Finance

How to trade gold bullion for cash

For centuries, gold coins have been used as money. Gold coins are valued for their purity or gold content and their aesthetics. If you have gold bullion coins to sell, you should do some serious research about the coins you have and about the gold market itself.

Introduction to the gold market

With the latest gold price peaks and the record highs that this precious metal has been reaching, the number of gold buyers has been increasing. There are more gold bullion dealers now than there were before along with. These peaks have come with significant volatility that has had a lot of market watchers keeping their eyes on the movement of the precious metal. For many, who found themselves in financial straits, gold has proven to be an excellent asset to own. Gold bullion has definitely been attracting a lot of attention from people who were looking for a safe haven for their money as well as people who needed to raise money to get through these difficult times.

Why is gold bullion so valuable

Even with most of the gold output going to the jewellery industry and high-tech businesses, gold is also an important basis for a lot of traders and investors. The price of gold has also proven to have a significant impact on the price of other precious metals like platinum and silver.

Gold is not weighed the same way as other commodities. The price is quoted in dollars per ounce but this is not an ordinary ounce but a troy ounce. While an ounce is equal to 28 grams, a troy ounce is 31.10 grams. It is crucial to keep this in mind when figuring out how much our gold weighs and how much you should be getting for it.

Gold coins vs Gold bullion coins

Gold coins are different. There are gold coins that are purely for collectors and are valued for their aesthetics, rarity, and popularity and then there are gold bullion coins. You need to be able to determine which kind of coins you have. Gold bullion coins are usually minted by government mints and are 99.99% pure. These are often used as legal tender by their respective governments. Whilst the price of numismatic gold coins might be subjective, however, the price of gold bullion coins can be much closer to the current gold spot price because they are made from the finest gold.

There are some things you need to do to get the best price for your gold bullion

#1. Understand how gold is weighed

The weight of gold determines its worth. This is true whether you are selling bullion, ordinary gold coins or gold jewellery. Gold is measured in troy ounce and 1 troy ounce is equal to 31.1 grams. Gold bullion coins that come in 1oz weights are easy to figure out. Most coins have weights on them. It gets tricky with other gold products that need to be weighed. A regular ounce is equivalent to 28 grams.

#2. Know your bullion

Knowing your bullion coins will help get you the best price. There are some gold bullion coins that are more in demand than others. Having gold bullion coins that are in demand right now will get you a better price.

#3. Do not accept the first offer

As mentioned before, the number of gold dealers has grown significantly over the last couple of months. This is good because it means there is more competition out there. If you have gold bullion coins to sell, you will find that there are a number of bullion dealers out there who would love to get their hands on your gold bullion. Shop around, compare offers and choose the one that pays the most.

Selling gold bullion can sometimes take some back-and-forth negotiations. This is why some thorough knowledge on your side is important. If dealers get a sense that you know what you have and what it should be worth, it puts you in a position of power than someone who is clueless.