Selling Gold to a Coin Shop: What Happens Next?

Interested in selling gold to a coin shop? Or perhaps you already have. In any case, you may be wondering what happens after you sell gold to a coin shop. This article explores just that!

First, Your Items Will Be Verified

Trusted coin shops must first ensure that the items they purchase are authentic. Many shops use specialized equipment including X-Ray Fluorescence (XRF) analyzers, which are used to identify the exact composition of precious metals in an object. Others may use electronic gold testers. In any case, the item may be verified before purchase, or some shops will require sellers to show their ID in case the item is later identified as counterfeit.

Next, Your Items Will Be Assessed for Sale, Wholesale, Repair, or Refining

From there, coin shops will decide the next step for your items based on their own needs, the market, and the condition of the item.

• Items like broken jewelry and scrap gold will generally be wholesaled to a company that melts the items down, refining it into pure gold
• Items like gold coins or gold bars will often be kept by the store and re-sold to customers looking to buy gold
• Items like rare coins or collectibles containing gold may be sold to local collectors, sold online, or wholesaled to a specialty dealer

Ultimately, many coin shops make the decision based on their own stock levels. If the shop has many gold bars in stock already, they may sell a few to a wholesaler to free up some money for additional purchases. If stock is low, they will most likely keep purchases they make to resell to their own customers.

Coin Dealers Will Continually Buy and Sell at a High Volume

The business of a coin shop is all about high-volume transactions, with tens or even hundreds of thousands of dollars moving through a shop each day. Profit margins on items like gold coins are very low, so shops make up for it with high volume.

This is also why you’ll see a constantly changing selection of items at any coin shop you visit – and why it’s worth making frequent stops at local shops to uncover some new finds!

Pricing Will Vary With the Market and Supply & Demand

When you sell gold, three main things affect the price you will get:

1. Where you sell your gold. Make sure to use a trusted dealer and avoid pawn shops and many “we buy gold” places, as they tend to pay far under market value
2. The current spot price of gold. The price of gold changes constantly, as it is traded on global markets similar to stocks.
3. Current supply and demand trends. Certain items will have a bullion premium, which is the price above or below the intrinsic gold value (for example, an American Gold Eagle coin may be worth slightly more than the spot price of gold). However, premiums vary significantly depending on current supply and demand trends. When there are more buyers than sellers, you’ll see higher premiums. When supply is ample, you may find that dealers will only offer a little bit under the current spot price of gold.

The gold industry is unique in that it’s always changing on a daily basis. The price you can get today isn’t necessarily the price you can get tomorrow. Likewise, if you do go about selling gold to a coin shop, what that shop will then do with your items really depends on the current market conditions. Your items may be wholesaled, refined down, or put right on the store shelf to sell to another collector.

As Always, Choosing the Right Buyer is Crucial

A trusted gold buyer can give you a smooth, stress-free experience and the best value for your items. It’s very important to read customer reviews, work with a licensed and trusted dealer, and avoid potential gold scams when selling.

If you’re selling locally, check online resources like customer reviews on Google/Yelp, as well as the company’s profile with the Better Business Bureau (BBB). If selling online, you can utilize things like Trustpilot or the BBB to check ratings.

For people in the greater Seattle area, Bellevue Rare Coins is your one-stop-shop for all things gold. We have locations in Bellevue, Tacoma, Lynnwood and Issaquah. Whether you’re looking to buy, sell, or trade, we’ve got you covered. Learn more about selling to Bellevue Rare Coins here, or stop by to see why we’ve been the northwest’s trusted gold dealer since 1979.