Buy & Sell Gold
At a time when economic fluctuations are exerting ever-increasing influences on one’s life, new schools of thought have recently been established to plan for a secure future.
The idea of buying gold has emerged as a creditable option – but is still tied to various influences that are sometimes not always easy to navigate. Gold is fundamentally considered a valuable commodity. And so the thought of wanting to sell acquired gold bars is obvious sooner or later. However, the process is accompanied by many questions: To whom do I sell? What price is suitable? Where will I get comprehensive information? Being able to sell your own gold bars is not always as easy as you might think.
Keeping an eye on gold prices
An obvious decision does not always ensure the easiest and best option. Often, the first train of thought leads to selling at the nearest bank branch. However, banks do not always see the purchase of gold as a particularly lucrative business and link the transfer to certain conditions. As a rule, direct sale to the bank is only worthwhile if an account already exists there – and at best the gold bar was purchased in that branch anyway. It is often overlooked that the price of gold can vary greatly. There are logical relationships that make it easier to sell gold bars at the right time: The higher the current gold price, the higher the demand. If, on the other hand, the price of gold stagnates or even falls, it is advisable to temporarily refrain from selling. After all, no one is helped if the amount of the sale is less than the amount of the purchase.
Security when selling gold
A point that is often ignored is also the security of gold trading. In order to prevent money laundering, among other things, a registration obligation applies in principle from a value of 14,999 euros. If larger amounts of gold are involved, proof of one’s identity is required from the dealer. Amounts that do not exceed the value are exempt from these obligations and precautions.
The agony of choice
Precious metal dealers form in the vast majority of cases a reputable way to sell gold bullion. The advantage is that there is direct contact with mints that can accurately determine the value. Nevertheless, care should be taken to obtain a good price. A comparison with other dealers offers itself, in order to make black sheep out.
Specialized dealers have, in addition to gold bars, especially on investment coins and are available with advice and assistance. Compared to other institutions, prospective sellers can benefit from an expert opinion. Often dealers take the sale into their own hands for a commission. Although the final price thus naturally falls somewhat short of value, there is no concern at all with the right professional.
The technologized world of today allows for more options to sell gold bullion. Very popular are various Internet dealers or online auctions. Even auctions or flea markets can fetch considerable prices now and then. Nevertheless, it should never be forgotten to inform yourself in detail in advance.
Quite a few investors are thinking about buying gold bullion and thus expanding their investment strategy to include the precious metal. There are good reasons for buying gold, but it is important to wait for the right time.
Where to buy gold bars?
The purchase of gold bars is possible in special gold sales outlets as well as via the Internet. But investors can also buy gold bars conventionally in a bank branch, most financial institutions keep a small amount of gold in stock. Prices are largely based on the official rates, although individual sales outlets may deviate slightly from the official rate, depending on the costs they incur. Thus, it is worthwhile to compare prices before buying gold. Gold bars are offered in different sizes, many private investors prefer the relatively small size of ten grams per bar. The smallest size of gold bars that can be purchased in stores is one gram, but the corresponding gold bars are more expensive due to the high cost of production compared to higher units per gram and not all banks have them in stock.
The performance of gold bars
When investors buy gold bars, they hope for a price gain. In the long term, such a gain can be expected; in the short term, price losses are possible. Unlike most other types of investment, the speculation period still applies to the purchase and subsequent sale of gold, so that gains do not have to be taxed if there is at least one year between the purchase and the disposal of the gold bars. Another advantage for the consumer is that gold bars are not subject to VAT, unlike bars of other precious metals such as palladium and silver. During the holding period, the gold bars must be kept safe, incurring costs for renting a safe deposit box or installing a safe. This does not apply if investors buy only one or two small gold bars and the total value of their jewelry and investment valuables is covered by household insurance without additional security measures. In principle, gold bars are considered inflation protection, the prerequisite for a successful sale is to find a buyer even in times of crisis. In normal economic times, the return of gold is easy, because financial institutions not only sell the bars, but also buy gold bars at the request of the investor.
Gold bars as a gift?
Investors can not only buy gold bars for themselves, but also purchase them as gifts. Small gold bars of one gram are suitable as a birthday gift or many other purposes, while the size of ten grams of gold are more suitable for special occasions such as a confirmation, the youth dedication or a round birthday. Gold jewelry, like a gold bar, basically retains its value. However, when purchased, this value is made up of the price of the gold and the processing costs, while its owners often only receive the value of the gold as proceeds when it is sold. This is true in any case in the subsequent sale through gold buying agencies, so that gold bullion to buy most certainly maintains the value.
Investing money in precious metals is a matter of trust. Buying gold jewelry is no exception in this respect. Therefore, it goes without saying that a purchase should only be made from a certified dealer. When buying from private individuals, therefore, the imperative of particular caution applies.
Is the origin known? Is the quality or authenticity of the jewelry confirmed by certificates? Is there a guarantee for processing defects? Buying gold jewelry from specialty stores is risk-free in this respect, but this is not always the case with friends or perhaps on a foreign vacation beach. And even if the gold jewelry traded under the hand has authenticity stamps, you can not conclude with certainty that it is genuine. This is because they could also be fake. Therefore, the principle is: “Only buy gold jewelry in specialized stores.”. After all, trained specialists are the only ones who can determine the authenticity of gold jewelry by means of chemical analysis and offer the buyer security in this regard.
Buying gold jewelry
But not only the authenticity of the gold jewelry is important for the buyer. In addition to the purity of the gold, the intended use also plays an important role. If the ring or chain is to be a proof of love, then there is nothing wrong with a personal engraving. After all, the love pledge should serve the future owner for eternity as proof of infinite loyalty. Who approaches it less romantically, puts with the gold jewelry buy more value on its stability of value. However, since jewelry, unlike gold coins or gold bars, lives more from the quality of workmanship than from the gold content, it is important to take other things into consideration. Has the gold jewelry been produced only in limited editions? Does the design come from a well-known artist, from a world-renowned jeweler? Or is it a relatively cheap mass-produced item? If the eternal love turns out to be a mistake or if there is no special processing, a not inconsiderable loss of value is to be expected in a future sale. Buying gold jewelry is therefore not a simple matter.
Many rings or necklaces are not only made of gold. In many cases, precious stones are also processed in the work of art. This has made the labor-intensive manufacturing process more expensive, but what about a sale? Is the auction house or gold dealer also interested in the diamond or ruby? Or will only an insignificant amount be paid for the sparkling sapphire when the engagement ring is sold?
The offer of gold jewelry, which one finds on the markets is hardly manageable. If it is not a spontaneous purchase – for example because the woman of your dreams has finally crossed your path and the purchase of the engagement ring simply cannot wait any longer – the purchase should be well planned. In expensive shopping streets, more is naturally demanded for a piece of jewelry. Away from city centers, on the other hand, considerable discounts are often available when buying. But here, too, caution is advisable. Buying gold jewelry – who does not think about it when he is abroad. Often the tax burden is also lower there. But beware! It should be taken to heart that when importing duty-free allowances are to be observed and also possibly import taxes or other charges are to be paid.
Selling gold jewelry
The prices for gold, silver and other precious metals have been at an all-time high for quite some time. That’s when the old gold chain, which no one would wear today for fashion reasons, comes in handy to supplement the household budget. But anyone who wants to sell jewelry should not blindly trust the countless dealers and buyers, but before the sale in-depth study of the matter.
The alloy is decisive for the achievable price. Especially those who want to sell gold jewelry must be aware that fine gold is not used here. Instead, 333, 585 or 750 gold is often used to make gold jewelry. This means that in 1,000 parts, there are only 333, 585 or 750 parts of pure gold. Therefore, it should first be checked how much gold is contained in the old gold jewelry.
To do this, the chain, ring or bracelet is examined more closely. In most cases, the jewelry has a stamp indicating the alloy. Then the jewelry must be weighed. From the total weight, it can be determined what percentage of fine gold is contained. This gram number is multiplied by the current gold price, which can be found on the Internet. Only when this calculation is complete can an approximate price be determined when selling gold jewelry.
If you now want to sell gold jewelry, sell silver jewelry or convert other precious metals into cash, you should also consider where best to sell jewelry. Here, various contacts come into question. Gold and silver jewelry can be sold at the large gold and silver refineries. According to experts, fair prices are offered here, but discounts must also be expected, since the sold jewelry must first be melted down to extract the precious metal. In addition, gold and silver jewelry can only be sold here if larger quantities are available. It must be 50 to 100 grams of pure precious metal, so that the gold and silver refineries buy the jewelry.
As an alternative to the refineries, jewelry can also be sold at local dealers. Here, jewelers are the first point of contact, as they work seriously and have often been active in the market for many years. When testing for the content of precious metals, various tests are carried out, during which a reputable jeweler may well look over his shoulder.
Who wants to sell his silver jewelry, is also often on advertising flyers, flyers and newspaper ads. There the back room of the local boutique is used fast times for the purchase of the precious metals. From such offers however distance is to be taken. These dealers often act unserious and pay too low prices.
Therefore, it is essential to first thoroughly inform yourself about the prices that can be achieved. If the offers made by the buyers are too high or too low, an alternative should be sought. In principle, it is advisable to obtain three to four offers at once. This is because no dealer can offer the real precious metal price, since he must also pay for the cutting work at the refinery and pre-finance the transaction.
If the investor has decided to acquire real, physical precious metal such as gold, it is advisable to buy recognized gold coins. Buying gold coins as well as gold acquisition in general is advisable because the investor can usually find buyers for the precious metal again.
The investment form gold coins is suitable for small fortunes, which are best invested in coins gradually. For larger assets gold bars are recommended. It is advisable to purchase gold coins from own specialized dealers, not from commercial banks. This is because the selection is larger at gold dealers and the conditions are usually more favorable. If the investor wants to remain totally anonymous when buying gold coins, it is best to exchange gold for cash at a local dealer. Up to a sum of 15,000 euros, the lack of disclosure of personal data when buying gold is legal.
Investment tips when buying gold coins and the types of coins
As with capital investment in general, the investor should buy only as many gold coins as he can afford. That is, he should not be forced to sell gold to cope with a financial crisis. Buying gold coins is for long-term capital investment. It should be noted that the gold market is often subject to sharp price fluctuations, so the time of sale and purchase should be carefully considered. When choosing gold coins, the investor has to look at the fact that he can sell them again. Therefore, when buying gold coins, he should resort to well-known types of coins. In Austria, the Vienna Philharmonic and the Ducat are very popular, in Switzerland, for example, the Vreneli (available in various sizes). The Goldmark, however, is an option. Since 2002, 100-Euro coins with changing motifs have been minted – but these are expensive to buy and are no better known than the standard international gold coins such as the Krugerrand coin, the American Eagle or the Maple Leaf coin.
The price of buying gold coins
Apart from the degree of popularity, the price is decisive when buying gold coins. The Krugerrand coin, the Vienna Philharmonic and the Maple Leaf coin are the cheapest. In any case, the investor should use the Internet to view and also compare prices of various dealers and gold suppliers. Also the current gold rate should be observed regularly before buying the coins. The offers differ partly immensely. There are dealers who adjust the gold price for coins to the current gold price – others leave the prices unchanged for longer. In any case, for a meaningful comparison when buying gold coins, the investor should keep in mind and compare the total weight of the coins and their gold content. Everything revolves around the question of how much fine gold content is available at a certain purchase price, or how much it is worth at the current gold rate. The purchase price of gold coins should not be more than ten percent beyond the value of the gold. As a rule, a Krugerrand coin cannot be obtained for less than a price that is about 4 percent above the value of the fine gold in the coin.