How do I get a good deal from gold buyers?

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LaurentG
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How do I get a good deal from gold buyers?

Post by LaurentG »

First of all, GOLD is more like stocks or commodities than like one-of-a
kind things like custom built houses.

The “melt price” is quoted ever day on many websites . There is a very
little “spread” between bid and asked.

I am talking here about gold bars and bullion gold coins —not collector
coins with rare dates.

With that introduction, you should be able to get the quoted melt price
from any private gold buyer including me. Obviously, fakes and
counterfeits will be detected by well informed buyers who may have you
arrested for fraud. Also, online private buyers may just be stick-up
artists who will rob you at gunpoint. BEWARE!

Neighborhood stores of the “we buy gold” type sell at a 3 to 20% markup,
and buy for the same. They make low offers on repurchases, and quote
high markups on sales. They hope you will accept. Most of their
customers are ignorant of the market and get taken for a ride. Thus
generally, small neighborhood stores are not great places to buy or sell
unless you get the online quote, and then armed with this foreknowledge.
Sell only if their offer is pretty close.

On collector coins dealers make their big profits—often buying a one
ounce coin for $700 and pricing it for sale at $3000. The secret is to
go online and shop around. Kitco.com <http://kitco.com/> is a good place
to start. I know of other outfits for serious (1,000 troy ounce) buyers
or sellers, but I can’t publish their contact numbers here as they would
get mad at me for sending them a lot of non-serious tire-kickers. As in
every business there are more people who are “All hat and no cattle,”
than real serious buyers or sellers.

Now we talk about gold dealers in Thailand or Hong Kong. For regular
customers they often sell nice gold jewelry or bullion at a 3% markup
and buy it back at a 3% discount. To get this deal (or maybe even a
better one) you have to know someone or at least be able to turn on the
charm. Small items like Baht Chains are what they deal in.

Big wholesale dealers make the best deals, coins, bars, scrap gold,
etc.They have razor-thin margins — maybe 2% on either buy or the sell
side. But don’t expect a wholesale deal when you have one itsy-bitty
wafer or small coin.

Some countries like France have a substantial sales tax on gold (5% last
time I looked) while others like Switzerland/Singapore have no tax. I
shouldn’t have to tell you where it’s best to buy or sell legally.

PeterTaradash.com <http://petertaradash.com/>

PS : I suggest BullionVault
You'll be legally allocated physical gold in their offshore vaults. Take the time to read their FAQs if you're interested.
You can open a BullionVault account from virtually any country.
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