Where to sell?
Posted: 16 Nov 2011, 07:51
Selling gold is not difficult. Gold is highly liquid. Although the media often sells people that "if you bought gold, you need somebody who wants to buy it, if you want to sell...". Yet, when thinking about this one can use that assumption for every asset class (stocks, bonds and even your car or house). A market always exists in form of a buyer and seller meeting in form of price and goods exchanged...
So finding a buyer is a less difficult task than proclaimed by public channels.
Yet, when selling gold one has to clarify one fact - what kind of gold do you want to sell? "Gold" finally ranges from standard bullion coins/bars to collectible coins, jewelry or scrap metal. Be aware that the most important and decisive factor for your final sales price is the gold content. While a standard bullion (despite the Kruger Rand) coin is 999 or 99,9% gold, this may not be the case for jewelry or scrap pieces such as teeth etc. The buyer will thus first check your items and then give you a corresponding price. This post will assume that you sell standard bullion or scrap metals. Numismatic premiums or jewelry prices will not be considered as this forum is not touching these topics.
Also be aware that there will be a certain spread between the bid and ask price for gold. While you may pay 100% for gold when buying it, you will be offered somewhere between 95 to as low as 80% when selling it. This bid/ask spread often varies heavily between buyers.
Let's discuss some suggestions:
1. Bullion dealers
Just like buying gold, selling your metal at respected bullion dealers can be an easy and efficient way. If you sell bullion to a bullion dealer there will be little reason for discussion or talk. He knows what he is buying, just as much as you should know what you are selling. Experience shows that often bullion dealers offer a competitive buying price for gold somewhere around eight to ten percent below spot price.
2. Gold buyer shops
With raising metal prices all across Europe gold shops are popping up. These often loudly advertising buyers sometimes leave a questionable impression. While surely not all business men running such an operation are questionable, one still hears of unadjusted scales, extremely low buying prices or falsified gold tests. Thus, be careful and gather information of what you are actually selling giving you a rough idea of what price you may end up with. Experience shows that often bullion dealers offer a competitive buying price for gold of ten to 15 percent below spot price.
3. Gold refineries
In some European countries (like Austria or Germany) you will find clusters of refineries. They also offer to buy gold and will either sell it on (in the case of bullion) or refine it (in case of scrap or jewelry). Most of these companies are highly respected, well known and often run for decades by the same management. Thus, they are trustworthy but calculate with refining costs. Therefore their prices offered to the public are often 20 percent (in words twenty!) below spot price.
In most cases you will be offered to be paid with bullion. This payment method may make sense when thinking of selling some gold scrap and getting bullion afterwards - yet, in this case you need to consider a certain add-on on bullion prices due to refining costs.
4. Ebay
If you trust Ebay and Paypal you even try to sell your gold online. This may give you the option of getting a price very close to spot price. However, you may want to consider extra costs for Ebay sales fees or Paypal transactions.
5. Friends, Family and other private contacts
Just like for buying gold that may be a respectable source. However, when selling gold privately you may want to consider who you sell to and make sure that you get a reasonable price for your metal. Keep in mind that people you do not really know may then be aware of the fact that you own precious metals.
6. Banks
It was hard to believe what I heard from selling gold to banks. Yet, I repeatedly got it confirmed. For a variety of European Banks gold purchases from customers require the customer to a) give the gold to the bank in advance without payment, b) the bank sends the gold to a laboratory for analysis on its content even for standard bullion coins/bars, c) the lab gives the info to the bank, d) the bank offers the customer a price well below spot price and deducts the analysis costs from that price as well. What an expensive nonsense!
In other words: You may get a better rate with all other options stated above than with selling bullion to a bank!
I invite all forum members to participate in this post and add further sources to the list.
So finding a buyer is a less difficult task than proclaimed by public channels.
Yet, when selling gold one has to clarify one fact - what kind of gold do you want to sell? "Gold" finally ranges from standard bullion coins/bars to collectible coins, jewelry or scrap metal. Be aware that the most important and decisive factor for your final sales price is the gold content. While a standard bullion (despite the Kruger Rand) coin is 999 or 99,9% gold, this may not be the case for jewelry or scrap pieces such as teeth etc. The buyer will thus first check your items and then give you a corresponding price. This post will assume that you sell standard bullion or scrap metals. Numismatic premiums or jewelry prices will not be considered as this forum is not touching these topics.
Also be aware that there will be a certain spread between the bid and ask price for gold. While you may pay 100% for gold when buying it, you will be offered somewhere between 95 to as low as 80% when selling it. This bid/ask spread often varies heavily between buyers.
Let's discuss some suggestions:
1. Bullion dealers
Just like buying gold, selling your metal at respected bullion dealers can be an easy and efficient way. If you sell bullion to a bullion dealer there will be little reason for discussion or talk. He knows what he is buying, just as much as you should know what you are selling. Experience shows that often bullion dealers offer a competitive buying price for gold somewhere around eight to ten percent below spot price.
2. Gold buyer shops
With raising metal prices all across Europe gold shops are popping up. These often loudly advertising buyers sometimes leave a questionable impression. While surely not all business men running such an operation are questionable, one still hears of unadjusted scales, extremely low buying prices or falsified gold tests. Thus, be careful and gather information of what you are actually selling giving you a rough idea of what price you may end up with. Experience shows that often bullion dealers offer a competitive buying price for gold of ten to 15 percent below spot price.
3. Gold refineries
In some European countries (like Austria or Germany) you will find clusters of refineries. They also offer to buy gold and will either sell it on (in the case of bullion) or refine it (in case of scrap or jewelry). Most of these companies are highly respected, well known and often run for decades by the same management. Thus, they are trustworthy but calculate with refining costs. Therefore their prices offered to the public are often 20 percent (in words twenty!) below spot price.
In most cases you will be offered to be paid with bullion. This payment method may make sense when thinking of selling some gold scrap and getting bullion afterwards - yet, in this case you need to consider a certain add-on on bullion prices due to refining costs.
4. Ebay
If you trust Ebay and Paypal you even try to sell your gold online. This may give you the option of getting a price very close to spot price. However, you may want to consider extra costs for Ebay sales fees or Paypal transactions.
5. Friends, Family and other private contacts
Just like for buying gold that may be a respectable source. However, when selling gold privately you may want to consider who you sell to and make sure that you get a reasonable price for your metal. Keep in mind that people you do not really know may then be aware of the fact that you own precious metals.
6. Banks
It was hard to believe what I heard from selling gold to banks. Yet, I repeatedly got it confirmed. For a variety of European Banks gold purchases from customers require the customer to a) give the gold to the bank in advance without payment, b) the bank sends the gold to a laboratory for analysis on its content even for standard bullion coins/bars, c) the lab gives the info to the bank, d) the bank offers the customer a price well below spot price and deducts the analysis costs from that price as well. What an expensive nonsense!
In other words: You may get a better rate with all other options stated above than with selling bullion to a bank!
I invite all forum members to participate in this post and add further sources to the list.