How to Effectively Buy or Sell Gold Bars and Coins

For centuries, gold has been the measurement of wealth, especially during turbulent times. But in recent years, average individuals can easily buy or sell one of the most expensive metals in the world, gold. There are online, bar or bullion sellers and dealers, street shops that sell bars and coins, and in some places, you can buy ingots from a vending machine.

What makes it very attractive to investors is, its tangible asset that’s expected to hold its value even if the stock market experienced high inflation rate or the market crashes. However, investments that are intended to be used as a shield against market crash and the high inflation rate have little to no use if the item can’t be sold quickly.

So, if you buy gold, whether it is a nugget, coin, bar, leaf or ingots, you need to make sure that you can sell them quickly, at the highest price possible. So, the big question is, “How easy can you offload?”

Not all dealers will be interested in buying your item

If you have gold bars for sale, you may find out that not all people will be interested in buying the item from you. A lot of dealers will only buy back bars or coins that they sold themselves. And while there are significant dealers that will buy bars and coins that they did not sell themselves, it may be at a much lower price; you would instead hold on to that for a little while and look for another dealer that will buy it from you at a reasonable price.

If you bought it from a specific dealer and paid them to keep it safe for you, rather than taking it back, you need to sell it back to the same dealer.

Beware of the “spread”

Dealers and buyers made their money through the difference between their selling price and the price when they bought it, which is also known as the “spread”. So, when you are buying the item from dealers, you will probably get the gold at a higher price than the spot or market price.

And when you sell it back, they will buy it from you at a much lower price. With certain kinds of gold, particularly coins that are very rare or small ingots, there can be a higher spread. The price will also rise when the stock market suddenly drops.

One of the most popular forms, like one-ounce bars, are most likely to have lower spreads. Not only that, dealers are more likely to offer prices closer to the market price if you plan to sell or buy gold in large quantities. Among British investing companies, Sovereign and Britain coins are two of the most popular investors. That is why there is no capital tax gain is due to any profit.

Whatever form or kind of gold you buy, there is no Value Added Tax or pay stamp duty. But there may be other fees if you store it by yourself. There’s also the insurance cost for the bullion and coins because you need to pay if you want your gold to be secured and delivery services to be traceable when you sell your bars and coins.

(To know more about taxation of precious metals, visit

Buying a lot of coins makes life easier

Buying a lot of coins instead of buying big gold bullion means that you incur greater spread in the price of your gold, and also offers a lot of flexibility. If you want to put your money into a one-kilogram bar, when you want to sell it, you need to sell the entire bullion, not just a chunk of it. But with coins, or with small-sized bullion, it is possible to sell parts of your holdings.

Other funds

Some people invest indirectly in gold by buying shares inexpensive or precious metal producers and miners. The market price determines the share price from these companies. The advantage of online traders or funds is that they can avoid the hassle of storing physical gold by yourself. So, whether you are dealing with sellers, buyers, or online traders, you have to make sure that you understand everything about the industry.