How to get top dollar for bullion & coins
You can find plenty of articles and commentary out there on how to get the best deals when buying gold and silver, but what about the other side of the coin—selling? (No pun intended…)
If and when the time comes for you to cash in on a portion of your precious metals investments, it is important that you know what you’re doing or else you risk getting cheated or scammed by dishonest collectors who would love nothing more than to use your naïveté to make a quick and easy profit.
For example, “cash for gold” shops and advertisements are everywhere nowadays, but the problem is they rarely give sellers the true value of their bullion. When it is time for you to sell your gold or silver, it pays to do your research, be realistic, and not be in rush.
To ensure that you are getting a fair price when selling your gold or silver, be sure to follow these prudent steps:
1. Determine the Value.
Before knowing what you can realistically expect to get out of your gold or silver bullion, first you need to know what you have. Closely examine the weight, purity and condition of the items you are trying to sell, as these have an impact on their value. (Note: The value of a gold coin may or may not be affected by condition, but if your coins are dirty do NOT attempt to clean them. Cleaning will potentially damage coins — and possibly their value.)
Next, do your research to come up with an estimate. If you are looking to sell gold or silver coins, be sure to check if they have any additional worth beyond melt value. For instance, does the coin have historic value? Certain coins with numismatic or historic significance fetch a higher price than their bullion value. It’s also a good idea to know the current price of gold or silver. The spot price is the cost for delivery of physical metal, which in this market is two days from the trade date, and changes daily. Gold and silver spot prices are typically measured in troy ounces—equal to 31.1035 grams. Keep in mind, however, that dealers usually offer sellers slightly lower amounts than what they sell the item for, so subtract a few percentage points to make up for dealer profit.
Don’t know what you have or how to research its value? Take your gold or silver to a dealer that specializes in precious metals—not general pawn shops or cash-for-gold stores—and ask them to estimate its value. Even if you don’t end up selling locally, at least you will have a base price on hand before seeking online bids.
2. Shop Around.
Compare local precious metals dealers to online dealers. Online stores can usually offer better rates since they operate with lower overhead than brick-and-mortar shops and, hence, can afford to take a lower “premium.” They also offer the convenience of selling your metals from the comfort of your computer. If you decide to go the online route, it is important to take all the necessary precautions. Start by checking with consumer watchdog websites like the Better Business Bureau, and then research customer reviews of the company. Trust is critical when choosing an online buyer, so if you have any misgivings about the reputability of a company, walk away.
3. Avoid Cash-for-Gold Scams.
As mentioned above, beware of “cash-for-gold” stores, TV ads and transient vendors promising a quick buck for your gold or silver. These services are often connected to dishonest business practices and will try to use every trick in the book to get you to undersell your investments. Such dealers are notorious for not telling sellers accurate or current spot prices, and they will likely attempt to use instant cash as an enticement to sell your gold or silver for much less than it is worth. Take your business elsewhere.
4. Read the Fine Print.
Whoever you end up selling your gold or silver to, be sure to review the terms and conditions carefully. Even if you use a legitimate site that buys metal online, reading the fine print is critical to avoiding a costly mistake. The BBB warns sellers: “Some websites offer free shipping to send in gold, but gouge with return shipping rates if you change your mind. Check the buyer’s policy, too, on reimbursement if they lose your gold. Many offer only limited liability.” Additionally, many online dealer have a minimum dollar amount that they will purchase.
5. Check the Credentials.
Lastly, ask the potential buyer to show you his or her credentials proving that they are licensed by the state to buy gold and silver. As required by law, the buyer should also ask you, the seller, for a government-issued ID (your driver’s license or passport for example). This practice is intended to prevent money laundering and make it harder to sell stolen property. If your buyer does not ask for your ID, keep shopping around for one that does.
Get Top Dollar for Your Precious Metal Coins & Bars!
On top of being a top seller of bullion and numismatic gold, silver, platinum, palladium and copper, at Provident Metals we also make it our goal to offer you the best possible prices for purchasing your precious metals coins and bars. Above all, selling us your bullion guarantees a simple, hassle-free and secure way to get the most from your coins and bars.
Our record prices are updated constantly to reflect the current spot price, so call our Coin and Bullion Department toll-free at (800) 313-3315 to lock in your price right now. Then, all you have to do is ship your precious metals to us in Dallas, Texas, and cash your check when it arrives.
You can learn more about selling your precious metal bullion here.
My husband and I have a lot of gold coins that we have inherited and we are thinking of selling them so I am glad that I found this article. You make a great point that you should do your research and come up with an estimate of what the coins are worth. Also, we will make sure to shop around and find a store that will give us the best deal and is a reputable company.
Glad to have helped, Elsa!
Great tips to examine the purity and condition before selling. Coming in with an estimate of your own beforehand I feel like would help get the best price for your gold or silver. My sister is thinking about trading in some gold earrings she inherited from my grandma. I will refer her to this article.
Thanks Jordan! Hope your sister gets top dollar for her earrings.
I like that you talked about how it’s a good idea to know the current price of gold or silver. My dad is looking to find a sell your silver business so he can trade it in. I’ll be sure to talk to him about educating himself a bit on prices before hiring.
Hi Kyle,
Good news for your dad…we buy silver right here at Provident. Check out our buyback program and see if it’s a good fit for his needs.
My wife and I have been thinking about finding a gold buyer that we could get rid of some old jewelry with. I’m glad that you talked about being sure to read the fine print when working with a gold buyer, and that you want to be sure to understand conditions so you don’t make a mistake. I would hate to get taken advantage of because we’re unfamiliar with the gold buying process, so being very careful about reading policies and conditions would be smart for me! Thanks for the tips!
Good luck, Max!
I don’t know very much about this kind of thing, and I’m not sure I would ever get into it because I don’t have any gold or other precious metals. I thought this did a great job at illustrating the best way to not get scammed. It’s to bad we live in a world where there are people that will take advantage of you, so it’s best to be prepared. Thanks for the info. You never know, I may find myself in this kind of position.
I would like add to above wise words: Sell only a little bit at a time. As in “dollar cost averaging.” That way you sell more when it is cheap, and sell less when it is expensive.. Also you learn more about the process as you go along. You get the “feel” of it. Your mistakes aren’t as costly, and you find out who the crooks are at a lower cost to your pocketbook.