By now you’ve probably seen advertisements offering to buy gold for cash. These ads have appeared everywhere, on television, in newspapers and on the internet. Why do these ads appear so frequently? How do they work? And how do you get the best deal possible?

These dealers are looking to profit from recent spikes in gold prices. They buy your gold with cash in the expectation that prices will rise higher. Many are legitimate, while others are not. Owners of gold will sometimes find themselves in situations where they need a little bit of cash, to pay bills or purchase other merchandise they desire.

How To Select A Cash For Gold Dealer

As a seller, you clearly want the highest price possible for your gold. To get it, you must know the gold you have in your possession. Is it bullion or numismatic? Gold bullion is valued purely based on its weight, while numismatics consists of rare coins which carry a collection value. The price offered to you by the dealer will largely be based on the weight and purity of the gold, but if it’s a numismatic you must consider the collection value as well.

Do not do business with any dealer that isn’t licensed. The majority of states in the U.S. require a license for gold dealers to operate. However, many local and online gold shops do not have such as license. Do your research to make sure they have it; never take their word for it. It is also wise to select a dealer that sells and buys gold daily.

This is important as this shows they know the process as well as the premiums and markets, increasing the chances that you will get the highest price for your gold. Look for dealers that have a positive reputation and who have been in business for at least 5 years. These businesses will often be listed in the BBB (Better Business Bureau) and should be highly rated.

Know Your Gold

Bullion gold is easy to value: it will be priced by weight and gold’s current spot price. Numismatics are more complicated. For instance, a 1 oz gold coin which is rare and in excellent condition could sell for more than $30,000, much more than its gold value by weight. When selling numismatics you must visit a coin specialist who is reputable and can accurately value your coin and give you the correct price for it. Regardless, don’t expect to get 100 percent of the value of your gold, whether it be bullion or numismatic.

The best dealers will give you between 80 and 90 percent of a coin’s value, while the average is between 60 and 70 percent. If the dealer offers you anything less than 60 percent decline the transaction and take your business elsewhere. Finally, only sell your gold if it’s urgent. Paper money is paper and has no inherent, intrinsic value, only the value that the government gives it. Paper money is ultimately subject to inflation while gold and other precious metals maintain their value over time.