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Whether you were left an inheritance or invested yourself, when you are ready to sell your gold, there are a number of important factors to consider. Gold bullion remains a timeless and valuable asset, but there is a right time for everyone to sell. You most likely are wondering what is the best way to sell gold bars or coins? In this comprehensive guide, we will explore the best practices on how to sell gold bullion bars or coins and maximize your returns while avoiding common mistakes people make.
What is gold bullion?
Gold bullion is a term that is used to refer to gold coins or bars that are only worth their weight in gold, and do not have numismatic value (additional collectable value over their melt value). Most bullion items are measured in troy ounces or grams. There are 31.1 grams in 1 troy ounce, so if you are left a 10g gold bar for example, you would divide 10 by 31.1 (10/31.1) which is .32 ounces. If gold is $2000/oz, then a 10 gram gold bar would have about $640 worth of gold in it. Knowing how much your gold bullion melts for before proceeding will help you figure out if you’re getting a fair price.
When is a good time to sell gold bullion?
If you are wondering when to sell gold bullion, it’s important to understand current market trends. Looking at a graph of gold, it generally trends upwards over time. If gold is at a multi-year low, it may not be the optimal time to liquidate. Unfortunately there are many people who are forced to sell at inopportune times, and if that’s the case the rest of this blog will still be very helpful! You can stay informed with the current spot price of gold is by doing simple searches online or contacting your local coin shop.
Where should you sell your gold bullion?
Arguably the most important step is finding a reputable dealer. Where to sell gold is the most important question you can ask, as some places will pay significantly more. Can you sell gold bullion to a bank? Unfortunately, banks have stopped taking bullion directly once our money stopped being backed by gold and silver. Local coin shops and bullion trading firms are going to be your best bet, assuming you check their credentials beforehand. Shops should be well established with a strong Google profile and many positive reviews. Be wary of a shop that has opened recently or has few to no reviews online, as these are clear red flags. If you were left gold bars or coins, or if you’ve been investing and decide it’s time to sell, getting multiple quotes before deciding where to go is a very good idea. Don’t be afraid to call multiple dealers and get as many quotes as you feel necessary.
There are many different places that advertise they buy gold, which should be avoided. ‘We Buy Gold’ shops, despite literally only buying gold, are notorious for paying low percentages. They advertise heavily on how to sell gold bars for cash, but then quote unfair and insultingly low prices. Traveling buyers who set up in hotels and take out full page ads are also known for offering extremely low prices. There are some large online buyers who advertise where to buy gold, and although they may be reputable companies, you are tasked with shipping extremely value items across the country. A reputable local coin shop should be able to match or beat these online companies anyway without the hassle of having to ship your gold.
How much money should you expect to get from selling gold?
You should be receiving very close to the spot (melt) price of your gold. A strong offer is 96%-99% of melt, a fair offer is 93%-95%, a weak offer is 85%-92%, and anything under 85% is too low and should be ignored. This is strictly referring to gold bullion bars and coins, as gold jewelry does bring a lower percentage than these figures. Gold bullion is usually clearly marked how much it weighs, so it becomes a math problem to figure out what it’s worth!
Is gold bullion reportable when selling?
If you were left an inheritance or are worried about tax implications, there are some things to consider. There are some thresholds that, when crossed, require the purchaser to fill out a 1099-B form, but generally these do not come into play unless you have over $50,000 worth of gold bullion. If you have 5-6 ounces of gold or more and want to get cash, any cash transaction over $10,000 is also reportable requiring an 8300 form to be filled out. If you think you might be affected by these reporting requirements, you should talk to a financial advisor or accountant to make sure you are proceeding the right way.
Get expert help selling your gold bullion and gold bars
When considering what is the best way to sell gold bars, remember that timing and where you sell are the most important factors. Find 3 reputable coin shops in your area with good reviews and a proven track record and call each shop. Tell them what kind of gold bars and/or coins you have and ask them what their best offer is, and choose the highest offer, it’s really that simple!
Following this guide and sticking to best practices will ensure a safe and profitable transaction. Ready to turn your gold bullion and gold bars into cash? Let the experts at Edelman’s Coins help you navigate the process of selling your gold.
