Buying gold can be an excellent investment. It is almost completely safe, even during times of economic crisis, as it keeps its value regardless of the cost of living.
We recommend investing in gold as it diversifies your investment portfolio – you will be able to fall back on your gold investments should other assets collapse.
If you do decide to sell your gold, you need to make sure that you sell to the right place. Getting a fair market price is vital if you do want to think of gold as an investment.
But where can you sell? We have put together a list of the best places to sell gold in Singapore. Keep reading to find out more.
BullionStar is Singapore’s biggest bullion dealer, specializing in gold and other precious metals.
BullionStar allows you to buy and sell gold as an investment. This gold comes in different formats – from coins and ingots to gold bars. They will also buy your gold from you.
On the whole, we have found that BullionStar comes highly recommended. The customer service is unparalleled and staff are always ready to give you information on your purchase.
If you want to sell gold, you will find that BullionStar’s transactions are completely transparent. Once you are offered a price, that is the price you can accept and the appraiser will not be haggled into a more expensive price point.
Singapore’s Chinatown is famed for its gold jewelry, especially in the heartlands. In Toa Payoh? Take a brief detour and get a quote on the value of your gold.
If you do go into a smaller shop make sure that you are explicitly clear that you are selling your gold, not pawning it. There will be a difference in price between the two different transactions.
Smaller Neighbourhood Stores
You might find that the best offer you receive for your gold comes from the most unexpected of places.
Smaller, neighborhood stores have fewer overheads than the fancy buildings and banks in the city center. This means that they have less expensive essential costs to cover, allowing them to sell gold for a little bit less and buy gold for a little bit more.
We recommend that you pop into a smaller, local pawn shop or jewelry store to get an evaluation. The prices of these places are going to be very competitive and possibly even a little more generous than the big names in the Downtown Core.
Sure, it will probably work out at being only a couple of percent different from anywhere else. But keep in mind that a couple of percent more for something expensive like gold can be more than you expect.
When To Sell Your Gold
Unless it is for an emergency and you have to sell it now, we recommend that you hold onto your gold investment until the right moment. The right time to sell will be when gold prices are high.
Gold does have a very stable value, but it does fluctuate a little. Demand, availability, and how much bullion governments and banks purchase in a year all impact the price. Governments implementing policies will also change the price of gold.
A perhaps controversial policy that will cause some turbulence being enacted somewhere in the world often causes a price hike.
This is because investors try to accrue as much gold as possible, increasing demand and decreasing availability, as they try to protect their assets.
We recommend that you do some research and follow the change in the value of gold. Doing this will mean that you are well versed in the selling of gold, increasing your chances of getting a good price.
Why You Should Sell Gold
If you think of gold as an investment, there is one principal reason why you would sell it: quick and easy money.
Gold is the easiest investment to liquidate and to quickly get a cash injection. It is an uncomplicated transaction – you take it to a prospective purchaser, they offer you a price for your gold, you either accept this price or you reject it and go somewhere else.
If you have chosen to invest in gold by purchasing gold jewelry, we recommend that you keep an eye on the price of gold and sell it when the value is high. Selling jewelry at any other time is likely to incur losses.
There is a good reason for this. Compare a block of gold to a piece of jewelry. The craftsmanship and effort that has gone into creating the jewelry are far higher than the gold bar.
The cost of craftsmanship is reflected in the price – gram for gram, gold jewelry will always be more expensive to purchase gram-for-gram than a bar.
Gold jewelry is also bought from boutiques or jewelry shops. The retailer in this instance will have more overheads to cover than the gold bar, driving the price further up.
This means that when you go to sell your jewelry, you are already at a disadvantage. You are likely going to face a shortfall due to the added cost of craftsmanship and retail. Selling when the price of gold is high means that you are more likely to fill this hole and turn a profit.
That said, do not part with sentimental jewelry just because the value of gold is high. Selling something that means a great deal to you unless necessary is never a good idea!
Process Of Selling Gold
Want to sell your gold but not sure of the procedure? This quick guide goes through how most places appraise gold. In our experience, the most common procedures are as follows:
- Take your gold into a store. Stores that buy gold will be well advertised on the outside but do not hesitate to ask if you are unsure.
- A member of staff will then appraise the gold. The value of a piece of gold is mostly determined by its purity and weight. External factors, like demand and availability, will impact your valuation. Most valuations are free.
- You will then be quoted a price based on the gold you have brought and the going rate for gold on that day. Again, this does change with demand and availability so we recommend getting a valuation when the price is high.
- If you accept the offer, you will get your money almost immediately. You may be able to choose how you get the money. Just about everywhere will offer cash that you can take with you immediately. Other stores will offer cheques, bank transfers, or even in some instances cryptocurrencies. Think about what works best for you before you accept.
- You do not need to accept this offer. You can try to haggle up but this is not always successful and will definitely not work in big establishments. We recommend that you shop around and go to a few different places before accepting the best offer.
- Keep in mind that you are likely not just limited to gold. Most places that buy gold will also buy other precious metals. This includes platinum and silver.
We focused mostly on selling gold jewelry but the process will not be different for bars, coins, or bullion. No matter what you are selling, be sure to do your research before you go.
Pawning VS Selling
If you need cash quickly but don’t want to part with your gold permanently, you could look into pawning it.
Pawnshops are all over Singapore and work by using your gold as security against a short-term loan. Be sure to think about such a transaction carefully before you commit to it but it may work out well for some people.
Do your research before you try to sell. You need to be equipped with as much knowledge as possible to get the best deals. The more research you do before you set out to sell your gold, the less traveling around in the heat you need to do.
Be aware that the value of gold is largely determined by its purity. If you have multiple pieces of gold at different purities, you may find that the prospective purchaser will offer you separate prices for each item.
Do not be afraid to shop around to find the best price. Remember, this is the gold that you have purchased as an investment – get a good price!
Different stores with different business practices are going to offer different prices. A large, fancy store in the heart of Singapore is going to have more overhead costs so is more likely to offer you a lower price.
Do some research to get a benchmark value for the gold that you have and keep this figure in your head. This will help you sniff out any suspicious or low-ball offers from prospective purchasers.
Selling gold in Singapore is easy.
The most important thing to remember is that you get what your gold is worth.
Be aware of what you have and what it is worth – do not accept an offer that is too low.
Don’t be afraid to shop around to find the best deal. You may find that the places offering the most for your gold are in unexpected places. Don’t snub your local store!