Selling Gold and Silver – 10 Important Considerations

When it comes to selling precious metals, there are several things you need to consider. We are lucky we live in an age where there are so many options available to investors and selling gold and silver at the best rate is relatively easy. However, if you’re not careful, it is very easy to get ripped off, particularly if you’re not sure what you’re doing. Here are 10 important considerations to consider when selling gold or silver.

1) Find out how much your gold/silver is worth before you sell it

Most dealers will always pay less than the spot price for your goods as they need to make money themselves. It’s always a good idea to get an idea of what your items are worth before you sell them, so you get a fair price. Try and do your own research as much as possible before selling your gold and silver, and if you need a rough idea of its value then there are gold/silver value calculators online that can give you the current value of your gold/silver per gram.

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2) Take note of futures prices

Futures prices are different from the spot price and show the predicted value of gold for some time in the future rather than their current value. Futures prices can only give you an indication of how well gold and silver are expected to perform, however, it is still worth checking futures prices before deciding to sell, as it can give you an idea on how well the market’s performing.

3) Monitor exchange rates as well as gold/silver prices

Since gold and silver are priced in US dollars, it is important to look at how well your currency is performing against the dollar before deciding whether to sell. It is not enough to simply look at the current value of gold/silver because if the currency your trading in is weak against the dollar, you may find that you’re not making as much profit as you thought.

Selling gold and silver
Gold and silver coins

4) Should you sell on-line?

The internet has created many opportunities for investors to buy and sell online, however, there are risks involved with trading on the web. Whilst there are a huge number of traders and dealers on-line, there are also a lot of scams and companies looking to rip you off. Make sure you do your own research before selling online and shop around for different quotes. You can sometimes get better prices for your goods online as dealers have fewer overheads to pay.

Don’t be fooled by the several ‘cash for gold/silver’ schemes out there in the market. Most of the times, these are unscrupulous brokers who will pay you far less than what your precious metals may be worth. Also, it may not be safe to put your gold in the post and send it to these traders. Always trade with a well-known dealer who has a clean track record. There are several good online traders in the market today. It’s worth doing your homework in order to identify a couple. In the same vein, it’s better to develop a relationship with two or three good brokers, rather than stick to just one. This will give you the advantage of being able to shop around and lookout for the best deal you can get.


5) How liquid are the goods?

When purchasing gold or silver to sell, it is important to think about the liquidity of the goods before you buy them. In other words, how quickly or easily can you convert them into cash. Both gold and silver are considered liquid commodities, however, depending on what form you buy it in, it can sometimes be more liquid than others. For example, bullion coins are typically much more liquid than numismatic coins as the market tends to be less volatile and it isn’t exclusively coined collectors who buy them. Silver is also more of a liquid asset than gold. This is because it is much more affordable for most people, and therefore there are more buyers out there.

6) Sending by post

If you’re planning on posting the goods to a buyer, then you should always check first to see if your courier allows the transportation of gold or silver and whether the goods are ensured in the event of loss or damage. Most couriers do not insure gold or money, this means that if there’s a problem you probably won’t get your money back. Always make sure your parcel is tracked when sending and that they are “signed for” on delivery.


Selling gold and silver
Three Gold Bars

7) Capital gains tax

Capital gains tax applies to everything you sell, exchange or have made a profit on. If you make more than £12,000 profit on any items you’ve traded in the financial year, then you will be subject to pay capital gains tax on anything over that amount. Certain bullion coins are exempt from CGT tax altogether in the UK. These include any coins produced by the Royal Mint that are considered British legal currency. For example, silver Britannia coins are exempt from CGT.

8) Don’t expect to get the spot price

You will rarely be offered the spot price when selling gold or silver as dealers are looking to make as much money as possible. Normally a dealer will have a buying price and a selling price. If you’re selling goods to the dealer you will always get less than if you’re buying from them. This is known as the spread.

Selling gold and silver
It’s best to shop around for the best price when selling gold bars

As a buyer or seller, it’s important to understand the role that premiums play in the price of gold and silver. The spot price is really a guide price in the market that is stated in USD per ounce. Of course, on any given day, you will need to convert this price into GBP to understand it better. The good news is that many reputed UK brokers will already have the Sterling price up on their websites. Now, when you buy precious metals, you will pay a slightly higher price margin than the spot. Likewise, when you sell, you will receive a slightly lower price than the spot price at that point in time. Of course, these premiums can vary depending on what you’re buying or selling. For example, if you are buying gold coins that are rare and have numismatic value, they would command much higher premiums due to their age and market value.

Insider's Guide to gold and silver

9) Avoid the spread

The difference between the price a dealer pays for your goods at and the price they sell them for is known as the spread. One way to maximise your profit when selling gold and silver is to try and reduce the size of the spread through clever investing. The size of the spread can vary dramatically from dealer to dealer so always look around before buying. The spread is also considerably lower if you hold your gold in allocated storage with a bullion dealer rather than trading in physical coins.

10) Selling overseas

Don’t forget that when you sell overseas, the laws of the country in which you sell will apply to the sale. Always remember to check any rules and regulations that may be applicable if you plan on exporting gold abroad.

Selling to Physical Gold

Here at Physical Gold, we guarantee to buy back any gold and silver we sell. You can sell gold and silver very simply through us. Depending on current stock levels, we are also happy to buy any gold or silver you’ve bought from other vendors. Please check our website for up-to-date price guides and call us on 020 7060 9992.

Image sources: Pexels and Flickr

20 replies on “Selling Gold and Silver – 10 Important Considerations”

I like how you mentioned that most dealers will always pay less than the spot price for your goods as they need to make money themselves. My dad has collected gold and silver coins for many years but now he would like to sell them to take my mom on a trip. I will let him know to monitor exchange rates.

I need some extra money, but I’m not sure how to get it without getting a loan. I didn’t know that you can sell gold for such a good deal! I’ll be sure to find someone reliable who can help me figure out how much my gold is worth.

I do agree that before we sell gold, it is important for us to evaluate the market value. It makes sense as we certainly want to sell it when the market value is favorable. The other day my sister said she is looking for a scrap gold buyer. I will remind her to analyze the market prior to choosing a buyer.

My cousin has been thinking about selling her extra gold because she needs some extra money for a project. She would really like to get some help from a professional in order to make sure that she can get the right value. I liked what you said about how she should go with someone that has a clean track method that she can identify with a little research.

My aunt has been thinking about selling some gold coins that she got from her grandfather because she needs to pay for rent. She would really like to sell them to a professional in order to make sure that they get the right value for them. I liked what you said about how she should see how well the market is performing before selling her coins in order to determine if she can get a better price.

I do agree that it is important for us to consider the future prices before planning to sell or buy gold. The other day my sister shared that she is planning to invest in gold. I will remind her to look at the future prices to be safe.

My sister has been thinking about selling some gold because she needs to pay rent, and doesn’t have any immediate money. She would really like to get some help from a professional because it will ensure that she will have the right value for her coin, and be safer. I liked what you said about how she can convert them to cash, and how it can be safer, and where she should sell them.

Thanks for the tip to not expect to get the spot price every time. I am new to this but I figured I wouldn’t get that price. I’d have to bargain for it.

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I like that you mentioned looking at how well your currency is against the dollar before selling. My brother sold a gold watch of his a while ago and then realized that he could have gotten $50 more if he had waited a week to sell it. I will tell him to monitor exchange rates next time so he can get the most profit.

I like that this post shared that when looking to sell precious metals, it is important that we ensure we reach out to someone with experience and knowledge. It makes sense as that way, we will be guaranteed that we sell it at its proper value. I will definitely remember to check on the value before selling it.

I appreciate it when you said that both gold and silver are considered liquid commodities, however, depending on what form you buy it in, it can sometimes be more liquid than others. My brother is thinking about where to put his saved money for investment. I will recommend to him to invest in gold.

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My uncle has been thinking about selling his coin collection that he got from his grandmother in order to pay for his daughter’s school tuition. He would really like to sell them to a professional in order to make sure that he gets a good price. I appreciated what you said about how he will have to pay capital gains tax on anything he sells, or makes a profit on.

It help when you said to know what future prices will be. My brother was at my house yesterday afternoon for lunch, and he talked about how he and his wife want to start selling some of her gold jewelry since she never wears it anymore. I’ll pass these tips along to them as they search for a place where they can sell gold jewelry.

Thanks for the reminder that it’s important to also consider the taxes that will be involved when planning to deal with gold investments. I’d like to find scrap gold buyers soon because I have a few damaged pieces of jewelry that I hope still have value. Getting them appraised soon will be a good idea.

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