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Do dealers buy gold at spot price?
A precious metals dealer is in business to sell metals. Dealers usually offer buy prices for metals, as well as sell prices. It does not matter if the price of a metal goes up or down, the dealer stands ready to buy at or below the spot price and to sell above the spot price.
How do gold merchants make money?
Usually, gold merchants sell gold by adding a premium and you would actually end up paying extra which will curb your profits. It is always recommended to purchase gold from authorized brokers. It operates just like a stock and backs 99.6\% of pure gold. It is cash equivalent and easier to purchase or dispose.
What percentage do gold dealers make?
Selling Gold Depending on the dealer, the product, and the volume of metal being bought or sold, the buy-and-sell spread varies from 0.5\% to 35\% per transaction.
How much over spot should I pay for gold bars?
On average, you should expect to pay between 2 and 5 percent over spot. Any more than that, and you’re going to have a harder time recouping your costs.
How much do I lose when I sell gold?
When you sell gold coins or bars, you should expect to receive at least 90\% to 95\% of the current market value. But with gold jewelry, you’re likely to get only 70\% to 80\% of the melt value.
Can you make money selling bullion?
Typically, the recommended option is to sell your silver bullion to a reputable dealer or precious metals firm. They’ll normally give you the going market rate for your silver plus a reasonable markup so they can earn a profit as well. Selling on online auction sites is another option.
How does a bullion dealer make money?
Dealers make their money on the “premium,” the amount charged over the spot price. For a US Mint Gold Eagle, you may pay a premium of $60 above the spot price of gold. But before you assume that a gold dealer makes $60 per coin, you must also consider that dealers do not buy these coins at the spot price either.
How is the gold spot price determined?
The spot price of gold is determined by the forward month’s futures contract with the most volume. At times this contract can be the current month or it might be two or more months into the future. The largest influencers on gold’s spot price fluctuations today comes from the COMEX in the United States.
Can you make money with gold bullion?
1. Buy gold bullion or coins. The most straightforward way to put your money in gold is to buy and store gold bars, coins or jewelry. To actually make a profit off the precious metal, you need to have a reasonable expectation that your gold can be sold for more than you paid for it.