Selling gold: questions to members from a novice.

First of all I want to explain that I have no gold to sell, I have found no gold to sell but I have intentions of fulfilling both of these ambitions this year.

How do I go about selling gold that I have discovered?

Q1. Who do I sell my gold to?

Q2. What are my options?

Q3. Are there any traps that I should be aware of, are there unscrupulous buyers?

Q4. What are my legal obligations to divulge finds and sales to Government departments? (Taxation, Centrelink, etc).

Q5. How do I calculate the value of my gold? How do I interpret the price of gold? Does the price of gold declared at the end of the news on TV each evening, mean anything to me?

Q6. Why are some nuggets worth more than the measured weight of a piece of gold? What determines whether a nugget can be sold for more than the measured weight?

Q7. A couple of years ago we spent a few weeks in WA having a ball digging up Australia.
We didn't find any gold but we had a ball.
As a memento of our trip I bought my wife a small nugget from Kalgoorlie.
I paid more than the measured weight because I was told the nugget shape increased it's value.
Gullible or not, I chose to believe it and my wife now has a lovely memory of our holiday in her display case.

I have always wondered what made this nugget worth more due to it's shape?

I would like to paste an image on this page but I don't think I can.
(When I find my scales, I will give you the weight also.)

If someone tells me how to post an image, will do it.

Thank you,

Peter.

Peter
There are goldbuyers in each state.They normally pay spot price au $56.25 at the moment.Per gram.For scrap , the small stuff less 15% for larger ie pendant pieces can vary from less 10% to less 5 %.For the bigger stuff spot price up depending on size.A nugget that has a shape ie heart , seahorse dolphin etc is worth more by weight than a nugget of the same weight of no discerning features.Chrystaline gold is more valuable again.
Retailers can and do charge way over the odds.Im sure some of our members will give info on other methods ie ebay and Becks.Also approaching jewellers direct is worth looking at.With the gear travelling expenses, the knowledge and luck to find it I would never except less than spot price.
Cheers dig

Dig24crt wrote:Peter
There are goldbuyers in each state.They normally pay spot price au $56.25 at the moment.Per gram.For scrap , the small stuff less 15% for larger ie pendant pieces can vary from less 10% to less 5 %.For the bigger stuff spot price up depending on size.A nugget that has a shape ie heart , seahorse dolphin etc is worth more by weight than a nugget of the same weight of no discerning features.Chrystaline gold is more valuable again.
Retailers can and do charge way over the odds.Im sure some of our members will give info on other methods ie ebay and Becks.Also approaching jewellers direct is worth looking at.With the gear travelling expenses, the knowledge and luck to find it I would never except less than spot price.
Cheers dig

Thanks Dig,

Sorry to ask a basic question, what is described as "Spot price"?
Thanks,

Peter.

PS: is it possible for me to display a photo image on this forum?

Peter
See Kitco or goldprice thru google, as for downloading photo.It can be done , but its something Ive never done.Use searchbox top right .
Cheers Dig

try this Pete. http://goldprice.com.au/

As I mentioned before, here is a photo of the piece of gold I bought for my wife when we were in Kalgoorlie.

Peter.

G'day Peter,

Good to see you have worked out how to post your picture of your wife's Nuggy and thanks for sharing it here.  
Here is a link to the "current gold price" on the forum, this is the one I use when I login, it has the US & AU$/oz & grms.  

https://golddetecting.forumotion.net/t40-current-gold-price

Hope this helps you.  

Cheers.

Mike.

Spot Price.
The spot price is the current market price at which an asset is bought or sold for immediate payment and delivery. It is differentiated from the forward price or the futures price, which are prices at which an asset can be bought or sold for delivery in the future.

Also remember that spot price is quoted on 999.9 pure gold, also remember that all gold nuggets no matter how good they look are not pure, most nuggets would be in the average range of 925 or 92.5%, some will be higher and some will be lower, the most common thing that lowers the purity is silver.

Gold bullion and gold bars bought from a refiner will have 999.9 stamped on them along with the weight and the refiners mark.

The only thing that makes gold nuggets worth more than spot price is the look of them and there size, most small nuggets won't get a premium price.

The nugget in your picture looks very nice, though IMHO is not a jewelry piece as it looks to have many points and holes, but very nice to look at all the same.

cheers dave

G'day Peta.

The price of gold you will see on our news programs and such is in US dollars, you then need to find out the value of the Aust. dollar and then convert. The gold price is also TROY ounces which contains 31.103 grams as opposed to AVOIRDUPOIS ounces which only contains 28.35 grams.

The link given by Kon shows both US and AUS prices as well as per gram.

This price is the SPOT price i.e. "the price at that point in time". By the time you get to the buyer or seller the gold price may have changed as well as the AUST. dollar so you may end up getting more or less if you are selling, but working it out before hand will give you an idea of what to expect.

This price is the value of 24 carat gold, so if your gold contains impurities, which it will, then allowances are made for this. Another thing to keep in mind is ASSAY. Not very important if you are selling to a nugget collector but it is if you are selling nuggets to places like the Perth Mint where they will refine it and pay you for the gold content.

ASSAY: This is the real gold content of your nuggets. If you send your gold to the Perth Mint to be refined, they will melt it down then remove all of the impurities such as silver, copper, etc and the final weight of the pure gold left over is what you will be paid for.

You might have a 3kg nugget which contains 96.45 TROY ounces.
A spot price for gold of $1700.00 AUS makes this valued at $163,965.00.
Nuggets over 1kg are extremely rare so a collector might pay 50% more which makes it about $240,000.00

If you send it to the Perth Mint for refining they will melt it down and remove the impurities and the left over gold may only weigh 2.7kg, leaving 86.8 ounces at $1700.00 so you will receive $147,220.00. This will be their ASSAYed amount, actual 24 carat gold content. You may receive payment for the silver as well.

One more thing to be careful with is that recently I have heard that there is a 10% GST on gold so some buyers may try to pay you 10% less than what you should receive. Do not fall for this. If you are selling to them then you may need to ADD the 10% to the price, not the other way around. I am not very familiar with this scenario so others may be able to elaborate on it more.

When selling nuggets to private individuals I would be selling at the gold price of the day depending on the size of the piece. You can do a google search of gold sales and you can get some sort of idea.

This is as much as I know about buying and selling gold and as I have never sold any of my gold other than at car boot sales in the 80's so I cannot offer any more help than this. I'm sure some other members will be able to add to this.

Happy mother's day.

Regards Axtyr.

Goods and Services tax (GST)
Gold bars or coins 0.995 or more fine and silver bars or coins 0.999 or more fine are deemed to be ‘investment grade’ and are exempt from GST. Since gold Sovereigns, Krugerrands and American Eagles (US 50 dollars) and pre-2013 Silver Britannia’s are not ‘investment grade’ they are subject to GST. Understandably these are not hugely popular coins with Australian investors. Notably any gold or silver coin with numismatic value is also not ‘investment grade’ and thus subject to GST regardless of fineness.

Australian tax payers can avoid GST entirely by buying privately from non GST-registered sellers, ie. the majority of infrequent or one-off traders. You can find these on eBay and Silver Stackers. Visitors to Australia (ie. non- tax residents) can get GST costs refunded as explained here.

Identification is required by bullion dealers for trades worth A$5,000 or more. Cash transactions greater than A$10,000 must be also reported. Check out our Premiums section for information on gold and silver premiums at Australian bullion dealers.