread for the pleasure of looking at a skull on the back of your gold coins. Likewise, if youre planning to internationalize your gold at some point, no gold dealer in Hong Kong or Singapore will want some piece of gold with a skull.
Similarly, I recommend avoiding special edition mint coins, like the Canadian wood buffalo or moose coins. Youre paying an extra premium over the price of the metal that may not be able to be recovered if the dealer you want to sell to doesnt care about the limited edition.
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