Liquidity should always be top-of-mind when investing in physical bullion. Precious metals offer diversification benefits while protecting your portfolio against financial collapse, inflation and other economic disasters.
But when the time comes to sell your gold or silver, how do you do so without incurring a loss?
Pawnshops
Though they have an unfortunate reputation, pawn shops remain an appealing solution for many seeking quick cash. You may sell almost anything of value – including silver bars – and receive payment. But keep in mind that pawnbrokers exist to make money; therefore they will likely offer less than its true worth in return.
Before making a decision, it is wise to shop around and visit several pawnshops before making one final choice. Experienced pawn brokers at more established shops can often better understand what your items are worth; their reputations tend to be better as well; additionally, these shops must abide by state and federal regulations regarding pawnshops in order to provide secure storage of items for buyers while being managed responsibly throughout their process.
Auction Houses
No matter why you need to sell precious metals – for home purchase, tuition payments, or simply personal indulgence – it is vital to choose the appropriate buyer. Peer-to-peer sales or meetings arranged between strangers must be avoided as scammers exist who will take advantage of your urgency to sell.
Reputable dealers in the Precious Metals industry will buy your items at a fair price and provide you with a receipt of sale. They may also require valid identification from customers to provide extra safety and security.
When the time comes to sell physical precious metals, be aware that they’re more liquid than most people imagine. You can purchase rare coins and bars at slightly above or below spot price (known as spread). This liquidity is one of the primary draws to physical precious metals for investors.
Online Auction Sites
Online auction sites are an ideal option for selling bullion or commonly held gold coins, while it is best to consult with a reputable rare coin dealer when selling rarer pieces or numismatics.
Many pawn shops, jewelry stores and coin dealers will list their inventory on reputable online auction platforms like eBay or Etsy to sell it at auction. Although these sites have proven effective for some businesses, there can still be risks as opportunists can exploit inexperienced or unaware sellers who could become targets.
Estate sales offer another excellent way of liquidating gold. Most often, family members will only keep sentimental items and sell off everything else – which provides you with an opportunity to find an interested buyer and receive an accurate appraisal of its value. As with pawn shops, make sure that you do your research beforehand to find an experienced buyer who can give you close to its melt value in return for selling off bullion coins or bullion bars.
Reputable Dealers
Gold and silver investments can be highly rewarding investments; however, some investors may eventually need to liquidate these assets. There are various methods available for doing this, with working with a dealer that specializes in precious metals being the safest. Such dealers specialize in trading bullion instead of jewelry or scrap; therefore they have an accurate grasp on what your bars and coins are worth.
Avoid pawn shops and online marketplaces offering cash for gold; instead, find a dealer with a proven record for fairness and quality service. Before taking your coin into any dealer, ensure they have been cleaned, and compare buyback prices before selecting your best fit. Ideally it would be beneficial to choose one capable of handling larger volumes than local shops – this will allow the dealer to properly assess each piece as soon as they come through their door, improving chances for accurate appraisals.
