Gold is considered to be a commodity like other precious metals. Historically, gold has always functioned as a commodity and currency. It has characteristics of a fiat commodity or the quality of monetary assets or currency but it is mostly a commodity like oil, coffee, and other products like that. Still, it is different from other commodities because it has sentimental value and collective value which means its price can be more subjective. However unlike other metals that are considered to be commodities like lead, copper, or tin, gold is more valuable than this because it is rare, malleable, and has excellent corrosion resistance.
How do you know you are dealing with a reputable gold bullion dealer?
- One of the best ways to find out if you can trust a bullion dealer is to look at their customer reviews. Companies that have bought and sold millions’ worth of precious metals have built up a solid reputation. They can pay you a price that is a bit closer to the spot price for your bullion.
- The internet has made it possible for people to transact online with companies they have never physically interacted with, but some people are more comfortable with face-face someone face-to-face. It’s easier to get direct information and even negotiate better with someone you can physically see. If you have no choice but to go online, you should make sure that the dealer has a physical address listed. Avoid gold dealers who only list a postal address as a physical address.
- Look for a bullion dealer who puts their pricing clearly on their website. This might be difficult for gold sellers as the price of gold fluctuates daily. If they can’t give you a price for your particular bullion, they should at least be clear about how they come up with the prices.
- Reputation is important. Fraud might be rare but gold dealers might be known for offering low prices or treating gold bullion as if it scrapped gold. These are two different forms of gold and are therefore subject to different pricing methods. A dealer cannot treat a gold bullion coin the same way he treats scrap gold.
– Risk disclosures:
There are always risks when selling investment-grade gold. A good dealer will be open about the risks and realities. Some information might be buried in the fine print of the sale agreement. Read the terms and conditions of selling your bullion to a particular dealer.
There are a lot of bullion dealers in Australia. Some are easy to find because they also conduct their business online but there are still a lot of dealers that run brick-and-mortar businesses. If you are selling gold for the first time, it might be helpful to find a physical gold dealer near you. Why is a physical bullion dealer ideal for a first-time gold seller? Because there are a lot of illegitimate dealers who might offer you incorrect information about what you have and offer you less than what you deserve for your gold. You can only expect to get what your bullion is worth by dealing with a reputable dealer.