Selling gold and silver – seven questions for investors to consider

Precious metal prices have been on a major bull run for the last two decades, with gold in particular rising from less than AUD $500 to more than AUD $3,000 per troy ounce (oz) in early 2023.

This price surge, and the economic factors that have driven it, have seen an explosion in demand for physical gold and silver, with tens of thousands of Australians now sitting on substantial profits due to their astute purchasing of these metals in the past.

And while demand for the precious metals continues to grow, with more and more investors adding gold and silver to their portfolio everyday, it’s understandable that some of the earlier investors in precious metals are looking to reduce their holdings.

In discussions with clients at ABC Bullion, those that have been selling have typically been doing one of four things with the money:

• Fund a house deposit

• Reducing debt with many paying down and some eliminating their mortgage

• Paying unplanned bills and expenses, or helping out a family member

• Enjoyment – with some using it to fund overseas holidays

Given the growing number of Australians that will likely need or want to sell some of their precious metals in the years ahead, this blog touches on seven key questions we think they should ask when choosing who to sell their holdings too.

How long have they been in operation?

Longevity is an important characteristic in any industry, including precious metals. The longer a company has been in operation, the more certainty you can have that they will engage honestly when it comes to buying back your precious metals and paying you promptly.

What are their accreditations?

A large well-established company should have international industry accreditations, such as membership to the LMBA, SGE and CME. Such accreditations ensure that the business is operating at the highest international standards in the bullion industry.

Where are they located?

To sell your precious metal (s), you will likely need to physically take them to the location a business operates from. It helps if they are in a CBD or easy to get to location, or ideally, have offices in multiple locations across the country.

Which products will they buyback?

This question is critical to consider, as while many websites advertise that they “buy gold”, its important to understand what that means in detail. Is it all investment grade products, or is it only select manufacturers or product types (i.e. coins).
 
Do they publish their prices?

This should be easily assessed by a review of a companies website, which either will or will not show the prices they will buy and sell precious metals for. If they do, then you know what kind of money you will receive should you choose to liquidate your precious metals through that company.

How much metal can they buyback?

This one is much harder to ascertain from an online web search. It’s very easy to say “we buy back gold at spot” as some companies do, but what does that mean in terms of quantity. One ounce of gold (worth almost $3,000 at today’s prices), one hundred ounces ($300,000) or up to a thousand ounces ($3,000,000) or more?
You want to make sure the entity you are going to sell your precious metals too can buy all of it back at the prices they quote.

How swiftly will funds be paid?

This one again is harder to find out, as sometimes companies will need to find a buyer for your precious metals before they can pay you for them. That brings delays, risks and uncertainties – all of which will be avoided if you deal with a larger business that has the reputation and liquidity to buy your metal back and pay you directly, without needing to wait for a buyer.

How ABC Bullion help investors selling gold and other precious metals

Founded in 1972, ABC Bullion have been in operation for over 50 years.

We are also a fully owned subsidiary of Pallion Group, Australasia’s largest privately owned precious metal services group, with a history that dates back to 1951, and annual turnover of more than AUD $10bn. Turnover of that size means we have the capacity to both sell, as well as buyback vast quantities of precious metals everyday.

Pallion group companies are members of the LBMA, while ABC Bullion gold is accredited by the Shanghai Gold Exchange (SGE) and the CME Group.

With offices locations in the Brisbane, Melbourne and Perth CBD, as well as our Global Flagship Store at 38 Martin Place in the heart of Sydney’s financial district, we also provide more choice to Australian’s looking to sell their gold and silver than any other bullion dealer in Australia.

ABC Bullion also publishes its buy and sell prices for products on its website, with prices updated every five minutes.

We will also buyback investment grade gold, silver and platinum products, irrespective of their year of manufacture, and will make payment to your nominated bank account within 2 days of purchasing your precious metals from you.