Buying Guide: How Easy Is It to Sell Gold?

Investors often seek refuge in gold when economic instability or global events, such as the COVID-19 pandemic, rock the markets.

With inflation on the rise and stocks fluctuating, many look for a particular asset that boasts a proven history of gains, and that’s where gold shines.

Investors are drawn to gold for its distinct qualities, separating it from traditional securities like stocks and bonds.

It’s perceived as a stable store of value, even without generating cash flow. Gold is also viewed as a bulwark against inflation, as government and central bank efforts to revive the economy, such as low-interest rates, drive up the gold spot prices.

Explore the possibilities of gold ownership with this rundown of five methods, including a rundown of the associated risks.

Table of Contents

Top Five Ways to Own Gold

Gold Bullion – Physically owning golden bars or coins can provide emotional satisfaction but also comes with the need to insure and safeguard them. Profit is solely based on the rise in the gold price, unlike owning a gold mining company that can produce more profit. You can purchase it through online dealers or local dealers and pawn shops. Risks include theft and difficulty in receiving the total value when selling gold bullion.
Gold Futures – It’s a way to speculate on the price of gold rising or falling, with the advantage of leveraging a large amount of gold for a small sum. However, there’s a high risk of loss if the price moves against your goals, and it’s only suitable for sophisticated investors.
ETFs (Gold) – It’s an exchange-traded fund that tracks gold with low expense ratios and high liquidity. It offers exposure to the price of gold, with the added convenience of trading from home.
Mining Stocks – Investing in gold mining businesses can result in two profits, one from the rise in the gold price and another from the miner’s ability to increase production. Risks include volatility and the need to select a proven industry player carefully.
ETFs (Mining Stocks) – It’s a diversified option to own the most significant gold miners in the market without researching individual companies. The more considerable funds in this sector include VanEck Vectors Gold Miners ETF (GDX) and Global X Gold Explorers ETF (GOEX).

Tips to Easily Sell Your Gold Coins

Selling gold bars is a big decision with significant consequences. Whether you’re using it as a jewelry store of value or an investment, you want to ensure you get the best gold prices possible.

Here are some ways to help you easily sell regular or scrap gold and maximize your return.

Know the Gold Market Value

Gold is a commodity with a constantly changing value. Its price is based on the current gold prices, which is the price of 99.99% pure, 24K gold at the sales time.

It’s important to understand two things about gold’s price:

It refers to 99.99%, 24K pure gold. Although gold is almost always a bar of pure gold, it will be worth less if it has a lower karatage.
You won’t get the same gold spot price, mainly if you sell your gold in a small amount. Gold merchants typically charge a small commission, which reduces the spot price. You should expect a higher fee for selling scrap metal or old gold jewelry that needs to be refined and melted down, but you should sell gold coins and bars for something close to that price.

Understand Your Gold’s Value

Once you see the gold prices, you can estimate the value of your gold jewelry. The value of the gold is easy to determine. You can weigh your gold using a kitchen scale and a gold price calculator to determine its worth.

Here, the “weight times value” equation works best for yellow gold. If you’re selling minted golden coins, check their value on sites like Money Metals Exchange, Monex, or JM Bullion.

This gold coin is often sold per unit, so to find out how much they’re worth, you can multiply the coin’s current price by how many you own. Remember that there will be a slight difference between gold’s buying and selling prices.

Sell to a Specialized Gold Dealer

Many companies that give cash for gold buy it to sell it for a higher price, which means they’ll provide you with less money than it’s worth. A pawn shop, for example, has to buy gold jewelry for less than its value to make a profit.

Gold is an investment, and its value is expected to rise over time. When you sell coins or bars, you’re selling close to the exact market price, and other gold buyers can profit by holding onto it.

Sell gold bullion online to a purchaser specializing in coins and bars, not a retail store that won’t offer a fair value.

Find a Trusted and Safe Gold Buyer

Finally, ensure you sell the gold to a trusted buyer. You’ll usually get the best prices by selling gold online, as online gold buyers have much lower overhead and will offer better prices.

If you prefer to sell locally, look for a local bullion dealer. Research the dealer thoroughly to make sure they’re reliable and trustworthy. Get an approximation or quote before you sell gold online.

Avoid a pawn shop or local jewelers, as they won’t give you a reasonable price for your gold, especially if it’s an investment like bars or coins, which you should sell close to market value.

Tips to Find the Best Places When Selling Gold Jewelry

Here are some tips to find the best places when selling gold jewelry.

Local Bullion Dealers

In-Person Transactions – If you prefer face-to-face interaction when selling gold locally, look for local gold buyers in major cities near you.
Trustworthy Dealers – However, be cautious and choose a reliable dealer to avoid any potential pressure or misinformation during the transaction. Before heading to a local dealer, check their reviews and recommendations, and estimate the worth of your bullion.

Online Bullion Dealers

Best Value for The Gold – Selling your gold online can often result in the best value, as online dealers tend to have lower overhead costs and better prices.
Reputable Online Gold Buyer – There are many trustworthy options available. Search “sell bullion,” “selling coins,” or “sell gold jewelry” to find various dealers.
Due Diligence – Regardless of whether you sell in person or online, always perform due diligence on the store or dealer you are considering to ensure a trustworthy transaction.

Final Thoughts

The glitter of gold may attract some investors, but others prefer the steady stream of income generated by productive businesses.

Choosing this route means not relying on a hypothetical buyer to pay more for precious metals but instead participating in the growth and success of a company.

It’s also easier to manage and liquidate stocks or funds than physical gold, providing added flexibility to meet financial needs.

In the case of those seeking a more practical and secure investment option, the stock market may be worth considering. Still, investing in gold isn’t as hard as many people make it to be, so if you’re interested in diversifying your portfolio, make sure to keep an eye out for it!