Finance

Buying and Selling Gold Bullion

Owning gold bars has advantages that many currencies do not have – intrinsic value. Gold and has a set value that other currencies do not have because they are affected by inflation. The price of gold may rise and fall but it always acts favourably when inflation rises and the strength of currencies like the dollar weakens.

This means gold is a good investment to make it you want to hedge against inflation. Experts agree that it is better to have gold stashed away than to have stacks of dollars hidden away or even saved in the bank. We have seen in recent times how banks can collapsed and millions of people lose their life savings. We have also seen how currencies can lose their value and be rendered useless. Venezuela is the latest country to see its currency lose its value. Physical gold on the other hand has proven to be a safer investment.

What exactly is gold bullion?

Not all gold is created equally. If you are looking at gold as an investment, you will come across the term “Bullion”. Gold bullion is pure gold made up of at least 99.5 percent pure gold. It can be made into bars, ingots or gold bullion coins. Bullion is mostly bought as a safe-haven investment but what do you do when you need to liquidate your gold bullion?

There are various ways that you can sell your gold bars.

Find a local gold buyer

The first thing to do is to find a gold dealer in your area. You can do this by checking the classifieds in your local paper as many gold buyers advertise their services in the local paper. If you still use the yellow pages, you should find a couple of dealers listed in there. Or you could look online for gold dealers near you.

Work out how much your gold is worth

Before finding a gold dealer you need to find out what the spot price of gold is and work out how much you can expect to get for your gold. The spot price of gold changes often. You can check what it is from trusted financial resources. Remember that the spot price of gold is given for a Troy ounce or 1kg of 99.9% pure gold which is what gold bullion bars are made of.

To work out the price premiums when you buy or sell gold bullion bars you simply need to multiply the weight of your bars by the current spot price and calculate the difference.

Pawnshops and gold bullion

Besides, gold dealers, other businesses that buy gold bars include pawnshops. You can pawn your gold bar for a cash loan or you can sell physical gold for cash. Pawnbrokers do not always give high prices for gold bars. It is not the kind of thing you will see being sold at a pawn shop. Rather sell gold bars to a business that deals with gold.

Use online resources

You can go online a do some research online for different bullion dealers. You can find out what their reputation is like by reading online reviews. Its best that you bring cash if you are looking to buy gold bullion.

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