Most common questions about Gold and Silver - Part 1

If you have inherited gold and silver coins from a loved one, you may be wondering how to sell them and get the best value for your inheritance. Selling inherited coins can be daunting especially if you are not familiar with the coin market and the tax implications. Here are some tips to help you sell your inherited gold and silver coins in Australia:

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Question: How do I start buying gold and silver?

Response: To start buying gold and silver in Australia, it's important to educate yourself about these metals and establish a well-informed approach. Research different types of gold and silver products such as bars, coins, or ETFs (Exchange-Traded Funds). Familiarise yourself with reputable dealers or online platforms that specialise in precious metals. You can buy gold bullion privately online, but it is much riskier than buying from a registered dealer². Well-known Australian gold dealers will offer guarantees for the gold and silver that they sell, so you can feel confident and secure by choosing this method of purchase². Determine your budget and investment goals, and consider consulting with a financial advisor or precious metals expert who can provide guidance tailored to your specific needs.

Question: How do I know if the price I'm paying is fair?

Response: Ensuring you pay a fair price for gold and silver requires conducting thorough market research. Stay updated on current market prices by monitoring reputable financial news sources or dedicated precious metals websites¹². Compare prices from different dealers to get an idea of the prevailing market rates¹. Be cautious of significantly lower prices, as they may indicate counterfeit or low-quality products¹. Consider factors such as dealer reputation, product quality, and additional costs like shipping or storage fees when assessing the overall fairness of a price¹.

Question: Where do I sell my bullion after I buy it?

Response: There are several options for selling your bullion. Reputable dealers that sell gold and silver often offer buy-back services. They can assess the purity and value of your bullion and provide a competitive offer. Online bullion marketplaces and auction platforms are alternative avenues for selling your precious metals. Additionally, local coin shops, pawnbrokers, and private collectors may also be interested in purchasing your bullion. Research potential buyers, compare prices, and consider the reputation and reliability of the platform or dealer before finalising a sale.

Question: How hard is it to sell gold and silver?

Response: Selling gold and silver is generally straightforward due to the global demand for these precious metals. However, the ease of selling can vary depending on factors such as market conditions, the form of the metal (bars, coins, etc.), and the liquidity of the product. Popular gold and silver coins or bars from well-known mints tend to be more liquid and easier to sell. It's essential to research potential buyers, understand market trends, and be prepared to wait for the right selling opportunity to maximise your returns.

Question: Should I buy gold and silver from Facebook?

Response: It is generally not recommended to buy gold and silver from informal sources such as Facebook or social media platforms. Precious metals transactions involve significant financial investments and require dealing with reputable and established dealers or platforms. Purchasing from unknown individuals on social media can carry higher risks, such as counterfeit or misrepresented products, unreliable sellers, or potential fraud. Stick to authorised dealers, well-established online platforms, or trusted local coin shops to ensure the authenticity and quality of your gold and silver purchases.

Question: What safety do I need to know about with buying gold and silver online?

Response: When buying gold and silver online, safety precautions are essential. Ensure you are dealing with a reputable and secure website that uses encryption to protect your personal and financial information. Look for clear return policies, customer reviews, and professional certifications. Verify the authenticity and reputation of the seller or platform before making a purchase. Consider insured shipping options for valuable shipments and track the delivery of your package. Keep documentation and records of your transactions for future reference.

Question: Where should I store my gold and silver?

Response: Storing gold and silver requires careful consideration of security and accessibility. Various options are available depending on your circumstances. Some individuals choose to store their precious metals in a secure home safe or a safe deposit box at a bank. Others opt for specialised secure storage facilities that offer high-level security and insurance coverage. It's important to assess the pros and cons of each option, considering factors such as insurance, convenience, cost, and peace of mind.

In Australia, there are various options available for storing gold and silver. Some mints around Australia offer storage, as do specialised vault companies; however, third-party storage will incur additional fees¹. The Perth Mint Depository offers three options for storing precious metals at The Perth Mint, including as allocated, pool allocated or unallocated metal³. Melbourne Mint offers a world-class high-security storage facility in Melbourne's CBD². Gold Bullion Australia offers private storage with full replacement insurance⁵.

Question: What is toning?

Response: Toning refers to the natural discolouration or patina that develops on the surface of silver coins or bars over time. It can manifest as shades of various colours, such as brown, grey, blue, or even rainbow-like hues. Toning occurs due to environmental factors, including exposure to air, moisture, or chemicals. It is often considered an aesthetic characteristic of silver and can enhance the uniqueness and collectability of certain pieces.

Question: Does toning devalue my silver?

Response: Toning does not necessarily devalue silver. In fact, toning can sometimes enhance the value of a silver coin or bar, especially if it is considered aesthetically pleasing or rare. Toning is subjective, and different collectors may have varying preferences. However, excessive or unnatural toning, especially if it obscures the original design or compromises the metal's quality, may have a negative impact on value. Ultimately, the value of toned silver depends on factors such as rarity, condition, desirability, and collector demand.

Question: Can gold tone?

Response: Unlike silver, gold is resistant to toning or tarnishing. Gold's inherent chemical properties make it highly resistant to corrosion or discolouration, even over extended periods. Gold's stability and durability are among the reasons it has been prized as a precious metal throughout history. Therefore, you can expect gold to maintain its lustrous appearance without developing toning or tarnish.

Question: What is the best size to start with when buying gold?

Response: The best size to start with when buying gold depends on your budget, investment goals, and personal preferences. Gold is available in various sizes, from small fractional coins to larger bars. Smaller-sized coins or bars provide affordability and flexibility for entry-level investors. They are also more easily liquidated if needed. Consider factors such as premiums, resale potential, storage requirements, and liquidity when determining the best size for your gold purchases. Consulting with a financial advisor or precious metals expert can provide valuable guidance tailored to your specific investment objectives.

Disclaimer: This article is intended as an opinion piece and does not constitute financial advice. Investing in bullion carries risks, and individuals should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.

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