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Gold prices have been buoyant throughout the pandemic based on economic fears and high unemployment. However, there is no telling where gold prices will go from here. Some investors are concerned that stimulus spending will kick off inflation, and they’re piling into the gold market as a hedge. Others think that as global economies recover from lockdowns, gold will lose some of its shine, and prices will stabilize or drop off.
So, does it make sense to sell your gold in Canada right now? If so, how should you do it?
The Number One Rule: Sell High
It’s the basic rule of investing: buy low, sell high. Whether you own investment-grade gold bullion or you have a jewellery collection you want to turn into cash, how much you can earn is all based on the spot price of gold.
You should be able to expect to sell for a little bit under the current spot price. How much less depends on whether you’re selling bullion gold coins or bars that can be resold as is or if you’re selling jewellery that will be melted down.
Right now, gold prices are strong compared to the Canadian dollar thanks to ongoing pandemic concerns, and if your plan is to sell your gold anyway, it would be a sensible time to sell.
Where to Sell Your Gold
Where to cash in depends on what you own. There are two main types of gold you might have: bullion and jewellery.
Take Coins and Bars to a Bullion Dealer
Investment-grade bullion is 99.9% pure gold, although there are exceptions, such as the widely accepted American Gold Eagle and South African Krugerrand. The price you should be able to get for these pieces is close to spot price, minus a discount that the reseller will use to cover their margins. The more you can sell, the closer to spot you should be able to reach.
Find the Right Home for Jewellery
The gold content of jewellery means that no matter what, you’ll be able to make some cash when you sell it. But to get the best price, you have to find the right place to take it. Get several quotes from bullion dealers or cash for gold businesses before you settle.
In some cases, gold jewellery from the right brand can actually sell for more than its gold contents. That’s when you want to take it to a place that understands the collectible value of jewellery rather than just any cash for gold business. Take designer brand jewellery to a business that works with collectors and knows what the market for unique, antique, and high-resale-value jewellery really looks like.
In addition to others, some of the high-end brands to look for include:
- Van Cleef & Arpels
- Tiffany & Co.
- John Hardy
Find a business that specializes in jewellery and collectibles if you think your gold pieces are worth more than just the gold content.