Costco has revised its return policy regarding precious metals. One caveat in the fine print is that gold coins are not returnable, the opposite of virtually every item they sell.
Analysts at Wells Fargo estimate that the warehouse club could sell as much as $100 to $200 million in gold, 75,000 to 80,000 troy ounces per month.
Although Costco’s extensive list of available gold products is impressive, a quick scroll through the r/CostcoPMs forum on Reddit, which tracks when new offerings are available, shows that the majority of 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.
If you’re sitting on a stack of Gold Buffalo bought from Costco and want to sell it for cash and get the highest price possible, there are a variety of options available.
The Wall Street Journal recently reported that selling gold bars requires a bit more effort than the few clicks required to 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.
The process can be easy and straightforward once you understand the various places where you can sell gold.
Online Bullion Dealers
Online bullion dealers specialize in trading precious metals and regularly buy collections and investment portfolios for those interested in liquidating.
While each dealer has a process unique to their business, some dealers make it easy for you to do a self-appraisal of sorts by publishing their buyback rates on their websites. This helps you estimate 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 buyback price and a process for handling the intake, which they will provide 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 receive 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 postage cost, while others may require you to send the metals at your expense.
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 typically issues payment via check or ACH.
Local Coin Shops
The Local Coin Stores in your area are a good starting point when looking to sell gold coins.
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. At the same time, others can provide you with an appraisal or estimate over the phone.
When you contact the local shops, it’s a good idea to know what the current spot gold price is trading at. Many local coin shops will use the current market price when bidding for your gold. However, some may use the closing price from the previous day. This is common if you sell over the weekend or on holiday when the trading markets are closed.
It’s a good idea to contact at least two or three local shops. Expect to get a wide range of offers since each dealer will have its own buy/sell spread. Some will be 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 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.
Sigma PMV machines are standard testing equipment for businesses that trade in precious metals, especially local coin shops. These devices use electromagnetic resistance to verify gold coins without damaging them. They can also verify the purity and composition of encapsulated coins. Extension wands allow the testing of smaller pieces.
Depending on the value, some dealers may pay cash, but most will pay with a check.
eBay
eBay is notable for collectibles but is 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 and final valuation fees and includes other incentives to help keep the prices low.
There are even times when dealers offer a product for a lower price on eBay than on their own website. Individual collectors and investors cannot 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 buyback program managed by APMEX.
Facebook Groups, Reddit, and other Online Forums
There are thousands of Facebook groups, Instagram, and TikTok channels focused on buying/selling/trading gold coins and other precious metals. Many are operated by local coin shops, investors, coin clubs, collectors, numismatists, traders, and other enthusiasts.
Various groups on Reddit have developed community ratings systems that help identify active members with a positive reputation.
While selling coins through these online communities is possible, developing trust as a seller requires some 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 is 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.
