Most guides focus on buying. Selling gets far less attention, yet it is where many people lose money they did not need to lose. Knowing how to sell gold and silver well comes down to preparation: knowing what you have, knowing what it is worth as metal, and comparing more than one offer. This guide walks through the process step by step.
This article is general education. It is not financial advice, tax advice, or legal advice. Silver Gold Today may earn a commission from some links on the site; see our affiliate disclaimer.
Step 1: Identify exactly what you have
Before you contact anyone, sort your items into groups. Each group is priced differently, so mixing them makes it harder to compare offers.
- Bullion coins and bars. Items made to hold a stated weight and purity, usually marked on the item or its packaging.
- Collectible coins. Coins that may be worth more than their metal because of rarity or condition. Our guide to bullion vs numismatic coins explains the difference.
- Older circulated silver coins. Often sold by face value. See our guide to junk silver coins.
- Jewelry and scrap. Items marked with a karat or fineness stamp, or unmarked items that will need testing.
Write down the weight, purity, and description of each item. Original packaging, certificates, and receipts all help, so gather them now. If you are unsure what something is, say so when you ask for quotes rather than guessing.
Step 2: Work out the melt value yourself
Melt value is the value of the pure metal in an item at today’s spot price. It gives you a baseline for judging every offer.
- Find the fine (pure) metal weight. For bullion, it is usually stated. For jewelry, multiply the item’s weight by its purity. For example, 14 karat gold is 14 parts gold out of 24.
- Check the current spot price on a live source such as Kitco, or the benchmark prices described on the LBMA prices page. Note the time, because prices move during the day.
- Multiply the fine weight in troy ounces by the spot price.
Watch the units. Precious metals are priced per troy ounce, which is heavier than the ordinary ounce used for food. Kitchen scales usually show ordinary ounces or grams, so convert carefully.
Step 3: Understand what dealers pay
Dealers need to make a margin, so offers will usually sit below melt value for most items. How far below depends on the type of item:
- Widely recognized bullion is easy for a dealer to resell, so offers tend to sit closer to spot.
- Less familiar bars and rounds may get lower offers, because they are harder to resell or need testing.
- Jewelry and scrap must be refined before the metal can be reused, so offers are usually a lower share of melt value.
- Collectible coins can be worth more than melt value, but only a dealer who knows that market is likely to pay for it.
The difference between what a dealer charges to sell an item and what they will pay to buy it is called the spread. Our guide to spot price vs premium explains it in more detail.
Step 4: Get several quotes before you sell gold and silver
This is the most important step for anyone learning how to sell gold and silver. Offers for the same item can differ widely between buyers. Ask at least two or three, and compare them on the same day so the spot price is consistent.
Where to get quotes
- Local coin and bullion dealers. You can see your items tested and get paid quickly. Ask whether the quote is per item or per ounce.
- Online bullion dealers. Many publish buyback prices. You will need to ship your items, so ask about insured shipping and how long payment takes.
- Specialist auction houses. Worth considering for valuable collectible coins, but expect fees and a longer wait.
- Jewelers. Some buy scrap gold. Compare their offers against a bullion dealer’s, as practices vary.
Questions to ask every buyer
- What is your offer, and how did you calculate it?
- Is the offer based on today’s spot price? How long is it valid?
- Are there any fees for testing, shipping, or payment?
- How and when will I be paid?
- Can I see the item being weighed and tested?
Ask for each quote in writing, by email or on a printed slip. A written quote is easier to compare and gives you something to point to if the final payment differs from what you were told.
Red flags when selling
- A buyer who will not explain how the offer was calculated.
- Weighing out of your sight, or using a scale you cannot read.
- Pressure to accept on the spot, or an offer that “expires” in minutes.
- A single lump-sum offer for a mixed lot with no breakdown.
- Mail-in services that do not give a clear quote before you ship, or that make it hard to get your items back if you decline.
Pop-up buying events and temporary “cash for gold” stands deserve extra caution. Compare any offer with a quote from an established dealer before you accept.
Selling an inherited collection
Inherited metal often arrives as a mix of coins, bars, and jewelry, sometimes with no records. Take it slowly. Sort the items, photograph them, and list what you can identify before anyone makes an offer. Have any coins that might be collectible looked at by a specialist before selling them as metal, since a single better coin can be worth more than the rest of the lot. If the estate is still being settled, check with the executor or a legal professional before selling anything.
Records, paperwork, and taxes
Keep a record of every sale: the date, what you sold, the price, and who bought it. Keep your original purchase receipts too. Tax treatment of precious metals depends on where you live and your circumstances. Ask the dealer what paperwork they provide, and speak with a qualified tax professional before selling a significant amount.
Frequently asked questions
Should I clean coins before selling?
No. Cleaning can scratch coins and reduce their value, especially for collectible coins. Sell them as they are.
Is it better to sell all at once or in parts?
That depends on your needs and circumstances. Selling in parts spreads your exposure to price changes on any one day, but it also means more transactions. A financial or tax professional can help you weigh this.
Why is the offer lower than the spot price?
Dealers need a margin to cover testing, handling, and resale costs. For jewelry and scrap, refining costs also reduce the offer.
Can I negotiate?
Often, yes, especially if you have competing written quotes. A clear record of your items and their melt value puts you in a stronger position.
The bottom line
The key to how to sell gold and silver is to do your homework first. Identify and sort your items, calculate melt value from a live spot price, get several quotes on the same day, and ask each buyer to explain their offer. Keep good records, and talk to a qualified tax professional before selling a large amount. This is not financial advice.