Is physical gold hard to sell?

Unlike gold stocks and funds, it can be difficult to resell physical gold. Pawn shops aren't known for their fair prices, and if you sell your gold to a dealer, you're likely to sell it below the spot price of gold. If you've been waiting for the right price for your gold bars, now is a good time to sell, as the price of gold has reached its highest levels for several years. Alternatively, if you're looking to buy gold with an IRA, our main recommendation is Abe Mor, which offers the best customer experience and the best value for its bars when Buying Gold with IRA. Selling with a reputable online dealer like Abe Mor is the best way to get closer to market value and convert your gold bars into cash without any undue hassle.

In the Internet age, buying gold is easy. Especially if you live in the United States, the United Kingdom, or many European countries, gold dealers not only sell and ship directly, but gold stores are also quite common. And they are also the first company I know that has a gold ingot that anyone can literally buy without spreads. However, just like every company and investment must have an exit strategy, the question to ask yourself before buying pure gold is: “How can I sell gold? With any liquid investment, you get a good price by minimizing the spread between the buying and selling prices of gold.

Although this is not as important when selling gold bars as it is if you were selling gold jewelry (since gold bars are almost always “pure gold”). With inflation rising and the stock market price well below its highs, some investors are looking for a safe asset that has a proven record of earning, and that's gold. Gold bars mean high-purity gold (usually with a purity of 99.5% or higher), often in the form of minted gold ingots or coins. Therefore, when you sell gold bars or coins, you sell close to the market price, as the buyer can expect to make a profit simply by holding the gold for a period of time.

Gold and silver in the form of ingots are usually minted in 1-ounce coins or small ingots ranging from 1 ounce to 10 ounces. That pragmatism means that there may come a time when you want to sell your gold or silver bars to invest in another asset class, such as foreign real estate to generate cash flow, an investment that qualifies you for a second citizenship, or even shares in a gold mining company. That's why you should always sell gold bars to a buyer who specializes in gold bars and coins, rather than to a retail store that probably won't offer the fair value of your bars. These coins, such as the American Buffalo, Canadian Maple Leaf and Austrian Philharmonic gold coins, are usually sold individually.

That's one of the reasons why legendary investors, such as Warren Buffett, warn against investing in gold and instead advocate buying companies with cash flow. Three of the largest ETFs include SPDR Gold Shares (GLD), iShares Gold Trust (IAU) and the Aberdeen Standard Physical Gold Shares (SGOL) ETF. Investing in gold isn't for everyone, and some investors continue to bet on companies with cash flow instead of relying on someone else to pay more for the shiny metal.