Selling physical gold: what you actually receive, and how to sell well

How much do you actually get when you sell gold?

In short: usually a little less than the spot value of the metal at that moment. The buyer deducts a spread, and there may be costs for vault withdrawal, shipping or testing. Exactly how much depends on the product, its condition, its documents and who is buying.

The table shows proceeds on gold with a spot value of $100,000 in four scenarios. These are illustrative assumptions only — ask for a written buyback offer before you decide.

The differences come mostly from trust: a buyer who knows the product, knows where it came from and can verify it easily needs less of a safety margin.

How the buyback price is set

• Reference price: usually the international spot price in US dollars per troy ounce, converted at an exchange rate the buyer chooses if you sell in another currency. Ask which reference and which time.
• The product: bars from recognised refiners and widely traded bullion coins are easier to buy back. Unfamiliar products or collector coins are priced differently.
• Condition and documents: sealed original packaging, a serial number matching the certificate and a purchase invoice shorten the checks.
• Location: gold already in the buyer’s vault needs no shipping or testing, so the spread is often narrower.

Selling, step by step

1. Gather documents: purchase invoice, product certificates, serial numbers, storage statements.
2. Ask for at least two written offers for the same product at the same time, showing reference price, exchange rate, spread and fees.
3. Confirm the terms: when the price is fixed, how many business days until payment, and what happens if testing finds a problem.
4. If the gold is in a vault: ask whether you can sell “in place” without withdrawing it, and what a withdrawal or transfer would cost.
5. Get paid by a traceable method and keep the sale invoice.

Documents to keep from the day you buy

• A full invoice showing product, weight, fineness and any tax charged.
• An assay certificate or warranty card with a serial number matching the bar.
• Storage confirmations, audit statements and a holdings list (if the gold is in a vault).
• The buyback offer you received when you bought — to compare when you sell.

Tax when you sell

A gain on selling gold may be taxable, and the treatment depends on where you are resident, how long you held the gold and what kind of product it is. As one example, the US IRS states that net capital gains from selling collectibles, such as coins, are taxed at a maximum 28% rate. Other countries have different rules, and some products may be treated differently from others. We do not state a tax rate as a general fact — ask a tax adviser where you are resident before you sell.

Common mistakes when selling

• Selling without comparing, to the first buyer who quotes a verbal “price of the day”.
• Opening sealed original packaging unnecessarily — it can make testing more expensive.
• Forgetting vault withdrawal costs when estimating proceeds.
• Losing purchase documents — it makes both the sale and any tax reporting harder.

To see in advance how the sale spread affects your result, enter it in the calculator. For spreads and round-trip costs, see the true cost of physical gold.