When it comes to selling gold in the UK, everyone wants to ensure two key things: security and achieving the highest price. But trying to find who really pays the highest for gold can be difficult when some buyers don't clearly display their pricing, and some dealers have hidden commissions or fees on their displayed prices. This guide will break down your options and help you choose the route you’re comfortable with and get a clear written offer before you decide.
Specialist gold buyers will typically value your gold using three measures, weight, gold purity and the current market spot price. Professional gold buyers will pay you a percentage of the current gold spot price. For example, if the spot price per gram for 9 carat gold is £28 per gram, a gold buyer will usually pay you their own unique percentage of this price leaving room for their profit margin. So a gold buyer paying 93% of the spot price will pay you £26.04 per gram for 9ct gold (93% of £28).
The area of negotiation forms where you can haggle on this percentage with the potential scrap gold buyer. You should try to get yourself the highest percentage possible, but be understanding that there still needs to be a profit margin for the buyer. You may typically expect to receive between 92-95% of the spot price for scrap gold in any condition, you should avoid any sellers pricing below this.
Complexities can arise when your gold may be worth above its weight in gold, if the item is an antique, has historic significance, or is a designer piece that carries a price premium. If you believe this may apply to your valuables then you should avoid having your gold valued on its weight, and should only use this value as a benchmark to achieve a higher premium.
In recent years, as technology has advanced there has been a surge of businesses offering online gold buying services. Due to the competitive nature of online commerce, the prices per gram for selling gold online have increased significantly. Companies like ourselves are able to provide an extremely high percentage of the gold spot price for gold in any condition.
The process of selling online usually involves applying for the business to send you a prepaid, insured envelope to your address which you can safely pack your gold into and drop off at a local post office for delivery to the gold dealer.
Yes, online gold buyers pay very high prices for gold. However, it's important to navigate this sector with care and be vigilant when choosing an online gold buyer. Before sending your gold, always check reviews, choose a business with advertised prices, compare offered prices, and ask if there are any commissions or undisclosed fees. You should try and choose a business with a physical dedicated business address advertised and not just a PO Box address.
It's also important to read the small print and find out what the process is if you decide you want to reject the offer and have your gold returned to you.
At Cheshire Gold Xchange, we have a physical high-street store, high gold pricing, displayed pricing via our website, no commissions, and a free return process if you're our not happy with our offer.
High-street jewellers, can often be a fair option for selling gold, they are conveniently located in most towns and can be seen as an easy option. If you are not looking to sell gold online via the post then you can turn to an established local jeweller with a good reputation to cash in your gold.
Jewellers generally fall into the fair to low gold pricing category, they can excel in pricing where gold jewellery contains stones or large precious gems which a specialist gold buyer may exclude from their valuation.
Jewellers have large overheads and generally low transaction volume, jewellers typically work on large margins selling new jewellery so look to try carry this margin into their pre-owned gold jewellery sales.
With their low transaction volume and high margin business model, a reputable jeweller will tend to pay 75-88% of the gold spot price for scrap gold. You may be able to achieve higher price with a jeweller who will look to retail your gold item as a pre-owned piece, however they will be selective on what they pay a higher premium on and may mean you are losing out on some pieces if you try to sell a bundle of gold jewellery.
Pawnshops are usually located in town and city centres, they will often provide a seller with an outright purchase price and also offer customers the option to loan money against their gold according to the value of the item. Pawnshops will typically lend customers 25%-60% of the items resale value, their outright purchase prices on gold are often on the very low end.
Pawnshops generally pay very low rates on gold whether you choose to pledge your item or sell outright. We would generally recommend not selling gold direct to a pawnbroker, and only utilise their services where you feel a loan is really a better option when you have full intent to pay back. You should always consult professional advice before entering into any legal agreement.
Scrap metal merchants deal primarily with metals like copper, aluminium, and brass, but many also buy gold and other precious metals. These places often have a very industrial feel, can be quite intimidating to visit, and usually don’t provide the best atmosphere for selling personal or sentimental items.
Prices offered for gold at scrap metal merchants are generally reasonable, as they do specialise in metal reclamation. However, when it comes to bullion and coins they usually don't have retail facilities for selling pre-owned bullion so may offer lower rates on these items or offer scrap rates on items that should be priced at a premium.
Selling gold through auction houses, such as Bonhams or Fellows Auctioneers, can sometimes yield very high returns for antique jewellery or rare gold items. Auctions create a competitive environment, driving prices higher than direct sales. Auctions also give your item the opportunity to sell for it's true market value, given that the audience are targetted. However, keep in mind auction fees, commissions, and potential waiting times for auctions to complete. Sending your item to auction also means there is no guaranteed sale, so can be lengthy process especially if there is no financial gain at the end of it.
If the gold has historic significance, or antique value above it's gold weight auctions can be an excellent option for achieving the highest price for your gold. Auctions should be avoided for scrap gold or gold jewellery to be sold on weight, as the auction houses are often populated with trade buyers who will be looking to buy at scrap price after fees, so this may leave you with quite a low return.
Specialist online gold buyers will usually offer some of the highest prices for gold to be sold on weight alone. Transactions are quick with valuations and payments usually made same day. Choose who you sell to carefully read reviews and look for advertised prices.
Selling gold that has antique value well above it's gold weight we would recommend sending to an auction house who specialise in jewellery. This will allow you achieve the true market valuation for your gold.
Selling your gold doesn't have to be complicated. By carrying out some research you can ensure you get the best possible price for your gold, turning your precious metals into the maximum cash return. Whether you opt for convenience or hold out for the highest bidder, being informed guarantees you the best deal possible in the UK gold market. Contact Cheshire Gold Xchange today if you are looking to sell gold, for free impartial advice on your best options.
Receive your prepaid, insured envelope to send your gold to us. Find out more visit Sell Gold Online
