How To Avoid These Top Mistakes When Selling Gold

I recently had to sell some gold coins and jewelry. Although I knew the spot price of gold – and had the items professionally appraised – I didn’t know exactly how much they were worth until I sold them.

It’s far too easy to get fleeced when selling gold. There are a lot of unscrupulous operators out there. You have to be careful.

Here are some things to keep in mind when selling gold:

1) Get a referral for a trustworthy buyer. I received a recommendation from a professional appraiser who dealt with only a handful of dealers. I had to drive a long way to make the sale, but it was worth it. The appraiser was also referred by my lawyer.

2) Know who you’re dealing with. A lot of operations will say “they buy gold.” But will they give you a fair price? How long have they been in business? The better dealers have been in business for decades, not days.

3) What kind of certification does the dealer have? They need to have some nationally recognized credentials. “To avoid potential scams, such as counterfeits, and to avoid paying too much when you buy or receiving too little when you sell, investors absolutely must know the credentials of the bullion dealer,” cautioned Professional Numismatists Guild President Richard Weaver. “If you don’t know gold, you’d better know your gold dealer.”

4) Know the Spot Price and Numismatic Value. Regular bullion will sell for the current spot price, which you can search with a smartphone. Collectible gold coins also have a numismatic value – a small premium. “Know the current spot price of the precious metal you want to buy or sell. Bullion items, such as the American Eagle, Canadian Maple Leaf, and South African Krugerrand, usually sell for only about three to five percent above the current spot price depending on the quantity purchased,” explained Weaver.

When I went to sell my coins and jewelry, it helped that I had a professional appraisal in hand. That really helped in getting a fair price. Of course, some of what I possessed had little or no value to a dealer, so I knew that going in.

The combination of a reputable dealer, professional appraisal and knowing the spot price before I began selling was essential. This homework literally pays off.

Courtesy: FORBES