For gold traders, buying and selling gold ingots can be a direct line to making profits on the bull run gold’s been experiencing over the past few years.
Since 2006, the price of gold has tripled, recently hitting the $1,300 per ounce mark. The enthusiasm for gold investing has touched all gold products, including gold mutual funds, ETFs and physical gold products like bullion and bars. Buying and selling gold ingots is one way you can cash in on the gold rush without having to deal with complicated financial products such as ETFs and mutual funds.
Gold ingots are gold bars made from pouring molten gold into a mold an allowing it to harden. They’re the simplest form of gold investment, and often have premium prices well below that of bullion coins.
Here’s a few tips on how to buy and sell ingots:
On buying
- Study the gold market carefully to learn the current price of gold and which direction fundamentals are indicating the price is going to go.
- Set a price at which you’re willing to buy and don’t go over that price.
- Keep up with ingot sales on eBay. Occasionally, gold investors looking for a quick liquidation will sell ingots under market value, opening up a great opportunity for an alert buyer.
- Keep a close eye on trading sites the Nucleo Exchange and APMEX. Both sites offer very competitive deals for buyers and sellers of gold ingots and other gold products.
- To reduce shipping and storage prices, try to buy gold ingots through a certificate program.
- Make sure you buy from reputable gold dealers to avoid getting light or counterfeit ingots.
On selling
- Again, keep a close watch on market fundamentals, including the spot price of gold. The spot price is the current per-ounce wholesale rate for gold that institutional investors are paying.
- Make sure you keep track of how much you paid for each ingot in your possession to prevent you for selling a piece for less than what you paid for it.
- Try selling on Craigslist. Advertising there is free, and you’ll avoid transaction charges you might incur on other sites.
- Provide full details on your ingots when posting them online. List weight, fineness, manufacturer, serial number, etc. The more documentation you provide, the more legit buyers will perceive you to be.
Buying and selling gold ingots is a great way to cash in on the gold rush. Do your homework, pick your investments carefully and you’ll be well on your way to reaping profits from the gold trade.
