With the popularity of cryptocurrency and other digital forms of stocks and trading taking off in recent years, many seem to have forgotten about one of the original forms of trading.
Gold is considered to be one of the most important precious metals around the world, and is still fairly well sought after. Especially gold bullion, which is considered to be one of the purest forms of gold on the market.
So if you have gold bullion to hand and want to make a little extra money, how can you cash in your gold bullion?
This is the question that we are going to cover for you today! We’re going to tell you everything you need to know about cashing in your gold bullion to get physical cash.
We’ll also talk about all the laws that you will need to be aware of, and when you will need to report that you’ve cashed in your gold for physical money. So let’s take a look at everything we need to know about cashing in gold bullion!
How Do You Cash In Gold Bullion?
The best way to cash in your gold bullion – whether that be as a gold bar or as a minted coin – is to contact a reputable buyer. It’s all too easy to be drawn in by scams or by people who will pay you far less than you should get for your gold bullion.
The best option by far is to opt for an online retailer who will buy your gold bullion (see also ‘Is It Worth It To Buy Gold In 2022?‘) from you, as they won’t have as many overheads as a physical store.
A company such as Abe Mor is arguably one of the best businesses for this. This is a reputable company that is based in New York, and will even give you secure shipping to send them your gold bullion so ensure that it is looked after while in transit.
You will need to submit an estimate of what you think your gold bullion is worth, based on the weight of your gold.
They will then evaluate this for you, and tell you how much they think the gold is worth, and you can either accept or refuse the offer that they give you.
It will be best to go with a reputable company such as this one rather than pawn stores or jewelry stores.
This is because even though these businesses can give you cash for your gold on the spot, they will typically offer you less than your gold bullion is actually worth.
This is because they will generally need to sell the gold bullion for a profit, so they need some wiggle room in what they offer you so that they can make this profit.
So before you do try to cash in your gold bullion, it will be very important to do your research beforehand.
By opting for a company such as Abe Mor, you can often get a much higher price for your gold bullion that you would if you were to take it to a pawnbroker.
Do Banks Accept Gold Bullion?
If you feel reluctant to send your gold bullion to a company that you’ve not really heard of before in the mail, you may feel tempted to look for other options, such as taking your gold bullion to the bank.
However, the vast majority of banks no longer accept gold. This is because the introduction of fiat currency altered the interest when it comes to precious metals such as gold.
Out of all the banks in America, your best bet will be to take your gold bullion either to a commercial bank or a cooperative bank.
You can always double check with your specific bank to make sure whether they would accept gold bullion or not, but the vast majority of savings banks will only accept legal tender.
The only thing to bear in mind when approaching a bank is that because very few actually accept gold bullion, you’re not guaranteed to be able to sell to them.
How Much Gold Can I Sell Without Reporting?
It’s important to know that if you sell gold that reaches over a certain threshold, you will be required to report it so that you can be taxed on this amount.
This is because the IRS considers gold to be a collectible, which means that the more valuable it is, the more tax will need to be applied to a transaction.
You will need to pay tax on the profit that you have made from selling your gold bullion.
So if you bought your gold bullion for $100, and sold this for $200, then you would be charged tax on $100 profit. You won’t have to pay the tax straight away, but will instead have to declare it on your next tax return.
And there you have it! You now know that the best way to cash in your gold bullion is to find an online retailer that will be able to offer you a higher price point.
It’s important to always do your research beforehand so that you can rest assured that you’ve found a reputable company to deal with.
Something like Abe Mor, which is based in New York, is your best bet.
This is a highly reputable company that will ask you to give them an estimate as to how much your gold weighs, which will then give you an estimate of how much it is worth via their online calculator.
You can then send your gold bullion to them in the mail via FedEx, and it will be fully insured in the meantime. They will then evaluate your gold in person, and tell you what they think it’s worth.
It’s best to avoid going to pawn brokers or jewelry stores, as they will have to pay you less than your gold bullion is worth so that they can make a profit. Research will be key to get the right price for your gold bullion!