If you have gold bars or coins sitting around, you may be wondering how to sell them. If it was an inheritance or an investment purchase, it’s always good to know what to do when the time comes.
The selling price for your gold bullion is calculated based on Your Gold’s Weight x Your Gold’s Purity x Gold’s Current Market Value. You can sell your gold bars and coins to trusted and knowledgeable merchants. You should look for merchants that specialize in gold bullion. These can be local or online.
Before you sell, it’s always good to know how to get the maximum amount. You also may want to assess the value yourself to make sure you aren’t getting ripped off. Read on to know how to maximize your profits and make the right decision on when and where to sell.
How to get the Most Money for your Gold Bars and Coins
Trying to sell your gold can be nerve-wracking. After all, the value of gold is constantly changing. There are also scams out there when it concerns gold. It is important to remember that you should always do extensive research. It is best to get multiple offers for gold bars and coins.
We have some other tips for you as well!
What is the Current Value of Gold?
Before you get an offer, make sure to check the current value of gold. The value of gold changes per day. Look this up on a trusted website, preferably one that has no investment in the value of gold.
Our favorite place to check the value of gold is Business Insider’s Market Insider. It is a reliable website. It also does not sell or buy gold, so there is no potential bias. The number you see is Price per Ounce.
What is the value of your Gold Bullion?
It is important to understand the value of what you own to a degree before you get offers. If you don’t have any idea what you possess, scammers may try to take advantage of you.
Gold bars and coins are also referred to as gold bullion. It simply means that it is pure precious gold. While gold is a great investment, it comes with risks. Counterfeit is part of the risks that investors face.
So first, make sure your is Gold Real.
First things first, are you sure it is real gold? If not, here are 4 ways to make sure your gold is real.
1. Look for Official Number Markings
Real and legal gold coins and bars will have multiple markings on them.
Certified or graded coins will have a registration number. This registration number should show on the plastic packaging. It should be from the Professional Coin Grading Service or Numismatic Guaranty Corp. If this marking is there, then you know it is a legitimate gold coin.
Gold bars will have mint markings. These will have a mint logo and purity and weight. Some gold bars will have serial numbers. Producers engrave gold in the same way. You can search for the producer and compare your engraving to others.
2. Try the Magnet Test
Real gold does not respond to a magnet. For this test, you can’t use a simple refrigerator magnet. You will need a strong magnet for this test. If the magnet is attracted to the gold, you have a fake on your hands.
If not, there’s a good chance it is real. You may want to perform a couple of tests still. Some other metals can pass this test.
3. Try the Weight and density test
Weight is another easy way to quickly tell if your gold is real. For bars, the weight should be printed directly on the bar. All you have to do here is weigh it and compare the weights. Coins are a little more complicated.
For coins, you will want a graduated container and a precision scale. You will need one that can weigh to at least one-tenth of a gram. Follow these steps to measure the density of your coin:
- Place water in the graduated container
- Note the exact position of the water
- Drop the coin in the container carefully
- Note the new position of the water
- Subtract the original position of the water from the new position and write down
- Weight the coin on the scale
- Calculate density: weight of the coin (in grams) / volume (cubic centimeters)
If you end up having a calculation over 15 g/cc, it is most likely real gold. Do the calculation a few times to make sure you are calculating correctly—this can get tricky!
4. Get a Professional Appraisal
If you still aren’t sure, take your gold bar to a trusted professional. If you don’t know who to trust in your area, take it to multiple shops. However, one professional should be able to tell you if it’s real or not.
Next, Calculate the Value of Your Gold
Now that you know that your coin or bar is real, it’s time to calculate the value. There are a few steps to this as well:
1. Figure out the Purity of Your Gold
Gold purity ranges from 0 to 24 karats. For gold bars specifically, they are normally used for investing. Investing in gold is something that will never lose value. Gold bars are typically 24-karats, meaning pure gold. They should be stamped with purity. Figuring out the purity of your gold bars shouldn’t be hard.
Gold bars should almost always have .9999 or .999 stamped on them. This is simple to double-check.
For coins, it can come down to research. You may need to check online databases to find your specific coin to find out the purity. If you can’t identify it on your own, take it to a professional. A jeweler has tests they can complete to find out the purity of your coin.
2. Weigh Your Gold
The next step in finding out the value of your gold is to weigh it. For gold bars, this value should be printed on your bar.
For coins, make sure to have a scale that can measure to one-tenth gram. Place it on your scale and write down everything that returns. When you get an estimate, your weight will probably differ. This is because professionals have very specific scales. Weighing it yourself will give you a good idea.
3. Calculate the Melt Value of Your Gold
Your gold’s melt value defines how much you would make if your gold is melted down and sold. To calculate this, use this formula:
[Your Gold’s Weight x Your Gold’s Purity] x Gold’s Current Market Value
This will calculate the value of the gold itself.
4. Look at Comparisons
It is always helpful to look at comparisons. Many gold bars have a premium added to the cost of the melt value. The premium may be because of condition, producer, and more.
A coin is a bit harder to track down the value of for multiple reasons. Many coins can be collectible. This means that one person is much more likely to pay more for it than another. There are a few places to start, though.
Coins have both blue book and red book prices. The blue book serves as a starting place for popular coins. If you have something a bit rarer, you would want to check the red book price for your coin.
Where should I sell my Gold Bullion?
It is important to find a knowledgeable merchant to give you an offer. We do not recommend going to pawn shops or the nearest place with a “We Buy Gold” sign in the window. They can be trustworthy folks, but they do not specialize in gold bullion. Therefore, they themselves will not know the value of what you are bringing to them. See also: Cash for Gold Explained: What you Need to Know
A merchant you choose to get an offer from should specialize in the industry. Not sure who to go with? Ask around, read online reviews, check BBB, and more. We also have some suggestions we will go over below.
Sell to a Trusted Gold Buyer
Choosing your merchant can be nerve-wracking. You should sell to a trusted gold buyer. If you’re new to selling gold, check around before you accept an offer. You may be in a hurry to liquidate your asset. However, make sure that whoever you sell to is trustworthy and on your side.
How Much Money Will I Get?
The number one question on your mind when you are looking to sell gold is: How much money will I get? If you calculated the melt value, you should have at least a basic idea of how much you will get. However, the premium is often the big question mark.
Coins have a greater fluctuation than gold bars. However, on the flip side, gold bars are often larger and higher karats than coins. Coins fluctuate because some are collectibles or of historical value.
There is (unfortunately) no one answer to how much money you will get when you are selling gold. The best thing to do is get multiple offers from trusted and knowledgeable merchants.
When should you Sell your Gold?
The best time to sell gold is when you are ready. Some people never want to sell the gold they have. They like holding onto it because it is a value-backed currency. When people are feeling pessimistic about the economic future, typically, they look for more gold. This causes the market value of gold to rise.
There are always personal reasons to sell gold. For example, you may be wanting to liquidate cash for:
- A down payment
- Help with college expenses
- Pay off mortgage
- Living expenses in general
The best time to sell gold is when the spot value (or market value) is at a high. The market fluctuates all the time, so keep an eye on it if you’re looking to sell. Like any stock or investment, the market is never predictable. It could rise the next day or decrease the next day.
What are the Best Places to Sell Your Gold for Cash?
You’ve decided it’s time for you to sell your gold for cash. The next question is: where should I sell it? Who can I trust? Where will I get the best offer?
Our favorite option for selling gold bullion is Abe Mor. This is a real business in New York that opened up to the online world. This makes them a reputable and trustworthy online retailer. They also make it easy to get an offer. You can also try their online calculator to get a quick price quote.
When you request an offer from Abe Mor, they send a secure shipping kit that is insured by them. The shipping is free. If you do not accept the offer, they will ship it back (also insured by them) for free.
As always, we suggest you do your research and read reviews for yourself. On BBB, Abe Mor is rated 5/5 stars. On Yelp, Abe Mor is rated over 4.5/5 stars. A common thread through the reviews is a high offer price compared to others and easy-to-reach customer service.
Local Gold Bullion Dealers
Your local pawn shop will likely result in the least profit for you. If you are determined to sell locally, look for a reputable bullion merchant. The best way to find one if you are new to the area is to ask around. Read a lot of reviews on the merchant. Check them out on sites like BBB and Yelp to know how people’s experiences have been.
Online Gold Bullion Dealers
Other than Abe Mor, there are other online bullion dealers. eBay has its own bullion marketplace. People tend to be warier of this market because of the risk of counterfeit products. Therefore, profit tends to be lessened.
There are a couple of other online bullion dealers. We encourage you to do your research before selling to ANY online marketplace. You can tell a company is legitimate based on:
- Reviews online
- Ability to get a hold of customer service (a real person)
- A real business address
Researching this will give you a good idea of who you are working with and if they are reputable.
Your gold coins and bars have a lot of value and are a safe investment. When you have determined it’s time to sell your gold, you have quite a few options. There’s a bit of upfront work to make sure you are getting the best offer possible. Once you have an idea of what your gold will get you, it’s time to find your preferred bullion merchant. Then, sell your gold and liquidate your assets!