Things You'll Need:
- Internet connection
- Telephone
- Gold and /or silver you want to sell
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Step 1
I will outline a few strategies you might want to consider after you have purchased gold and silver. I will then provide some time tested methods of the process of selling your holdings.
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Step 2
The first step is to record all your purchase prices, amounts you purchased, where you purchased them, and what date you purchased them. If you use a spreadsheet program, you can then make formulas to value your assets of gold and silver.
If you have made a number of purchases you will also have a number of purchase prices. Highlight your purchase prices in your spreadsheet with the color red. -
Step 3
One strategy for determining when to sell your holdings is to sell half your holdings whenever an investment doubles from the purchase price. For instance, if you purchase 100 ounces of silver at $15.00 per ounce you would sell 50 ounces when the price reaches $30.00 per ounce. This strategy essentially takes your original investment off the table when the price doubles meaning what is left in gold and silver is profit.
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Step 4
You must also give consideration as to what your ultimate sell price might be. In other words, when you would sell most if not all of your holdings. As it is virtually impossible to know when the price of anything has reached its peak, it is better to establish the peak yourself and hold true to it. Will gold reach $2000.00 per ounce? Will silver hit $100.00 per ounce? You will find all sorts of opinions on this speculation. You will know if greed is sneaking up on you when you are searching out the articles that are predicting $10,000.00 per ounce gold and $800.00 per ounce silver. Be careful getting caught up in the hype!
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Step 5
You have now established your strategy for when you will sell your gold and silver. Now the process of selling. THE best way to sell is to find someone who is looking to buy! This is the best avenue for several really good reasons. Both the buyer and seller can agree on using the "spot price" of gold or silver because for the buyer it does not carry the premium a dealer adds to the price, and for the seller the spot price will be higher than what a dealer will offer. You have eliminated the middle man! Another good reason for this approach is that having eliminated the middle man there is also no paper trail, no capital gains tax.
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Step 6
Currently it is possible to walk into a car dealership and purchase a car with gold bullion. With this in mind it opens the door for consideration that should the dollar fall in value, or worse collapse, both gold and silver can become a means of monetary exchange. In other words both gold and silver may well be used in place of dollars as a medium of exchange. There are many gold and silver owners who are buying for this very reason.
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Step 7
Ebay has been a great place to buy and sell gold and silver as it reflects an actual free market opportunity where demand of an item sets the purchase price. On several occasions the U.S Mint has stopped distribution of gold coins due to gold supply shortages. On these occasions the price of gold on Ebay reflected that shortage by going up significantly in price, in fact the price for gold on ebay was much higher than it was on the NY Comex (commodity exchange) because it was one of the few places you could find sellers who had inventory!!
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Step 8
Last but not least, selling your gold or silver to a dealer, coin shop or pawn shop might not get you the best price, but the price should be reasonable. Follow my Ehow on the process buying gold and silver and how to determine what a good price is for your precious metals. The same research process is good for buying or selling. "How to Purchase Gold and Silver"
Comments
catvanloan said
on 12/21/2009 This is helpful. Thanks
goldiec said
on 4/19/2009 Great article on selling gold and silver 5* Thanks
ttbirdie said
on 4/8/2009 Excellent tips on selling gold and silver, 5*