How do you sell gold

[Thailandnotes]

After watching a guy on Bloomberg say gold is going to "blow through 2,000 like tissue paper," and hit 2,600 by next summer

I would like to know the basics of selling physical gold in the U.S.

(In Thailand the price for the day is set by the government and the buying and selling price are always 100 baht apart. Shops are pretty much obligated to buy back the gold bars you have bought from them.)

In the U.S. if you were to sell 50 oz of gold tomorrow, who would you deal with? How does it work...Fed Ex?...insurance, etc.?

A side question...

If you bought gold from a friend and there is no record of what you purchased it for or you inherited it, what are you to do when reporting gains, claim you bought it yesterday?

[BadJuju]

Re: How do you sell gold

When I sold my gold and silver, it was to APMEX. They gave me the full price. It was a simple process. All I had to do was go down to the post office, choose a box, and ship it away!

[pianodoctor]

Re: How do you sell gold

One could simply walk in to most coin dealers or pawn shops to sell gold. Though it's best to have pre-determined they are in fact in the gold buying business. I believe they usually pay spot price.

I also know of very long-established coin dealer in a nearby city that has a major presence in the U.S. retail gold business. They charge a bit less premium on a bullion sale than most. One can deal with them strictly by U.S. mail and phone. They have certain clear policies stated on their website pertaining to how to transact with them this way, including insuring the parcel, etc. Also one must be registered with them first before selling to them, so a small bit of pre-planning is needed. If you are interested, check www.golddealer.com

As to the side question, there is no other answer except to be honest and since you can't prove the price you paid, hope you don't get audited and hope they don't get suspicious. I would assume that if you claimed to have bought it the day before, it could make them suspicious. Remember that the U.S. tax authorities do not offer the "innocent until proven guilty" protection. If they THINK you cheated, that may be enough for them to make your life miserable. If you are honest with them, they are much less likely to think you cheated. The best thing I think is to try to get good documentation on the purchase.

[wayiwalk]

Re: How do you sell gold

I held on to my slilver as it is my "mad max" world money....but was close to selling back when erik issued his call (darn).....but are more interested out of curiousity.

How do the coin dealiers pay you?

Cash? Certified check? At some dollar amount I'm not crazy about trading.

[Ghent12]

Re: How do you sell gold

I held on to my slilver as it is my "mad max" world money....but was close to selling back when erik issued his call (darn).....but are more interested out of curiousity.

How do the coin dealiers pay you?

Cash? Certified check? At some dollar amount I'm not crazy about trading.

I've been paid cash and check before at the spot price from Kitco, but I've only done small transactions at a time, less than $1700 each.

[thriftyandboringinohio]

Re: How do you sell gold

I held on to my slilver as it is my "mad max" world money....but was close to selling back when erik issued his call (darn).....but are more interested out of curiousity.

How do the coin dealiers pay you?

Cash? Certified check? At some dollar amount I'm not crazy about trading.

I sold a single 1-oz gold coin from my stash at a coin shop a few years ago just to prove to the wife it was easy.
The shopkeeper paid me with a company check (essentially a personal check).
I received spot less five percent.

When I purchased my physical, I always paid with cash, the only transaction records for my purchases are the shopkeeper's handwritten receipt without a person's name, only a date, a qty and a price. I can use those for tax purposes if I still have them, though it's always possible the little slips of paper could get lost.

Selling physical during an exponential mania price blow-off still worries me. At the peak I suspect the smart dealers will jump out of the game, and most coin shops and pawn shops could have signs in the windows saying "not buying gold today". They are, after all, little guys like us investing in physical gold, and we will both see the same things when that day arrives and both of us will try to be sellers.

[wayiwalk]

Re: How do you sell gold

TABIO -

You post reminds me of something I've thought about.

I do have gold through buillion vault.

I even imagine during "the end" that even an company like that may have challenges moving cash fast enough. I figure I'd like to get out before things are in a manic stage.

With iTulips silver call, it was tough to get the word and act on it in a timely fashion (especially if one was dealing with physical ).

I would prefer to be a somewhat wiser frog than the one who is in the kettle that is slowly approaching boiling temps, so that, say, I got word that, "this looks like it is 50% chance that we'll see a peak in next 3 months", I could use that info to temper my decision, and weigh the risks/tradeoff with not selling at peak vs potentially having trouble recovering (all) of my cash in a timely fashion.

[thriftyandboringinohio]

Re: How do you sell gold

TABIO -

You post reminds me of something I've thought about.

I do have gold through buillion vault.

I even imagine during "the end" that even an company like that may have challenges moving cash fast enough. I figure I'd like to get out before things are in a manic stage.

With iTulips silver call, it was tough to get the word and act on it in a timely fashion (especially if one was dealing with physical ).

I would prefer to be a somewhat wiser frog than the one who is in the kettle that is slowly approaching boiling temps, so that, say, I got word that, "this looks like it is 50% chance that we'll see a peak in next 3 months", I could use that info to temper my decision, and weigh the risks/tradeoff with not selling at peak vs potentially having trouble recovering (all) of my cash in a timely fashion.

I'm with you.

I don't need to buy anything at an exact market bottom nor do I need to sell anything at an exact top.
I'll leave that bit for people smarter than me.

My basic plan since 2001 has been to sell the gold and buy the Dow when the ratio is 2:1 (e.g., gold $3500 and Dow $7000)
I may not really have enough nerve to stay in gold that long once it starts up a true exponential slope.
I'd rather exit too early than too late.

[jiimbergin]

Re: How do you sell gold

I'm with you.

I don't need to buy anything at an exact market bottom nor do I need to sell anything at an exact top.
I'll leave that bit for people smarter than me.

My basic plan since 2001 has been to sell the gold and buy the Dow when the ratio is 2:1 (e.g., gold $3500 and Dow $7000)
I may not really have enough nerve to stay in gold that long once it starts up a true exponential slope.
I'd rather exit too early than too late.

me too, but knowing me I will always hold some. I first bought in 1979 both gold and silver and still have all that I bought then (not that much about 1.5 ounces of gold and 48 ounces of silver).

[shiny!]

Re: How do you sell gold

Selling physical during an exponential mania price blow-off still worries me. At the peak I suspect the smart dealers will jump out of the game, and most coin shops and pawn shops could have signs in the windows saying "not buying gold today". They are, after all, little guys like us investing in physical gold, and we will both see the same things when that day arrives and both of us will try to be sellers.

At some point recently (within the past year?) EJ said he'll be recommending to sell months before the end-stage mania phase. IIRC, it will seem like a terrible time to sell, but the smart move will be to start selling in tranches at that point while buyers are still buying, rather than trying to wring every last penny out of the run and risk selling a day late.

[SlopeOak]

Re: How do you sell gold

Selling physical during an exponential mania price blow-off still worries me. At the peak I suspect the smart dealers will jump out of the game, and most coin shops and pawn shops could have signs in the windows saying "not buying gold today". They are, after all, little guys like us investing in physical gold, and we will both see the same things when that day arrives and both of us will try to be sellers.

During the "everybody wants some" mania phase, wouldn't the average person's desire for gold dictate that dealers would be very happy to buy from you? They'd have throngs of people looking to buy.

[sishya]

Re: How do you sell gold

I sold a single 1-oz gold coin from my stash at a coin shop a few years ago just to prove to the wife it was easy.
The shopkeeper paid me with a company check (essentially a personal check).
I received spot less five percent.

When I purchased my physical, I always paid with cash, the only transaction records for my purchases are the shopkeeper's handwritten receipt without a person's name, only a date, a qty and a price. I can use those for tax purposes if I still have them, though it's always possible the little slips of paper could get lost.

Selling physical during an exponential mania price blow-off still worries me. At the peak I suspect the smart dealers will jump out of the game, and most coin shops and pawn shops could have signs in the windows saying "not buying gold today". They are, after all, little guys like us investing in physical gold, and we will both see the same things when that day arrives and both of us will try to be sellers.

what was the item you sold - maple coin, pamp bullion ? I think you got shafted.

I sold many last year 2011 here with local coin dealer in Norcal, when I bought my house
- Maple Gold 1 oz selling price is $Spot + $10, buying price is $Spot + $30.
- Pamps 1 oz : Gold selling price is $Spot , buying price is $Spot + $26
- pamps 100 gm : Gold selling price is 0.98 * $Spot , buying price : don't know(since I bought online)

From my research - Gold maples have the best(lowest) spread between bid/ask at the local dealer

[thriftyandboringinohio]

Re: How do you sell gold

what was the item you sold - maple coin, pamp bullion ? I think you got shafted.

I sold many last year 2011 here with local coin dealer in Norcal, when I bought my house
- Maple Gold 1 oz selling price is $Spot + $10, buying price is $Spot + $30.
- Pamps 1 oz : Gold selling price is $Spot , buying price is $Spot + $26
- pamps 100 gm : Gold selling price is 0.98 * $Spot , buying price : don't know(since I bought online)

From my research - Gold maples have the best(lowest) spread between bid/ask at the local dealer

It was a 1-oz coin I sold back in 2006 or so, when gold was about $600 or $700 an oz at spot.
I don't recall which sort it was, I have many - pandas, maple leaf, philharmonics, krugrands, eagles.
All my physical is 1 oz coins, I just bought as much as I could afford of whatever the local shops had every month or so for a few years.

I listened to EJ early, bought most of mine in '02 and '03 and paid an average of $478 an oz, I got my first at $340/oz. The most I ever paid was $620 in '06.

Back then when prices were that low coin shops typically charged spot-plus 5%, and paid spot-minus-5%.
I'm happy with what I have and what I paid for it.
Except for that one coin, I still have it all.

[shiny!]

Re: How do you sell gold

what was the item you sold - maple coin, pamp bullion ? I think you got shafted.

I sold many last year 2011 here with local coin dealer in Norcal, when I bought my house
- Maple Gold 1 oz selling price is $Spot + $10, buying price is $Spot + $30.
- Pamps 1 oz : Gold selling price is $Spot , buying price is $Spot + $26
- pamps 100 gm : Gold selling price is 0.98 * $Spot , buying price : don't know(since I bought online)

From my research - Gold maples have the best(lowest) spread between bid/ask at the local dealer

From what little experience I have, sometimes the dealer pays spot, sometimes less than spot and sometimes more than spot. I once asked him why, and he replied that it has to do with scarcity and volume. When nobody's selling he pays more. When there's a glut he pays less.

[doom&gloom]

Re: How do you sell gold

You can always sell for cash On CraigsList, just meet them in the lobby of a major bank for payment. If they won't meet there, no sale.