If you’re reading this article, you have more than likely completed our online Safety Step course in which we teach you a number of new concepts. One of these concepts is the idea of Hyper Long-Term investing, a main strategy that can be implemented by anyone. In this strategy, we teach that holding your precious metals for the “hyper long-term” is a great (if not, the best) way to preserve your family’s generational wealth. And of course, in the case of a financial collapse, you have it there as a tool for trade.
However, everyone is different, and you may find yourself needing to sell some of your precious metals earlier than planned for any given reason. If this happens, then we want you to be well equipped to properly do so! Just like with buying the metals to begin with, there are many unscrupulous dealers out there that will take advantage of people trying to sell, and not pay the real worth of the metal. So, here’s some information on how to safely sell your gold or silver:
Know the Value
In our Safety Step course, we teach you how calculate the melt-value of any coin or bar, for the very reason of knowing if someone is giving you a fair price for your precious metals. If you’re a TRADEway student, then you’re probably going to be selling some bullion coins or bars that you had previously purchased as a “hyper long-term” investment. If so, then you already know that your coins/bars are in great quality. The next step for determining the value is weight and purity; do your melt-value calculation to know what the raw metal is currently worth, and you’ll have a solid place to start when knowing if someone else is giving you fair pricing.
If you’re dealing with a more collectible coin, then you’ll need to do a little bit more research (which TRADEway can help you with if needed). Look online and try to find the coin that you’re trying to sell that’s roughly the same condition as your own, and it’ll give you an idea of what that specific coin is selling for in the current market. This will give you a rough estimate that you can build upon after a little more research, which might include referencing a guide book.
Does doing your own research seem a little scary? If so, take your gold or silver to a dealer that specializes in precious metals—not a general pawn shop or cash-for-gold store—and ask them to estimate its value. Even if you don’t end up selling locally, at least you will have a base price on hand before seeking online bids.
Avoid a Quick Sell
It could be tempting to go to your local “cash-for-gold” pawn shop, or TV ads and transient vendors promising a quick and easy purchase of your precious metals. In many, many cases these businesses are not going to give you an honest price for your bullion, usually paying out a price far less than the true melt-value of your coins or bars.
Even though a quick sell may seem like a good option, especially if you need some extra money quickly, you will almost always find yourself selling for a price well below the real value of your precious metals.
In conclusion, a proper education will always be of great benefit for situations like this. Knowing how to calculate the melt-value alone can give you a solid place to start. But also doing a little research, and finding reputable dealers to sell to will give you the ability to sell your metals for a small premium, in some cases. Anytime you’re thinking about selling, give TRADEway a call! Even though we don’t currently purchase metals from students, we will certainly help point you in the right directions so that you can get the most out of your investments!