Selling Gold Bullion: Physical Vs Online Gold Dealers

Invest in gold they say. Protect your wealth in times of crisis but what happens when you are going through your own financial crisis and you need cash. You definitely cannot take you gold bullion to the emergency room to pay from that emergency surgery you just found out you needed. You cannot pay your car mechanic in gold when your carburetor and you need a new one to keep your car on the road. Unlike most commodities, stocks and bonds, you can have easy access to cash if you bought gold bullion. It is easier to sell gold bullion that it is to liquidate stocks and bonds. So, where do you sell gold bullion:

Buy they said, back in 2008 when the markets were in freefall and the world was caught in the throes of a global economic crisis. The price of gold rose to phenomenal height. In 2011, it stopped at around $1,900/oz and those who sold their gold made incredible returns. In 2015, the price had fallen $1,050 and those who held out for the $2,000 were kicking themselves for not having the foresight to sell when the going was still good. So, here we are the price is once again going higher and people are getting more excited about gold, if feels like we should be talking about the options you have when you need to sell. 

The secret to investing in bullion? Just as you had to shop around when buying gold bullion, you should do the same when you have to sell – Shop around. There are plenty of gold dealers who are looking for your gold. Bullion in particular is more valued because it id gold at its purest and therefore commands more money than gold jewellery or scrap gold. 

Different bullion dealers will have different premiums (the additional amount charged over the spot price) on the gold they sell. Similarly, different dealers will pay different prices for the gold they buy. This is why it is important to review all the options available. 

You have three general options to consider:

You could sell to an individual, a local bullion dealer or an online gold dealer. 

Selling a big amount of bullion to an individual might be tricky unless you are selling to a friend or a family member or someone you know. 

Physical vs. online gold dealers

Online bullion dealers always list convenience as the major reason why you should consider them. They also claim that the pay more than local dealers. This might be true but you consider the cost of shipping and insurance, you may only be getting a few extra bucks when you sell to an online dealer. 

Physical and online bullion buyers will add about 2 -3% under the spot price for gold bullion coins like gold American Eagle coins, Canadian Maple Leafs, Australian Kangaroos or Nuggets, Chinese Pandas, South African Kruggerrands and other government minted bullion coins. An online gold buyer may pay a little bit more but you have to wait for payment whereas a physical dealer will give you cash or check on the very same day. You don’t have to ship anything anywhere or worry about the risk of things getting lost in transit or getting damaged. 

If there is no bullion dealer where you live, an online dealer might be the best option when you have to sell gold bullion.