10 Things to Consider Before Selling Gold or Silver

Selling physical gold or silver is usually straightforward, but getting a fair price depends on more than simply checking the spot price and accepting the first offer.

Before selling, it is worth understanding exactly what you own, how its value is calculated, whether there are any tax implications and what will happen between agreeing a price and receiving your money.

This guide covers ten practical considerations to work through before selling physical precious metals.

If you already know what you want to sell, you can also view our current gold and silver selling options.

Once you know what you own, establish the approximate value of the precious metal it contains.

Gold and silver are traded internationally, with market prices moving throughout the day. For a UK seller, the sterling price is generally the most useful benchmark.

The underlying metal value gives you a sensible starting point, but it is not necessarily the amount a dealer will offer you.

A 1oz gold bullion coin, for example, contains one troy ounce of fine gold, so its underlying bullion value can be compared with the current gold price. The same principle applies to recognised silver bullion products.

For live indicative selling prices across common bullion products, see our sell gold and silver page. Physical Gold publishes indicative guide prices and then confirms a live firm price before a sale is agreed.

Not every gold or silver coin should be treated simply as bullion.

Most mainstream investment coins are bought and sold primarily for their precious-metal content. However, certain proof coins, graded coins, limited issues and genuinely scarce dates can attract additional collector demand.

The important distinction is whether someone is likely to pay more for the coin itself, rather than simply for the gold or silver it contains.

A coin being old or limited in mintage does not automatically make it valuable to collectors. Demand still matters.

If you are unsure, it can be worth obtaining a specialist opinion before selling an unusual coin simply for its metal value.

One of the most common misconceptions when selling bullion is that the spot price is the price you should automatically receive.

It isn’t.

The spot price is a market benchmark. A dealer then has to consider the product being sold, current stock levels, demand, testing and handling costs, and the price at which they expect to resell the metal.

The difference between buying and selling prices is commonly referred to as the spread.

For widely recognised bullion products, this spread can be relatively tight. Less popular, harder-to-resell or specialist products may have a wider spread.

Selling precious metals does not have to mean liquidating your entire holding.

If you only need to raise a certain amount of cash, consider whether selling part of your portfolio would achieve that objective.

This is one reason many investors favour owning bullion in a mixture of sizes rather than relying entirely on one large bar. Smaller units can provide greater flexibility when it eventually comes to selling.

For example, someone holding ten 1oz gold coins can sell only the number required, whereas the owner of a single 10oz bar cannot sell part of that bar.

Your decision may depend on:

• how much cash you need;
• which assets are easiest to sell;
• the tax treatment of different products;
• whether any items carry collectable value;
• and which parts of your holding you would prefer to retain.

If your decision is primarily about when to sell rather than how much, see our separate guide to when is a good time to sell gold.

The best buyer depends partly on what you are selling.

A specialist bullion dealer is often the natural route for mainstream gold and silver investment products, while genuinely rare or collectable coins may benefit from specialist numismatic expertise or an auction environment.

A convenient buyer is not necessarily the buyer offering the strongest net return.

Whichever route you choose, check the buyer’s trading history, reputation, valuation process and payment terms.

Our guide to choosing a reputable online gold dealer covers some of the checks worth making when assessing a precious-metals business.

Shopping around can make sense, but make sure you are comparing like with like.

A headline percentage or indicative price is not always the same as the final amount paid.

Before agreeing to sell, establish:

• whether the quote is indicative or firm;
• how long the quoted price is valid;
• whether testing or valuation fees apply;
• whether postage or insurance costs will be deducted;
• whether any commission is payable;
• and when payment will actually be made.

For bullion, the most useful comparison is generally the net amount you will receive after any charges, not simply the advertised percentage of spot.

It is also worth checking whether the dealer’s price differs according to the product. Recognised coins and bars that are easy to resell may attract stronger buy-back prices than less liquid items.

Before handing over your gold or silver, you should know what happens next.

Ask how the buyer will verify the items, whether the agreed price can change following inspection and how quickly payment will be made once the metals have been authenticated.

A typical bullion transaction may involve:

1. obtaining an indicative valuation;
2. agreeing a live selling price;
3. delivering or sending the metals;
4. verification of weight, purity and authenticity;
5. payment once verification is complete.

For example, Physical Gold’s process involves providing an indicative price, confirming a live price, receiving the goods and then making payment following verification.

For common products, you can go directly to our:

• sell gold coins page;
• sell gold bars page;
• sell silver coins page; or
• sell silver bars page.

Once you have agreed to sell your gold or silver to Physical Gold, there are two ways to get your precious metals to us: send them securely by post or bring them to us in Hatton Garden by appointment.

Sending your gold or silver by post

We ask customers posting precious metals to use Royal Mail Special Delivery and provide us with the tracking number once the parcel has been sent.

Royal Mail can provide compensation cover of up to £2,500 per parcel. For higher-value parcels, Physical Gold’s own insurance covers the value above this amount, up to £50,000 per parcel, provided our sending instructions have been followed.

You do not need to include additional documentation with the precious metals. However, careful packaging is important.

Your gold or silver should be:

• placed inside a tamper-proof polyurethane mailing bag;
• securely protected with bubble wrap to prevent damage;
• packed so that the contents cannot move around or make a noise inside the parcel; and
• sent using Royal Mail Special Delivery, with the tracking number supplied to Physical Gold.

Before you send anything, a member of the Physical Gold team will email you precise but simple instructions explaining how to package and send your precious metals securely.

Bringing your gold or silver to us

If you would prefer not to post your precious metals, you can arrange to bring them to us in Hatton Garden.

Drop-offs are by appointment, so please arrange this with a member of the Physical Gold team before travelling. We will confirm where to come and what you need to bring.

Physical Gold buys a range of investment-grade gold and silver coins and bars, including metals originally purchased from other dealers where appropriate.

Our selling process is designed to be straightforward:

1. Check an indicative price
2. Contact us to confirm a live price
3. Receive confirmation and instructions for delivering your metals
4. We verify the items and arrange payment

Physical Gold also provides a buyback guarantee on precious metals purchased from us, giving customers an established route to sell their holdings when required.

You can view our current gold and silver selling prices and process or call 020 7060 9992 to discuss what you own.

What is the best way to sell physical gold or silver?

For mainstream bullion coins and bars, a specialist precious-metals dealer is often the most straightforward option. The best route can differ for rare or genuinely collectable coins, where specialist numismatic expertise may be worthwhile.

Compare the final price, security, valuation process and payment terms rather than choosing a buyer solely on convenience.

Will I receive the spot price when I sell gold or silver?

Not necessarily. The spot price is the underlying market benchmark. Dealers normally quote a separate buy-back price that reflects the product, market demand and their commercial spread.

Should I clean gold or silver coins before selling them?

Generally, no. Standard bullion coins usually do not need cleaning, while cleaning a collectable coin may damage its surface and reduce potential numismatic value.

Are Gold Britannias and Sovereigns subject to Capital Gains Tax?

UK legal-tender bullion coins such as Gold Britannias and Sovereigns can benefit from Capital Gains Tax exemption for UK individuals. Other gold and silver products may not receive the same treatment, so check the position before making a significant disposal.

For more detail, see our precious-metals tax guide.

Is it safe to sell gold or silver online?

It can be, provided you use a reputable buyer and understand the process. Check the company’s credentials, reviews, valuation terms, transport arrangements and insurance before sending valuable metals.

Can I sell only part of my gold or silver portfolio?

Yes. If your holding consists of multiple coins or bars, you can generally choose to sell only part of it. This can be useful if you need to raise a particular amount of cash rather than dispose of your entire holding.

Do old gold coins automatically have collectable value?

No. Age alone does not guarantee a numismatic premium. Rarity, condition, provenance and collector demand all matter.

If you think a coin may be unusual or valuable beyond its metal content, obtain an appropriate valuation before selling it simply as bullion.