Gold has been a coveted and timeless store of value for centuries. Many investors have chosen to invest in gold bullion as a means of preserving their wealth and protecting against economic uncertainties.
However, there may come a time when you decide to part ways with your precious gold bullion, and selling it can be a wise financial move.
Why Sell Gold Bullion?
Before delving into the how, let’s discuss the why. There are several reasons why someone might choose to sell their gold bullion:
- Profit Realisation: Over time, the value of gold can appreciate significantly. Selling gold bullion at the right moment can yield substantial profits. In the survey conducted by Gallup, 26% of US citizens said they believe gold investment is the best choice for the long term, while 34% think real estate is where the future money is. Compared to the previous year (2022), it was a significant 8% increase in favour of gold investment.
- Diversification: You may want to diversify your investment portfolio or allocate funds to other assets or opportunities. Despite a drop in reliability, real estate investment opportunities are still one of the leading forces in the US public opinion when it comes to investment strategy. Of course, there are other opportunities as well, such as stocks.
- Financial Need: Life circumstances may necessitate the liquidation of assets, including gold bullion, to meet financial needs or goals. For example, Russians had been buying gold extensively for the entire 2022, and then in February 2023, they took the opportunity of increased gold value to sell a portion of gold to cover the budget deficit of $25 billion.
- Loss Mitigation: If you believe that the price of gold is about to decline, selling your bullion can help minimise potential losses. This could be the case now if you believe FED’s measures to reduce the gold value will work, even though some experts, such as Robert Minter, don’t agree.
Steps to Sell Gold Bullion
Now that you’ve decided to sell your gold bullion, here are the steps you should follow to ensure a successful and lucrative transaction:
- Determine the Value of Your Gold Bullion so you know what price to expect.
- Find a Reputable Buyer (local coin dealers, online dealers, auction houses): always trade with a well-known buyer with a good reputation to avoid scammers.
- Verify the Purity and Weight: this will have a significant effect on how much you can earn from the bullion sale.
- Visit Multiple Dealers to Get More Quotes: different dealers will offer different prices, so make sure to get enough pricing data before you decide where to sell.
- Negotiate and Finalise the Sale
Bought gold bullion is usually stored in bank treasuries and vaults, since they aren’t easy to transport, so make sure to choose a bank that is well-equipped for your needs.
