How Do I Get the Most Out of Selling?

cash for gold, selling gold, selling silverQ: I want to sell at the right time to maximize profits – how do I do this?

A: Investors in gold and silver typically do a little selling in addition to their buying regimen. But if this will be of any use in your overall investing strategy, you will want to know how to get the most out of those occasional sales.

Sell when you need cash to buy something you need or when gold and silver are overpriced. You’ll have a good idea when gold and silver are overpriced when certain key ratios are met. Just because gold and silver moves up 5% this week doesn’t necessarily mean it’s a great time to sell. The best time to sell your gold or silver is when you have another, better use for your money.

Use a dealer you know, trust, and respect – and preferably one you’ve done business with in the past. Never go to a Cash4Gold or other We Buy Gold-type of business in your local strip mall. There’s a reason those things are popping up everywhere. These businesses generate huge margins and huge profits for the dealers. They do this by ripping off the consumer.

Let’s say you bring a pile of your old jewelry into one of these stores and that jewelry contains four ounces of gold. At a spot price of $2,000 an ounce, the melted value of your gold is $8,000. In most cases, these businesses will only give you about 20% to 40% of the melt value. You’d be lucky if you received $4,000.

These businesses are making 100% to 200% off of you instead of a fair margin of perhaps 5% to 15%. If you were to sell your scrap metals to My Gold Advisor, you’d receive between 85% and 95% of the melt value. We simply don’t believe in gouging people who don’t know how to value their old jewelry.