Every now and then, you might want to sell Gold and Silver Bullion. For March’s tip, we’d like to talk about what’s the best way to do it.
How do you get the most for your metal? Bullion is fine and pure precious metals, i.e. at least 99.5% purity. When selling it, you need to be at least as knowledgable as whoever is buying it. To do so, that is to say – to turn your gold, silver, platinum, or palladium into money – you need to know the spot price of your metal, it’s purity, and the popularity of it’s form. Beyond these foundations, you also need a heavy dose of practical wisdom.
Never, for instance, should you sell bullion in a dangerous place or to a buyer you do not trust. You should always know exactly what your gold is worth in terms of metal content, and regardless of what people tell you, check it.
Canada’s 1oz Silver Maple Leaf Coin (from the Royal Canadian Mint) is a common example of Silver Bullion.
There are several “ways” to sell your bullion.
The least common way is to sell gold and silver bullion online.
While some people will tell you this is the safest method (in some respects it is safer), the real benefit is not that. Selling your precious metals over the internet allows you to sell to a nationally or internationally recognized company. You can hedge your prices over the phone and take a payment without much risk. Some basic tips are to get all confirmations, packing/postage slips, and confirmations of insurance. Beyond that, the online buyer (if they are reputable) will verify and pay you on reception. Normally, they will send you a cheque or bank wire. Should you choose the wire, be prepared to pay (or have deducted) up to $30 for it.
Another way to consider selling online is using a third-party (3P) marketplace. For example, eBay. Here you want to be careful you don’t get paid less than your metal price. On the other hand, you might get more if someone commits to a bid, and then the price drops. What you also want to avoid is a criminal transaction where the funds will be later withdrawn from your bank account due to having come from an illegitimate source.
The most common way is to sell gold and bullion to a local store.
The main reason most people prefer to sell to a local cash for gold store is convenience. Primarily, a local coin or pawn shop will pay you much more quickly. If you’re going to take this route, you also have the benefit of a safer place to transact. On the other hand, you’re likely to get paid less and may even have to bargain. Ideally, you might get an estimate over the phone. If you can make sure the store is reputable, you will probably not see a significant price change for reasons other than changes int he spot price. With that in mind, you should always remember that people buying gold and silver bullion are likely to try and lowball you.
The challenge comes up from the fact that you may have to travel quite a bit to get the best price. Most people don’t appreciate that the time and effort spent chasing down that last dollar cost more than the inconvenience is worth. You also need to determine what type of store you want to sell to. Generally, you want to go somewhere with higher volumes and a good reputation. With that in mind, if you’re looking to pawn it, a mall stand or kiosk is going to be of little benefit. You should generally avoid pawnshops as they won’t get you more than 40-60% of the value of your metal. Funny enough, most traditional shops won’t do much better than their pawn competition.
If you’re looking to sell gold and silver bullion in Toronto, Ontario, we recommend shopping around and looking at our reviews of the best Toronto gold and jewellery buyers.