The Challenges You Might Face While Selling Gold

You have the gold bars in plenty. You know any dealer will jump at the sight of the gold and be willing to pay ridiculously high amounts for the gleaming metal in your bag. You have weighed it at home and come up with a proximate value. You probably know about scammers and pride yourself that no one can fool you. Besides, haven't you been studying the country and international gold market, marking trends and charting grafts for the last few days? You began this habit weeks ago. Or maybe it's some gold jewelry you're hoping to sell and acquire a tidy sum of money. You have never heard of anyone who broke a sweat while selling gold. You were wrong. Trading in gold can carry with it some nightmares.

1. Fraudsters

This is the most obvious challenge, when posers acting as registered gold dealers fraud you out of your valuable asset.

Most times, to evade this, simply look up the dealer in question! Pick up an updated and government or statutory certified index and skim through. Frauds can also use fake scales and testing kits in measuring the mass and purity of your gold. Know beforehand the processes that are to be used for the above. For pricing, as at 21st of November 2014 for example, a gram of gold sells for 44.31 Australian dollars, and a kilogram sells at 44311 Australian dollars, according to Gold Price Australia. Such daily rates should help you when selling your gold.

Online traders are sometimes a risky bet, especially whenever you can't establish a history or can't find referrals and verifiable positive reviews about them. It is advisable to stick with actual, physical dealers whenever possible.

2. Selling Below Or At The Spot Price

The reason for this, as explained by JM Bullion America, is that the dealers need to make a profit while covering expenses at the same time like rent and salaries for employees. It could actually be better to go straight to the dealers than through a middle man who may charge exorbitant commissions.

3. Quantity

Many dealers have a fixed price for transacting gold of a certain mass range, meaning you may incur losses when you have gold of a mass that lies on the upper quarter of a certain weight range, when you could have gotten more for the next mass range had you been having a little more gold.

4. Quality

Tarnished metal sells for less than unsullied gold.

5. Global Trends

Market Watch reports for example that in the United States, between January and March of 2014, the prices of gold spiked by 13%. After July, the prices have been dipping at an alarmingly high rate. By September, the prices were almost as low as those seen at the end of the previous year. The Gold Eagle reports that gold prices have dipped at a rare total of 41% over the last three years. Such global trends will definitely impact negatively on the stock price and consequently, the returns you get for your gold.

Most importantly, be alert. Observe world trends, have your ears on the ground and for what it's worth, consider holding on to your gold for just one more day before you dispose of it. It is one of the only currencies accepted all over the world.


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Abraham knows his craft and ways of maneuvering the maze that the sale of gold can be. He is an agent at Gold Dealers Company who assures you of a clear and accountable process in buying your gold. He particularly enjoys making the process easier for first time sellers so they keep coming back. For more information and advice, visit http://sellgoldsydney.com/ .