What is the sell back value of gold? If you buy gold today at $1000.00 an oz, how much can it be sold for?
rabidliberal asked:
I heard on CNBC that the gold bought today will only be able to be sold at 60 to 70% at what ever the price is at that time.
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I heard on CNBC that the gold bought today will only be able to be sold at 60 to 70% at what ever the price is at that time.
December 1st, 2009 at 10:32 am
Yes — generically speaking the investment commission on precious metals is 10% to 20% (sometimes expressed as a markup rather than a commission).
The retail spread is often double that — or 40%, especially if you go too far down market to sell. You are almost always better off with a specialist, jeweler for jewelry, coin dealer for coins, etc. because they are the only ones who will every pay you a premium for specifics if it exists. MVD34
December 4th, 2009 at 5:27 pm
Most coins dealers I have seen will buy or sell at the same price (current London fix). They make their money off fees. If you buy for 1000 and pay a $25 per oz fee, then you walk around the block, you could probably sell it back for $1000, but would have to pay another $25 per oz fee, so it would cost you $50 per oz for the round trip. This is why it’s hard for individuals to make money trading physical gold. It has to go up that much just to cover your costs. Some dealers charge more than $25. That’s for standard bullion coins. Unusual bars could be a lot more. Ted