Selling gold isn’t something you do every day. Whether it’s an old chain, inherited coins, or investment bars, turning gold into cash requires a smart approach. The market can be rewarding, but only if you know how it works.
Many sellers jump in without understanding the value of what they’re selling, how pricing works, or which buyers are trustworthy. That’s when they risk getting far less than they should. You don’t need to be an expert, but you do need to know the basics.
If you’re looking to sell gold, working with established platforms that specialise in precious metals can help you get a fair and competitive price. They also make the process easier and safer.
Know What Kind of Gold You Own
Not all gold is the same. Jewellery, coins, and bullion each hold different values. The karat rating tells you how pure the gold is. For example, 24-karat gold is 99.9% pure, while 18-karat is 75% gold. The rest is made up of other metals.
Gold bars and investment coins generally command better prices than scrap jewellery because their purity is higher and easier to verify. Understanding exactly what you have gives you a better chance of getting a price that reflects its true worth.
Check the Current Gold Price
Gold prices change daily. What you get today could be different from what you’d get tomorrow. The current market rate is called the “spot price.” This is the global price for pure gold per gram or ounce.
When you know the spot price, you can do a quick estimate of what your gold might be worth. Multiply the weight of the pure gold in your item by the spot price. Keep in mind that most buyers won’t pay 100% of the spot price, but it’s a solid reference point.
Understand How Buyers Value Gold
Buyers will typically test your gold to confirm purity and weight. For jewellery, they’ll also consider the craftsmanship and whether any gems are included. But in most cases, especially with scrap gold, you’ll be paid based on the gold content alone.
Some dealers melt gold down to recycle it, while others resell it as-is. That’s why gold bars, especially those from recognised refiners, often get better offers. If you’re selling bullion, keeping it in its original condition and packaging can increase its resale value.
Get Offers from Multiple Buyers
It pays to shop around. Gold buyers don’t all offer the same rates. Some charge hidden fees or make deductions that lower your payout. Others might offer much better prices, especially for larger quantities or purer items.
Get at least three quotes before making a decision. Compare not just the final amount, but how they calculated it. A transparent breakdown helps you see who’s giving you the fairest deal.
Research the Buyer’s Reputation
Not all buyers are trustworthy. Look for well-reviewed companies with a strong track record. Check customer reviews, third-party ratings, and how long they’ve been in business. Reputable gold buyers are upfront about their processes and don’t pressure you to sell.
Avoid dealing with anyone who won’t give you a written quote or tries to pay you significantly below the market rate without a valid reason. A little research can protect you from scams and lowball offers.
Know the Costs and Terms
Some buyers may deduct handling, testing, or refining fees from your payout. Ask about any charges before agreeing to a sale. If you’re sending your gold through the mail, find out if return shipping is free in case you decline the offer.
Also, check how long your quote is valid. Gold prices move fast, so offers can expire quickly. Some online services let you lock in a price based on the current rate, even before they receive your gold.
Understand Tax Implications
In the UK, selling gold can be tax-free, especially if you’re selling investment-grade gold like coins from the Royal Mint. However, if you’re making significant gains or selling large volumes, it’s worth checking if Capital Gains Tax applies.
Always keep a record of the sale, especially if you’re selling gold regularly or as part of an investment strategy. Speak to a financial advisor if you’re unsure about your specific situation.
Prepare Your Gold for Sale
While gold value is mostly based on weight and purity, presentation still matters. Clean jewellery gently to remove dirt, but avoid polishing, as this can scratch the surface or reduce weight.
If you have gold bars, keep them in their original sealed packaging. Bars that come with certificates of authenticity or serial numbers often fetch higher prices, especially when selling to collectors or investors.
When Should You Sell?
The best time to sell is usually when gold prices are high, or when you need the cash for a better opportunity. If your gold has appreciated over time and you don’t plan to hold it long-term, it could be the right moment to sell.
Watch economic trends. Gold often rises in value during times of inflation, uncertainty, or stock market instability. Timing your sale with the market can significantly improve your returns.
FAQs
How do I know if my gold is real?
You can check the hallmark for karat ratings, test it with a magnet (gold isn’t magnetic), or have it professionally tested by a dealer or jeweller. Reputable buyers will always verify gold before purchase.
What is the best way to sell gold bars?
The best way is through trusted online platforms that specialise in bullion. They offer competitive rates, secure transactions, and transparent pricing. You can sell gold bars quickly and safely this way.
Do I need ID to sell gold in the UK?
Yes, most reputable buyers will ask for valid identification to comply with anti-money laundering regulations. This helps ensure safe and legal transactions for both parties.
Will I get the full value of the gold spot price?
Most buyers offer a percentage of the spot price, not the full value. The exact amount depends on the type, purity, and condition of your gold, as well as the buyer’s pricing structure.
