Gold gold gold…Just the sheer name is mesmerizing and conjures up shiny yellow bricks, stacked neatly in a Swiss Bank vault. The question is, where to sell gold? And somewhere you can sell (or buy) gold with peace of mind…whilst making a tidy profit.
Not only do I know where is the best place to sell gold. Fortunately, I have a step by step process on how to sell your gold. But first, let me tell you a story…
Back in late 2006, I trawled the gold souk Dubai…my first real venture into precious metals and investing gold. I was actually over on a golf trip but decided to combine this with building my portfolio (if you could call it that back then). Armed with my calculator and notepad, I began to jot down the best gold price per gram. I say this, as I had to convert into troy ounces to compare against the gold price for that day.
Even though the gold price for the day was $623, each gold store was slightly different. Of course, they had to make a margin with their spread. The price of gold in Dubai is usually always quoted in 18, 21, 22 and 24K. However, I was only interested in 24K (fine/ almost solid gold).
Any reputable gold store should provide a certificate of authenticity or detailed receipt. That it is indeed 24K or 99.99 Au for that matter (and for selling at a later date).
I found my winner though (gold store at the best gold price).
As I say, this was my first taste of investing gold. I just wish I had bought more! A bloody great big shiny brick. You don’t have to travel all the way out to Dubai to buy (or sell) gold though…there are more local places that buy gold, or international places that buy online.
Why I’m Selling My Gold
Judging from the trend and the excerpt from the World Gold Council report below, I actually don’t think gold has hit a ceiling yet. There’s possibly a bit more growth.
However, one of my goals is to pay off some debts (mortgage). Hence, the extra cash will come in very handy.
Also, it nearly went missing when I moved house! Best to keep it in a vault or some official storage (rather than bury in the garden/ hide in the house).
As a side note, if you want to store your gold cost effectively and securely, then go here.
I did a lot of research with regards to places that buy gold…physical gold. I have to say, it’s a bit of a minefield out there. The key issues are:
- Actually receiving the price that was quoted (what you get in your hand/ bank, could be different from what was discussed)
- Positive reviews (trust)
How Much is Your Gold Worth?
Firstly, you have to work out how much your gold is worth, by doing a spot check. I check the BullionVault app on my phone. It’s 1326 US Dollars a troy ounce, on the 5th September 2016.
That’s 998 GBP a troy ounce, when I do the currency conversion on XE.com. As a side note, I used BullionVault for tracking the gold live rate, on a day to day basis…it keeps tabs on your little investment.
I paid 625 US Dollars on 9th November 2006. You can find out the gold price history on onlygold.com. That’s 329 GBP a troy ounce, when I do the currency conversion on XE.com again (I use the chart function this time, to pull the exchange rate from 10 years back).
100g (I have 100g gold biscuit) is 3.215 Troy Ounces.
So, I paid 1058 GBP back in the day.
According to my credit card statement (see below), I actually paid 1118.83 GBP (taking into consideration, credit card fees and exchange rates).
Hence, the real price of this gold today (5th September 2016), is roughly 3208gbp.
i.e. 998 GBP a troy ounce multiplied by 3.215 Troy Ounces = 3208.57gbp.
And this is your, ‘on the spot price’
3208.57gbp is what a gold exchange would put in their pockets. Hence, you would get slightly less.
Let’s Get Some Gold Quotes or ‘On The Spot’ Prices
Now to find places that buy gold. I Phoned up 3 local high street gold exchanges that came highly recommended by Yell. They all quoted around the 2900gbp mark. A difference of roughly 300gbp lower than the ‘on the spot price’ above.
I didn’t trust any of the ‘cash for gold’ adverts on TV. They have to make their money back on advertising somehow. Also, after much research on the web, I was dubious about their ‘on the spot price’.
Anyway, cut to the chase. After several days of due diligence and separating the wheat from the chaff, Hatton Garden Metals provide the best value (what they quoted, is what I received in my bank…and more) and a speedy and trustworthy service.
Hatton Garden in London, as in the famous Hatton Garden (safe deposit) burglary in April 2015.
You Have Gold to Sell?
For a local (British) buyer and seller of gold, Hatton Garden Metals worked out really well. As can be seen in my step-by-step process below. The transaction was carried out very quickly (over the course of a couple of days) and securely. What they quoted, they paid out…and more.
For global buyers and sellers (and for storing gold cost effectively), try BullionVault. They came in a close second.
Now you know where to sell gold securely, with a fast turnaround and put money in your pocket…I’m going to show you how.
12 Steps on How to Sell Your Gold
1. Go to, http://www.hattongardenmetals.com
2. Click on the, ‘Sell Gold’ tab at the top of the screen.
3. Then click on, ‘Sell Gold for Cash’ tab on menu bar or the large ‘Sell Gold’ graphic.
4. You have the option of selling scrap gold i.e. jewelry, gold coins…even scrap silver, platinum, and palladium.
5. In my case, I have 100g gold biscuit to sell. Hence, I go to the, ‘Sell Gold Bars’ section. Scroll down to 100g gold bar and type, ‘1’ into the check box. As I have only one gold bar/ biscuit to sell.
6. Press ENTER or scroll down to the ‘CALCULATE PRICES’ graphic. You will instantly be given an ‘on the spot’ price for your gold, with no obligation to sell and no need to enter your personal details.
7. You have the option of being paid direct into your bank account, PayPal account, be sent a cheque in the post. Or even paid in Argos vouchers. It’s totally up to you.
8. At this point, you will register with Hatton Garden Metals and set up an account. You can use this to track your gold sale and inquiries.
9. You will receive an automated message with a unique inquiry number, so you can track your order.
10. Now it’s time to send off your gold!
After some investigation, I found the Post Office to be the most cost effective and reliable service (as opposed to couriers). A lot of couriers either wouldn’t allow precious metals, or the insurance was very high (e.g.121gbp for a 100g bar).
The Post Office only insure up to 2500gbp, however, I was happy with this. The insurance was only 7gbp, which was a bonus (as postage and insurance not covered by buyer of gold).
11. I was nervous sending my little lump of yellow metal (I grew so fondly off), into the hands of someone else. But that’s what Post Office insurance is for. And why using a reputable and reliable gold store (Hatton Garden Metals) is crucial.
12. Wait for the cash to hit your account and an update to arrive in your inbox. I was offered slightly more, likely because more Brexit negotiations were taking place.
From the bank statement and email, you can see I received 3081gbp from Hatton Garden Metals (more than what was offered from them initially…and much more than other local gold exchanges).
A grand profit of 1962 GBP (3081 – 1119).
As you can see, I more than doubled my money on Gold.
I also received a decent price for my gold. Compared to the other gold exchange places I phoned and researched on the web.
I have added a positive review on FreeIndex amongst the other glowing feedback.
Why the Price of Gold Has Soared (in the Past 10 Years)
Brexit (EU Referendum)
Brexit has had a direct impact, no doubt about it. Gold shot up dramatically on EU Referendum day. Gold rises during uncertainty in the economy.
The Dollar and gold have an inverse relationship. Hence, when the demand for dollars falls, banks and investors across the world pile their money in gold, thus increasing the value of the shiny metal.
On the flip side, when the dollar appreciates in value, investors may move their money from gold into the currency. The fall in demand for gold causes its value to depreciate.
When interest rates are low, demand for gold generally climbs higher. It tends to offer investors a better place to park their money when returns from bonds and cash savings are poor – as they are when rates are low.
Even if interest rates do rise, it may not necessarily be bad news for gold. History shows gold has performed well when rate hikes took place, in the case of the Fed.
When the Eurozone is not performing efficiently or starts heading towards slower growth, gold can act as a hedge against a catastrophe i.e. the eurozone crisis. Gold is then considered more appealing to an investor. More priority is then given to the safety of their investments, rather than from the yield (gold has no yield). Thus, gold is always considered as a safe haven and protection from inflation. In this case, gold demand increases and hence, the gold price rises.
China and Russia’s Demand
Russia and China – the two largest purchasers of gold in 2015, continue to shore significant quantities of gold, like there’s no tomorrow.
Russia increased its gold reserves by 45.8 tons in the first quarter 2016, 52% higher than the same period in 2015 (30.1 tons). And China purchased 35.1 tons between January-March 2016, adding to the 103.9 tons bought in 2015, the World Gold Council has reported (Gold Demand Trends, First Quarter 2016 Report).
“Looking ahead, we anticipate that ongoing market uncertainty and unconventional monetary policies will continue to support both investment and central bank demand. This, combined with an expected recovery in India, should see gold demand remain healthy over the course of 2016,” Alistair Hewitt (Head of Market Intelligence at the World Gold Council)
Gold Price History (10 Years)
Gold has come a long way since my venture in the Gold Souk, November 2006. As you can see from the chart, the ideal selling point would have been in 2011.
Timing is crucial to buying and selling gold. I waited for a major event like Brexit to sell mine and it paid off. As it happens, I could have made even more if I waited for the US Presidential Election.
Quantity is equally as important.
As I was saying earlier, I wish I had bought more. 100g is not enough. Certainly not enough to make a difference in your portfolio. However, it’s the principle that counts here.
Think of gold as an insurance policy for your portfolio. If your portfolio takes a hammering during a crisis, gold tends to go up. Gold will hedge against uncertainty. It will minimize risk. It’s not a lovely, shiny metal to fawn over…it’s there to shield your wealth.
Now you can see, gold belongs in your portfolio and I’ve shown you where to sell gold (and how to sell it)…how much gold is left in your portfolio?