With regards to precious metals, Costco has revised the return policy for these products. One of the caveats in the fine print is that gold coins are not-returnable, unlike virtually every other item that they sell.
It’s been estimated by analysts at Wells-Fargo that the warehouse club could be selling as much as $100 to $200 million in gold per month, which is as much as 75,000 to 80,000 troy ounces per month.
Even though Costco’s extensive list of available gold products, a quick scroll through the r/CostcoPMs forum on Reddit that tracks when sales are posted, shows that majority recent offerings have been American Buffalo and American Eagle Gold Coins, Maple Leaf Gold Coins and gold bars in various sizes from 1 oz to 100 grams from PAMP Suisse and RAND Refinery.
There are a variety of options available if you’re sitting on a stack of Gold Buffalo bought from Costco and want to sell for cash and get the highest price possible.
The Wall Street Journal recently reported that selling gold bars takes a bit more effort than the few clicks it takes sell stocks, bonds or crypto. Gold is a tangible asset, unlike stocks, bonds and crypto. It’s something physical that can be stored in your possession, which is one of the primary characteristics that sets it apart from other assets.
Once you have an understanding of the various places that you can sell gold, the process can be easy and simple.
Online Bullion Dealers
Online bullion dealers specialize in trading precious metals and they are a regular buyer of collections and investment portfolios for those who are interested in liquidating.
While each dealer has a process that is unique to their business, some dealers make it easy for you to do a self-appraisal of sorts by publishing their buy back rates on their websites. This helps to get an estimate of what each piece in your collection is worth.
Others may require you to contact them and submit the details of which gold coins you would like to sell via email, chat or a form on their website. Each will have a unique buy back price as well as a process for handling the intake, which they will provide to you once you contact their sales team.
Typically, online dealers will make an offer for your precious metals based on the current market rates, however, the price may not be fully locked-in until they are in receipt of your metals.
If you agree to sell them the metals at the quoted price, you then mail the metals to their intake center. Some dealers will provide a mailing label to cover the cost of postage, while others may require you to send the metals at your cost.
Once the dealer receives your metals, the package will be opened on camera and each piece will be inspected and tested on a Sigma or XRF machine to ensure it is genuine and authentic. Once everything is confirmed, the sales team will issue payment, most typically via check or ACH.
Local Coin Shops
When you’re looking to sell gold coins, the first thing to do is contact the local coin stores in your area. Some local coin shops will post their buy and sell prices for bullion coins and bars on their websites. While others may be able to provide you with an appraisal or estimate over the phone.
When you contact the local shops, it’s a good idea to have an idea of what the current spot gold price is trading at. Many local coin shops will use the current market price when making a bid for your gold. However, some may use to closing price from the previous day. This is common if you are selling over the weekend or on holiday when the trading markets are closed.
It’s a good idea to contact at least 2 or 3 local shops. Expect to get a wide range of offers since each dealer will have their own buy/sell spread, with some being absurdly low, while some will be within typical market ranges.
The offers you get when you sell 1 oz Gold American Eagle Coins to a local coin shop should be slightly above the melt value. The exact rates will vary depending on local market conditions, the condition of the coins and the volume of coins in the secondary markets.
Many local coin shops also accept walk-ins without an appointment. You can often just walk in with your gold coins and lay them on the counter to receive an immediate offer. The clerk will inventory what you’ve brought and assay any pieces they may need additional confidence in.
The Sigma PMV machines have become standard equipment for any business that trades in precious metals, especially local coin shops. These devices use the electromagnetic resistance to verify gold coins without causing damage to the coin. These devices can also verify the purity and composition of coins that are encapsulated. Extensions wands allow testing of smaller pieces.
Depending on the value, some dealers may pay cash, but most will probably pay with a check.
eBay
eBay is notable for collectibles, however, they are also the largest online marketplace for buying and selling precious metals. Beyond numismatics and collectibles, many of the largest online bullion dealers including Bullion Exchanges, APMEX, and JM Bullion sell many of the same products through eBay. eBay offers large volume sellers higher discounts on listing fees, final valuation fees and includes other incentives to help keep the prices low.
There are even times when dealers will offer a product for a lower price on eBay than on their own website. It’s hard for individual collectors and investors to compete when selling bullion gold coins like Gold Buffalos and Maple Leafs.
While the selling fees make it prohibitive for individuals to sell, eBay does offer a precious metals buy back program that is managed by APMEX.
Facebook Groups, Reddit and other Online Forums
There are thousands of Facebook groups, Instagram and TikTok channels focused on the buying/selling/trading of gold coins and other precious metals. Many are operated by local coin shops, investors, coin clubs, collectors, numismatists, traders and other enthusiasts.
There are various groups on Reddit that have developed community ratings systems that help identify active members with a positive reputation.
While its possible to sell coins through these online communities, developing trust as a seller is something that takes a number of transactions with positive feedback.
Pawn Shops and Cash4Gold Stores
There are around 11,000 pawn shops in the US, with the highest concentrations of stores in lower-income areas. Pawn Shops and Cash4Gold stores are typically considered places of last resort for selling gold coins.
Selling gold coins to pawn shops may seem convenient and quick, but their primary aim to make a profit when they resell items. This means they need to purchase yours at a lower price to ensure they make a profit upon resale, regardless of changes to gold price. As a result, offers from pawn shops might be significantly below the market value of your coins.