How to Sell Precious Metals

Most precious metals guides focus heavily on buying and say little about selling. That is a mistake, because how well you sell determines your actual return. Selling gold or silver to the wrong buyer, at the wrong time, or without proper documentation can cost you a significant percentage of the value you have built.

This guide covers every major selling channel, how to compare offers, what paperwork to have ready, and how to navigate the tax implications of a sale.

Where to Sell Precious Metals

You have several channels available, each with different price levels, convenience, and requirements:

Your Original Dealer (Buyback Program)

If you bought from a reputable online dealer, selling back to them is often your simplest option. Major dealers like APMEX, JM Bullion, and SD Bullion publish live buyback prices on their websites for standard bullion products. You ship your metals to them (insured), they inspect and confirm the product, then wire you the agreed amount.

Dealer buyback prices are typically 1%–3% below spot for gold coins and bars, and 3%–8% below spot for silver. This is the spread they earn on the round trip. It is a fair price for a fast, guaranteed transaction.

Local Coin Shops

Local dealers offer the advantage of immediate, in-person transactions — you walk in, they inspect your metals, you walk out with cash or a check. Pricing can vary significantly by shop. Some local dealers pay competitively; others offer well below spot, especially for customers who do not appear to know current prices.

Always check spot price before you walk in, and know the buyback price from at least one online dealer so you have a baseline. If a local shop's offer is more than 5%–8% below spot for standard products, politely decline and try the next option.

Peer-to-Peer Sales

Selling directly to another buyer through precious metals forums (Reddit's r/PMsforsale), local classified ads, or coin shows can get you closer to spot price by cutting out the dealer margin. Buyers on these platforms are often experienced collectors or investors who know what they want and will pay fair prices for quality products.

The tradeoffs: meeting a stranger with thousands of dollars in metals involves safety considerations. Always meet in a public place, bring a friend, and use payment methods that are immediate and non-reversible (cash, verified cashier's check). Be cautious of buyers who want to pay by personal check or who seem unfamiliar with standard product pricing.

Auction Platforms

eBay is the most common auction platform for precious metals. Completed sale prices give you a realistic picture of what the market will actually pay. Selling fees on eBay can run 10%–13% of the sale price including PayPal/payment processing, which eats into your return compared to dealer buybacks.

Auctions make most sense for numismatic or semi-numismatic coins where collector demand can push prices well above melt value. For standard bullion, the fees usually make dealer buyback more favorable.

Coin Shows and Expos

Precious metals and coin shows — held regularly in most major cities — let you walk from table to table soliciting offers. With multiple buyers competing for your business in one room, you can often get a better offer than walking into a single local shop. Research upcoming shows through the American Numismatic Association's event calendar.

Comparing Buyback Offers

Never accept the first offer you receive. The right approach is:

1. Check the current spot price (Kitco, Apmex, or any financial site)
2. Get a quote from at least two online dealers' buyback programs
3. Get a quote from your local coin shop if convenient
4. Compare all offers as a percentage of spot
5. Factor in any shipping costs for online transactions

The highest net offer, after all costs, is the right choice. For large sales (over $5,000), the difference between a good and mediocre offer can easily be $200–$500 or more.

What Makes Your Metals More or Less Valuable at Sale

Not all bullion sells equally well. Factors that influence the price you receive:

• Product recognition: American Eagles, Maple Leafs, and bars from PAMP or Perth Mint sell at the best spreads because every buyer knows exactly what they are. Generic rounds or obscure private mint products may require assaying and will fetch lower prices.
• Condition: Bullion is not graded like collector coins, but visibly damaged, scratched, or corroded pieces may raise authentication questions and reduce buyback prices. Keep your metals in their original packaging or protective capsules.
• Documentation: Having original receipts from your purchase helps establish provenance and simplifies the transaction. For IRA-held metals, your custodian handles the sale; you do not sell them directly.
• Size: Larger pieces (10 oz+ bars) often fetch better spreads than 1 oz products because dealers prefer moving fewer, larger transactions.

Tax Implications of Selling

The IRS classifies physical precious metals as collectibles. This is an important distinction:

• Long-term capital gains on collectibles (held more than one year) are taxed at a maximum rate of 28% — higher than the 15%–20% rate that applies to stocks and other investments for most taxpayers.
• Short-term gains (held one year or less) are taxed as ordinary income at your marginal rate.
• Your cost basis is what you paid, including premiums and shipping. Keep all purchase receipts.
• Dealers are required to file IRS Form 1099-B for certain transactions above reporting thresholds. Know what triggers reporting in your state — rules vary.

Timing Your Sale

If you are selling for financial need, timing may not be in your control. But if you have flexibility, a few principles apply:

• Selling during periods of high public interest in precious metals (typically during inflation spikes or geopolitical crises) means higher spot prices and sometimes elevated premiums on the sell side too.
• Avoid panic-selling during sharp short-term drops. Precious metals are long-term holdings; reacting to short-term volatility typically locks in losses at the worst time.
• If you are selling to rebalance a portfolio, consider selling gradually over several months rather than in a single large transaction.