Selling Gold: Tips to Avoid Being Taken

gold bullionsBuy gold, people say, but how do you sell it?

Buying and selling gold are two different things. There are many things you need to consider when buying gold bars and coins, much more when selling it. You want to make sure you’re dealing with a reliable person and you got the price and weight right. With the uncertainty of the financial market and with the prices of the precious metal hitting records, selling gold products has never been both easier and riskier at the same time. You can wind up with less than its full value if you’re not careful. Follow these tips when selling gold to avoid getting taken:

Shop Around

Similar with buying gold bullion and coins, start locally when selling gold products. No matter where or how you ultimately choose to sell, it’s better if you start in the local market. Take your gold bullion or coin to a reputable pawn shop or jeweller and ask them for an estimate. Local jewellers and pawnshops give an estimate for free, so take advantage of their services. That way, you’ll have a base price in mind when you check online bids and sales. Don’t forget to check two to three pawn shops so that you can compare prices.

Keep an Eye on the Scale

The Trading Standards Institute verifies the accuracy of the scales used by jewellers and pawnshops, but not hotel or house party buyers. Keep an eye on the weighing scale if you’re selling your gold to these buyers, especially if you don’t know them well. As with buying gold bullion and coins online, you need to pay close attention to how buyers weigh their gold. Jewellers value gold not by ounce, but by the Troy. While most buyers pay according to the gram, others use a system called pennyweight, which is equivalent to 1.555 grams. When selling gold, make sure you’re not weighed by pennyweight and paid by gram, as that would allow the buyer to get more gold for less money.

Beware of Scam Artists

Authorities and gold investors and associations warn gold sellers about doing business with transient gold dealers, as some of them are dishonest. These people run ads promising high prices, and set up shop. After getting jewellery and coins from sellers, they disappear, often leaving their victims unpaid or underpaid. So before you sell gold bullion or coins, whether online or at local shops, check with the Offices of Fair Trading first and see if the buyer has existing complaints. Check the buyer’s credentials as well. Legitimate buyers have a license from the state to buy and sell gold products.

To get the best value for your gold investment, shop around, verify the scale, and make sure you’re dealing with a reliable and trusted buyer.