Preparing to Sell
Before contacting dealers, know what you have. Identify your bar's refiner, weight, and purity. Locate any documentation including assay cards, purchase receipts, and serial numbers. Bars in original sealed packaging typically receive better offers than loose bars.
Check the current gold spot price so you can evaluate offers. Spot prices fluctuate throughout the day, so check just before requesting quotes. Understanding spot helps you calculate what percentage above or below spot each offer represents.
Assess your bar's condition. While gold does not tarnish, bars can scratch or show wear. Significant damage may affect offers, though the gold content remains valuable regardless of cosmetic condition.
Getting Multiple Quotes
Contact at least three to four dealers for quotes. Major online dealers, local coin shops, and the dealer you originally purchased from are all potential buyers. Explain exactly what you have: refiner, weight, condition, and whether you have documentation.
Ask for quotes expressed both as a dollar amount and as a percentage relative to spot. This makes comparison easier since spot may move between quotes. Also ask about any fees or requirements that affect your net proceeds.
Be aware that quotes may be valid for limited windows. Dealers cannot hold prices indefinitely while spot fluctuates. When you receive a favorable quote and are ready to sell, act within the quote's validity period.
Evaluating Offers
A typical dealer offer for standard 1 oz bars from recognized refiners falls between spot price and 1-3% below spot. Offers significantly below this range may indicate the dealer perceives risk (unknown refiner, missing documentation) or simply offers less competitive pricing.
Consider the total transaction. A higher price offer with expensive shipping costs may net less than a slightly lower offer with prepaid shipping. Factor in insurance, shipping, and any fees to compare net proceeds.
For bars without documentation or from less common refiners, dealers may offer less or require testing before final pricing. In these cases, the upfront quote may be contingent on verification.
Completing the Sale
Once you accept an offer, the dealer provides instructions for shipping or in-person delivery. For shipped sales, dealers typically provide prepaid shipping labels with insurance. Pack bars securely and ship promptly to lock in your price.
Verify the buyer's reputation before shipping gold. Established dealers with physical addresses and clear contact information present lower risk than anonymous online buyers. Check reviews and verify the business is legitimate.
After the dealer receives and verifies your gold, payment follows. Methods vary: check, wire transfer, or other options depending on the dealer. Confirm the payment method and timeline before shipping. Keep tracking information until payment clears.
Tax and Record Considerations
Selling gold may have tax implications depending on your jurisdiction. In the US, gains on gold held over one year may be taxed as collectibles. Keep records of your original purchase price (cost basis) to calculate any gain or loss.
Some transactions may trigger dealer reporting requirements, though typical 1 oz bar sales usually do not. Consult a tax professional for guidance specific to your situation. Our article on gold bar taxation provides general background.
Maintain records of your sale including the date, price received, buyer name, and payment confirmation. This documentation supports tax reporting and provides a complete record of your gold ownership history.