Gold is the oldest form of currency, it is the oldest and the most trusted store of wealth and has been bought by private investors, banks, and other institutions. It is used as a hedge against currency fluctuations and market uncertainty. What is gold bullion? Simply put gold bullion is gold with a purity of 99.5% or higher. It maintains its value very well and is quite easy to sell. When talking about selling gold bullion for cash, you can generally get more than a fair amount of money than you would if you were selling gold jewellery or any other type of gold product.
The price of gold fluctuates a lot like the price of most precious metals. In 2020, the price reached record highs that have not been seen in years. This was a great time to make a tidy sum for anyone who had gold bullion to sell. The gold price jumped to highs of $2,036 an ounce in 2020 sending a lot of gold investors in a frenzy. However, the price once again dropped to the $1800s then to the $1700s and has been going back and forth between those two values for a good part of 2021.
Tips for getting the most for your gold
Selling something like gold bullion can be a significant transaction. There might be some serious implications if the process is not done right or the seller fails to follow “best practices”. Bullion has been used as currency in the past, it has always held some monetary value so it stands to reason that you will want to get the best price when you decide to sell bullion.
Here are some basic tips to help you make the most from the sale of your gold bullion:
Know the current spot price of gold
As a commodity, the gold market value is constantly fluctuating. Sales of any gold bullion should be based on the current spot price which is the market value of gold at the time of sale. If you do not know what this spot price is, then you won’t know if you are getting a good price for your gold bullion. Incorrect and outdated prices will impact your sale badly. When looking at the spot price, keep in mind that this price is based on pure or 99.99% gold. It is also based on US dollars per troy ounce. If your bullion is exactly one troy ounce then the price you should be getting will not be too far from the spot price. Gold dealers will factor in some amount to ensure that they make a profit by selling your gold.
If you have gold bullion coins like American Buffalo, Krugerrands, Canadian Maple leaf, Austrian Philharmonic, Australian Nuggets, and other coins that have been minted officially by government mints you can find their prices on most gold dealer sites like JM Bullion or Money Metals. To find what your bullion coin might be worth, find out how much they are being sold for by gold bullion dealers.
There will be a small difference between the selling and buying price of bullion coins. Coin dealers will not pay the same amount to buy coins as they would when selling them.
Find a buyer whose specialty is gold bullion
A lot of cash-for-gold businesses will buy your gold to resell at a markup. This means that what they offer you for your gold bullion will be significantly less. These cash-for-gold businesses including pawn shops operating on a buy-and-sell model can only make a profit if they offer less money to gold sellers.
Gold bullion can be bought and held over time or until the market price rises. So when you sell bullion to a gold bullion dealer, he would know that he can still expect to make a profit by holding on to the gold and not only by offering less than a fair market price.
Sell to a reputable gold bullion buyer
last but not least, make sure you sell gold bullion to the right buyer. Find local bullion dealers in your area but make do thorough research on them before you settle on one that you will sell your gold bullion to make sure they are trustworthy. It is also a great idea to get at least three different quotes and choose the buyer that offers you more. Online dealers have proven to have the best prices. This is because they have lower overheads than physical stores.
You Might Also Like
April 1, 2022
April 1, 2022