When it comes to selling precious metals, such as gold or silver, the amount of money a dealer makes depends on a variety of factors. The buy and sell spread, the type of metal, the volume of metal being bought or sold, and the current spot price of the metal are all important considerations. Professional gold and bullion traders, such as those at First National Bullion and Coin in Scottsdale, have years of experience in this market and understand how to maximize profits. The buy and sell spread is the difference between the price a dealer pays for a metal and the price they sell it for.
This spread can range from 0.5% to 35% per transaction. The spot price of a metal is the current exchange rate for that metal, which can be found by searching online. This is the price that dealers usually offer when buying or selling a metal. When it comes to gold coins, dealers will pay more for coins minted by a sovereign government than for collectible coins that may not be pure.
Commemorative editions are also available directly to the public, but they are more expensive. Gold brokers are not affected by the spot price since they charge customers roughly the same amount they pay wholesalers. The United States Mint charges a 3% premium for Gold Eagles to their authorized wholesalers. Other institutions, such as cash converters in Europe, will buy gold jewelry for 50% less than the spot price of gold. It is important to be aware of scams when buying or selling gold.
The American Numismatic Association (ANA) warns against cold call requests or mobile offices set up in temporary locations that offer instant money for gold and silver coins. When it comes to investing in gold, there is no danger of confiscation. However, it is important to note that obtaining gold can take up to a year and the amount delivered by a mine may be small (equivalent to 1 to 5 million USD).
