There are several forms of gold investments-gold bullion, coins, and certificates of ownership. With gold at record prices, it is a lot easier to buy gold than to sell it (except for gold ETFs). Local jewelers, coin shops, and cable-television advertisers will buy your gold (and silver) but the price paid varies widely. Some buyers will only give you 10% of the meltdown value. Many jewelry stores pay about 50% of the meltdown price. Coins shops tend to pay more. The following steps should be followed to make sure you are getting a fair price:
- Check out potential buyers with the Better Business Bureau (BBB) and make sure the firm has a clean record and a grade of A- or better.
- Know what you are selling and research values online. 14 karat gold jewelry is only 58.5% pure gold so you won’t get the high gold price you hear about in the news.
- If selling coins, research prices online or use annual printed guides. You may want to have rare coins graded by an expert.
- Get at least two bids and let the dealer know that you are comparing prices.
- Start small. If you plan to sale a lot, sell a few at first to make sure your buyer meets your standards and that you are satisfied.
- Gold, silver, and coins are treated as collectables and are taxed up to 28%. Check with your accountant for potential tax liability.
- Insurance. Don’t rely on the buyer’s insurance. If there is a problem, you want your own insurance.
With gold at record levels, many people start looking through their jewelry boxes and desk drawers for items to sale. Hopefully, these tips will help you do so safely.