How to Sell Gold Without Getting Scammed—And Why It's a Good Time to Do It

If you have a gold bar or even gold jewelry, now is the best time to sell it because the value of gold is nearing an all-time high.

Since inflation isn't improving, many investors rely on gold when the stock market becomes unstable. However, many investors and even non-investors with gold in their storages are tempted to sell theirs since the price of gold is increasing.

FactSet, a financial data provider, confirmed that the value of gold is now around $1,900 per ounce. If you compare it with last year's, it is over 11% higher, around 62% higher than gold's value five years ago.

But selling gold also has its risks. If you want to sell gold without getting scammed, here's what you must do.

How to Sell Gold Without Getting Scammed?

(Photo : DAVID GRAY/AFP via Getty Images)
Gold bullion bars are pictured after being inspected and polished at the ABC Refinery in Sydney on August 5, 2020. Gold prices hit 2,000 USD an ounce on markets for the first time on August 4, the latest surge in a commodity seen as a refuge amid economic uncertainty.

CBS News provided all the necessary tips to ensure you will not get scammed when selling your gold bullion. These include the following:

Setting Your Expectations

If you own gold jewelry, then reselling them will be trickier. For example, some gold buyers will ask what's the purity of your gold chain or bracelet. If it is 18-karat, you will get less than 24-karat gold jewelry. But, there are some instances when the buyer will offer higher prices since they will buy the gold content and the entire aesthetics of your jewelry.

Always Research

Just like other activities involving money or valuable items, selling gold needs research (a lot of it). This is because you must know the habits and other things about the seller you plan to transact with.

For example, if you sell your gold to a brick-and-mortar buyer, expect the price to be lower. On the other hand, online gold buyers may offer you higher prices, but they will also put you at risk of getting scammed. This is why checking the reviews, transaction histories, and other details about the gold buyer is essential.

Get Insurance Coverage

Whether selling your gold to traditional buyers or online, the best thing you can do is get insurance coverage. Some insurance providers even offer up to $100,000 worth of gold insurance.

Selling Gold Online to Traditional Buyers

(Photo : Mario Tama/Getty Images)
Gold bullion bars and coins are seen for sale at Manfra, Tordella and Brookes, Inc. January 9, 2003 in New York City. The price of gold has risen by nearly 30 percent over the past year with investors looking for stability as war with Iraq has become more likely.

Selling your gold online and to brick-and-mortar buyers has its pros and cons. The Diamond Pro provided the benefits and downsides of each:

Selling Gold Online

Pros