There are a lot of gold dealers or gold buyers who want to buy your gold. These days they seem to be everywhere you turn, at your local mall, on TV in newspaper on the internet. It has become very easy to find a gold buyer these days but if you have gold bullion and you are new to the trade then you should tread carefully. Not all gold buyers are equal. Before you sell bullion Melbourne, you should do proper research. The problem with gold dealers is that that there is little regulation, virtually anyone can open a shop or create an impressive website and have good salesmen who are very convincing. So, how do you vet gold dealers?
The internet has made it easy to access information that isn’t that easy to access. All it takes is a simple Google search. Just type in “sell bullion Melbourne” and you should be able to find out what the principals of a company are. If the information is not included in the company website, call and ask but if you are still unable to get that information then walk away. The best companies to deal with those that are transparent and unafraid to share information. When they aren’t then you have to wonder what they have to hide such as lawsuits and other shady dealings.
A website may have nice words, even go as far as posting favourable “testimonials” but if it sounds too good, too perfect then you should do a deeper search on consumer review sites.
Price is important but what else does a company offer? For instance, if you sell bullion to an online buyer you need to check how available they are. Do they have a chat function on their site or do they require you to communicate via email? How quickly do they respond to queries? If you are satisfied with the lines of communications. Find out what the process is.
Take your time when choosing a gold dealer to sell to. You should at least get three quotes before you choose a specific company. This way you will make sure that you are getting the best possible price that you can get. You will have to ship the bullion. Insurance is important. That means vetting the shipping company that the company uses and making sure that your bullion is insured against loss or damage. The dealer will typically require you to ship the bullion within 24 hours of accepting the offer. When the bullion is delivered, the buyer will verify that it is real gold and that it is exactly what you promised. The dealer will then pay you the agreed price using your preferred method of payment.
Whilst on the subject of price- when you sell gold bullion, you should know what the daily spot price is but also what the buyer has set as a spread price. The spot is not constant, it changes all the time and you might want to keep an eye on it. The spread is simply the price under spot that the dealer will pay for your gold, so it differs from dealer to dealer. The spot price might look attractive but remember that most like most commodities being traded on various markets, bid prices are often lower than offers. This is simply because sellers want the highest price they can get, gold buyers want to buy gold at bargain prices. You should look for a dealer who offers spreads that are lower than 5%.
Gold does not behave any differently to other commodities that get traded. You should expect to get less when you sell than when you buy because bid prices will always be less than offers. It’s simple economics – as a seller you might want to get a high price but gold buyers are looking for bargain prices. No one actually sells and buys gold at its true value. You can only tell if you are getting a good deal if you know and understand the bid price. Most reputable gold dealers do not put the spread up for their customers but you can ask.
It may take longer to sell bullion online than to sell it to a local dealer but most online dealers offer competitively higher prices than local dealers. The reason is that they do not have to deal with overhead costs that brick-and-mortar establishments have to deal with.