Gold is an investment, whether it’s in the form of coins, bars, rounds (gold bullion), or even in the form of jewellery. What makes a good investment is that it yields a positive return. The terms that define a good investment change depending on your goals. In some cases, you might want to sell for much more than you bought it for. Other assets are used as a way to preserve wealth; for example, you hold onto it for decades, but when you sell, it’s kept up with inflation.
When it comes time to sell gold in Canada, how do you make sure you’re maximizing your investment?
#1 Place: Where to Sell Your Gold in Toronto
As the largest city in Canada, Toronto is also the country’s largest bullion market. It also happens to be the capital of the global mining economy, but that’s neither here nor there if you just need a place to sell your gold coins or bars.
If you want to sell your gold in Toronto, you have plenty of options. It pays to take your bullion to several places and get estimates for how much they’ll pay. Where you should go depends on what you have. If you have bars and 99.9% pure gold coins, head to a dealer first.
#2 Time: Gold Is in High Demand
The timing couldn’t be better if you want to sell gold. Around the world, mints are running out of gold and struggling to meet orders. Demand is high among bullion dealers as many new investors have become attracted to gold and silver based on their economic fears.
That’s led to a situation where bullion dealers have lengthy backorders with the mints. They’re more likely to pay better for coins and bars brought in by those selling, especially knowing that they can turn it around in little time.
They will still have their margins to make, but it’s the most reliable and efficient way to get a fair price for gold.
#3 Returns: Factors to Consider
You’ve found the perfect time to sell your gold, and the price seems good, but how do you make sure you’re getting a good deal?
First, take a look at what you have. If you’re selling gold jewellery, you can usually expect to receive a lower payment. In all likelihood, it will be melted down and turned into bullion.
If you have gold coins or bars, you can expect to pay slightly less than the spot price, although the more you have available, the closer to spot you can receive.
Spot prices are a good benchmark to use when you’re selling gold, but remember that there is no single gold market. Ultimately, the price of gold is what you can get for it. However, if you know what you’re selling, you’re more likely to be able to judge whether or not you’ve gotten a good deal.