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How to get the best price for physical gold and silver

hiriskpaul
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How to get the best price for physical gold and silver

#314315

Postby hiriskpaul » June 1st, 2020, 4:27 pm

Where is the best place to sell gold sovereigns?

Also, scrap gold, such as a broken watch?

And while I am at it, I have a bag of silver coins, mostly UK pre-47 and pre-20 silver, but also a few silver Swiss coins, US silver coins, etc. No numismatic value as not in good enough condition (I have checked for rarities!). What is the best way to sell?

hiriskpaul
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Re: How to get the best price for physical gold and silver

#314318

Postby hiriskpaul » June 1st, 2020, 4:30 pm

ps, also where to sell US quarter eagles?

PinkDalek
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Re: How to get the best price for physical gold and silver

#314327

Postby PinkDalek » June 1st, 2020, 4:44 pm

Whenever a question comes up along these lines some people refer to https://www.hattongardenmetals.com/sell-scrap-gold.aspx but I have no personal experience.

An external search via google finds this random topic (which may answer some of your questions):

viewtopic.php?t=21051

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Re: How to get the best price for physical gold and silver

#314400

Postby thirty06 » June 1st, 2020, 9:00 pm

In my experience, most dealers in jewellery and coins will buy precious metal for at least scrap value. I used to sell the stuff to a local chap who trades in coins, stamps, jewellery and the like. He paid me the same as the people who advertise and would sometimes buy items for what they were, rather than just metal.

hiriskpaul
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Re: How to get the best price for physical gold and silver

#314501

Postby hiriskpaul » June 2nd, 2020, 11:55 am

Thanks for the links. Hatton Garden Metals prices seem to be very good for sovereigns. Convenient for me as I can cycle to them - I am not keen on sending gold in the post.

No mention of silver purchase, but I might hang on to that anyway as prices are not near all time highs, unlike gold.

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Re: How to get the best price for physical gold and silver

#314544

Postby 1nvest » June 2nd, 2020, 1:54 pm

No mention of silver purchase, but I might hang on to that anyway as prices are not near all time highs, unlike gold.

US data, but not that dissimilar to the UK (except with Brexit/declining £ gold has performed even better), comparing a 4% SWR applied to each of all-stock and all-gold since 2000
Image
and stock with a 4% inflation adjusted income being drawn out of total returns since 2000 has seen near two thirds of its inflation adjusted value wiped out. Gold has been much better.

A similar pattern to the 1970's, but (so far) without the high levels of inflation/interest rates that helped see stock values subsequently 'recover'.

Why all or nothing? Simple periodic rebalancing can see the volatility adding significantly to number of shares or ounces of gold being increased/reduced. From that US data for instance there are years where one was up >20% whilst the other was down more than -20% such that the purchase power of one over the other > 50% increase. Whilst 'trading' such volatility can be as simple as yearly rebalancing back to 50/50.

The mistake is to not trade, just keeping a block of gold as a doorstop pays no dividends, similar to buying a home and leaving it empty, or buying a farm and leaving it idle. Physical gold for deep holdings - that you're unlikely to trade, gold fund for lower cost to trade.

Since 1972 https://tinyurl.com/ybqlroa9 and all-stock with 4% SWR drawn saw a additional 0.63% annualised real benefit on top of that. In contrast 50/50 stock/gold had nearly a 4% higher real CAGR than that. Fundamentally gold pretty much was the saviour asset in both the 1970's and since 2000, whilst stocks were the saviour asset during the 1980's/1990's. If you avoided one or the other then gains over one period were handed back over another.

IMO counting it a part of 'cash' (safe) is appropriate, third each stock/gold/cash holdings, yearly rebalanced, or even 25% in each of stock and gold, 50% cash. Stock/gold 50/50 is a form of barbell, that converges to a central currency unhedged global bond type bullet, that partnered with cash converges to yet another central bond bullet type point. Which is pretty close to being a Harry Browne Permanent Portfolio type asset allocation for your 'cash' holdings.


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