Understanding What Gold Bullion Dealers Do

If you’ve been looking for information on selling gold you’ve probably come across the word “bullion” a lot. If you are not familiar with the gold market this word, it can be confusing, but it is important to understand what it is in order to best deals for whatever gold item you are thinking of selling.

What is gold bullion?

The word gold bullion refers to an object that has been processed and formed with the purest gold. The object could be a bar, a round or a coin. Gold bullion is often the purest form of gold you can buy with a purity rating of .9999. This means that a gold bullion bar that weighs 1 ounce  could contain 99.99% pure gold. This is. Considered to be investment grade gold. Bullion is often has markings showing not only the weight but the purity to make it easy for buyers to tell how much gold is in them.

The types of bullion

There are different forms of bullion. Most forms of bullion products are made with investment grade gold which means they either have a purity of 95.5% or 99.99%. The most common investment grade forms of gold bullion include the following:

Gold 

Gold bullion bars have been the most common gold products. Gold bullion bars come in a variety of sizes from a 1-gram bar to a 100ounce bar. Smaller gold bars weighing an ounce are more popular because they are portable and more affordable. People buy them for themselves or as gifts. The advantage of these smaller gold bars is that they are portable and have a lower premium.

Rounds

Rounds look like gold coins but they do not have a face value. They are usually blank and aren’t usually minted by government as many gold coins typically are. Their value is determined by their purity and amount of gold in the

Coins

Gold coins have been around for centuries. Centuries ago, gold coins were used as currency. Prior to 1933 gold coins had a face value that represented or reflected the amount that the gold could be exchanged for. Back then, gold was still a currency and gold coins were created by government mints as legal tender. Government mints don’t do that anymore, instead of making coins for legal tender, government mints produce coins for investment processes. Investment grade bullion coins include coins like the Gold American Eagle coins, the Canadian gold maple leaf or the Australian Kangaroo coin.

If you have gold bullion in any of these forms and you would like to sell, the best way to do so is to sell to a bullion dealer Melbourne.

When choosing a bullion dealer to sell your gold to, you should consider the following factors: 

Prices

It is important to shop around and compare different prices from the different bullion dealers around. Most online bullion dealers offer higher prices than their brick and mortar counterparts because they have fewer overheads. Compare online and physical bullion dealers and see how competitive their prices are

Value

You should assess the experience you get from dealing with different bullion dealers. How good is their customer service? Are they pushy or do they try to give you more information and educate you about the process of selling gold?

Product Selection

Find out what bullion dealers prize the most. Bullion is often branded and some brands are more sought after than others. Find out what the dealer specialises in. Most bullion dealers will steer clear of proof and graded coins and rare collectible coins but they should be able to point you in the direction of someone who is interested. 

Transparency

Bullion dealers often have a buyback policy for the bullion they sell but before you sell your bullion back find out what they are currently willing to pay for the bullion. Reputable bullion dealer Melbourne will publish updated buy and sell prices for gold bullion on their sites. If you are dealing with someone who is only interested in selling and not buying then you might want to look at other bullion dealers who do buy the gold they sell back. 

 

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