If you’re reading this, you’re likely aware of why someone would buy gold. It can be a hedge against inflation, a portfolio diversifier, and a store of wealth.
However, you might not be aware of the different ways to buy or sell gold. Should you buy or sell gold online or in a store? These are the same questions you should be asking yourself about selling gold jewellery. How do you go about buying and selling gold bullion at the best price?
Pick a dealer
Shopping is different these days. You can go the traditional route and go to an actual physical store. When you go to an actual store, you can see and feel the gold itself. You also deal with people you can talk to face to face. Most people are more comfortable with this approach because of that physical interaction.
Then there is the newer way of shopping which more than 50% of people prefer because it is more convenient than having to go out and find a physical gold dealer you can sell gold to. However, you need to get your facts straight. Learn as much about the gold you have and the places you can sell to. Figure out what makes each one different and choose the one that will give you the best deal for you gold. The problem with online gold dealers is that you never know if the person is legit, especially if you are new to buying and selling gold.
Online dealers are also unsafe. They can be attacked by hackers and your personal information can be stolen for nefarious reason. Just last year, the online retailer, JM Bullion was hacked. The site became aware of suspicious activity on their platform around July, 2020. And that’s when they discovered malware on their system. Hackers had access to thousands of customer names, addresses, credit card information, and some other things. This happened when investors were interested in investing in precious metals because COVID-19 had reached its peak. JM Bullion works with a lot of other online gold bullion dealers and it is not clear if they those other sites were as affected.
What type of gold do you have?
Gold bullion is available in the form of gold bars and gold bullion coins. Each of these types of bullion has its benefits and disadvantages, however when it comes to selling, there are distinct differences. Bullion coins like American Eagles or Krugerrands can be recognized easily. They also happen to sell goldbullion coins at higher prices than gold bars. Even 1 oz. bullion bars are easier to sell than gold bullion coins because the transaction costs happen to be high and most sellers want a premium for their coins when it comes time to sell. Some gold bullion coins are regarded differently depending where in the world they come from. Other gold bullion coins that are very liquid include The Austrian Philharmonics, the Australian Kangaroo and the Britannia coin. Lesser known sovereign gold coins from other countries can be harder to sell. Numismatic coins are also harder to sell, despite how expensive they may be when you buy them. They are collectibles and their worth fluctuates with demand from collectors.