Many people are looking to own gold these days. Owning gold is a form of security, one that is needed in a world that can be extremely riddled with crises. If you own a piece of gold jewellery, gold bars or nuggets, or anything that is gold, you might want to consider selling it.
When you sell gold bullion, you receive a significant amount of cash and considering that gold’s price is constantly on the rise, you might just be surprised by how many dollars richer you can get after you have made a sale.
But before you sell your gold items, you need to consider a few things. Here are a few of the factors you need to think about before selling:
First of all, what is gold bullion?
The word ‘bullion’ simply refers to bars, ingots, or coins of precious metals such as gold and silver. A gold bullion serves as a dependable store of value (as opposed to cash) and a form of purchasing power (since it is liquid, it can be converted to cash.) Gold bullions are considered a dependable store of value since it generally does not depreciate, unlike cash where the value of the currency is dependent on economic factors.
Not only does gold retain its value, but it also retains its quality. Over 6 billion ounces of gold have been mined in history, and almost all are still intact and usable today. They have either been melted to create jewellery or art, and to answer the needs of financial institutions down to the average casual investor, they are melted into bullions to store as purchasing power.
If you are looking to get into the business of buying and selling precious metals, you are generally expected to trade them in the form of bullions. A gold bullion's mass and fine gold content determine its value, which may also be affected by how the economy is behaving at a given time.
Having gold in bullions is the most efficient and cost-effective way to trade or store gold. The most obvious reason for this is its physical form itself: as mentioned above, its mass and content determine its value, and it should be easier to determine both by looking at the numbers engraved on the bullion and by simply holding it in one’s hand.
If the goal of the buyer is to store their gold as a financial security strategy, bullions should be easy to store in a special storage facility. They would also be much easier to count and maintain. On the other hand, if the buyer is looking to melt gold to be used another way such as in jewellery or manufacturing, purchasing them in bullions would also be the more cost-efficient way.
Things to consider
The kind of gold bullion you have
Gold bullions are investment-grade gold. While purity is a factor that buyers will take into consideration, whether your bullion is at 22 karats or 24 karats does not matter so much since it will be priced based on the amount of gold in the bullion anyway.
The most popular form of gold bullions available in the gold market today are the 1-ounce old coins, which are issued by government mints. The government mints that issue gold bullions are those of the United States, Australia, Canada, China, the United Kingdom, and South Africa, to name a few. Every coin dealer or gold buyer accepts these standard-weight bullions.
If you do not own a gold bullion, consider the gold you do own. If what you have instead are pieces of gold jewellery or other gold items, you can still sell them as pieces gold that may be melted down to create bullions or other gold items.
The quality of your bullions
The better the quality of your bullions, the higher their value becomes. If your gold coins or bars do not show any sign of wear and tear, they are likelier to sell faster and at a higher price. Avoid touching your bullions with your hands, and do not attempt to clean them even though they may need cleaning. If they came with a protective covering when you first bought them, it would be best if you never removed it. This is not to say that bullions with minor signs of wear will not sell at all – they simply will fare better if they were in perfect condition. This is also referred to as Gem Uncirculated Condition.
The actual worth of your bullions
There is a way to know the worth of your bullions before you decide to sell them. As mentioned above, you can expect a lower price if your bullion has signs of use on it (yes, even fingerprints.) You can go on the internet to search for what the price of gold currently is. The price is measured as dollars per ounce.
The numbers change every day, and you can expect that a dealer will base the price they offer you on that daily rate. However, if you do not equip yourself with that information, you may be given a number that is much lower than gold’s current price. While it is true that dealers will generally buy your gold for less than what they will sell it for – just a natural buy-and-sell concept – you still have to pay attention to the difference of those numbers. Watch out for scammers – pricing is one of the ways in which they can scam you to sell gold bullion at your disadvantage.
Finally, you can check with a reputable dealer on what the price of your bullions might be. Gold buyers often offer a free estimate when you take your bullions to their shops. Ask around in your community; go to dealers whom people already trust and have worked with. Most of the time, gold trading functions best on a who-knows-who system, just like it did in the earlier centuries when merchants flocked to ancient markets to trade gold.
Looking to sell gold bullion? Talk to us today
We at Gold Buyers Brisbane are eager to offer you the best price for your gold bars, ingots, coins, and other pieces of gold. Get in touch with us today. Call us at +617 3349 3535 or +61449 159 617 or email us at gold182122@gmail.com.