Gold prices have returned to the peaks experienced roughly ten years ago, when you may have first noticed the huge growth in cash-for-gold businesses and advertising. The rush in businesses offering cash for your old jewellery or coins was the result of record-breaking gold prices, and with prices high once more, you may be thinking about trading in unworn and broken jewellery, coins, or other heirlooms made from precious metals.
Toronto is home to a robust gold market, whether you’re buying or selling gold jewellery and coins, and you’re likely no stranger to seeing ads on TV about it. With so many options and offers, it’s not easy to know the best place to sell gold in Toronto.
How to Sell Gold Coins in Toronto
There are big differences between the types of gold you might own. The two most important factors are weight and purity.
Investment-grade, bullion gold coins and bars have some of the highest gold purities available at 99.9% or even higher. This is the equivalent of 24-karat gold. Jewellery doesn’t use 24-karats because the metal is too soft and needs to be alloyed with other metals, such as silver or copper.
If the coins are older or unique, you may want to take them to a coin shop to be evaluated for collectible value. Collectability is difficult to determine on your own and should be left up to an expert.
Authenticity of Gold Coins in Toronto
Gold coins widely collected include the American Gold Eagle and the Canadian Maple Leaf. Due to the collector component, you must pay additional fees and taxes on top of the price you would have paid for the same amount of gold held in bar form. Additionally, compared to gold bars, coins often contain less gold. For instance, only 91.67% of an ounce of American.
How to Check the Integrity of Gold Coin
Eagle coins are made of gold. The coin really weighs 1.1 ounces, of which around one ounce is pure gold, and the remainder is made up of silver and copper.
You can check the integrity of older coins or coins that are not produced by the Royal Canadian Mint using a few easy tests.
Gold with a Magnet: If you can grab your coins with magnets, it is either not made of pure gold or a gold alloy because gold is not magnetic.
The “Ping” Test: A high-pitched tinkling sound should be audible when you strike a gold coin. Non-gold coins make a significantly duller sound that doesn’t reverberate as long.
The unglazed ceramic plate test: If you drag gold across it, you should see a gold mark rather than a black mark.
Nitric acid should not cause pure gold to rust or oxidize. This is hazardous, as it will tarnish your other metals and any less-than-pure gold items. To test various gold karats, different strengths of acid are available.
Where to Sell Gold Coins in Toronto
You can purchase gold coins through dealers, pawnbrokers, and reliable private sellers. The Royal Canadian Mint, Canada Post, and the country’s top five banks are other sources of gold coins.
If you are worried about counterfeiting, the Royal Canadian
Mint’s Bullion Digital Non-destructive Activation (DNA) technology, which is available at the mint or an authorized Bullion DNA dealer, can be used to confirm the authenticity of gold coins dated 2014 or later. The specific security markings on your coin that can only be seen through the Bullion DNA device are digitally verified using specialized software by a Bullion DNA device after taking a high-resolution photo of the coin.
How to Sell Gold Jewellery in Toronto
Selling gold jewellery can also be profitable if you know where to go. The best places tend to be jewellers and professional gold buyers with a long history in the business.
Avoid offers from pop-up buyers who tend to travel around. They’re known for offering tantalizing prices but underpaying in the end. Your best bet is to go with a business with a local presence and community. You can generally expect more honest practices because they’re not going anywhere. They have to live with the reviews they get.
Taking old jewellery to a jeweller or a business specializing in gold valuables besides coins can help you take advantage of the whole item, not just the bullion content. For example, some cash-for-gold businesses simply discard precious stones on rings or necklaces and don’t pay for them. They are only concerned about the melt value of the metal.
The Canadian Jewellers Association requires its members to abide by a code of professional conduct that includes an obligation for candour and openness on the nature of the jewellery they sell. These jewellers would be a good place to start.
Laws to keep in Mind while Selling Gold Jewellery in Toronto
Additionally, the Proceeds of Crime (Money Laundering and Terrorist Financing Act) mandates that precious metals and gemstones dealers in Canada who transact for $90,000 or more adhere to the anti-money laundering rules established by the Financial Transactions and Reports Analysis Centre (FINTRAC) (PCMLTFA). This means that dealers must implement a compliance procedure, maintain a record of everything they sell, obey government ministerial directions, and comply to Know Your Customer laws.
To verify the calibre of your gold when you sell it again, you’ll also want to make sure you have as much documentation as possible.
Additional methods for purchasing gold
1. The Gold Mine Stocks
You can purchase stocks in businesses that mine and refine gold as an alternative to investing in actual gold. Newmont Mining Corporation and Barrick Gold (GOLD) (NMC) are top gold mining firms.
Even if the price of their stocks might not exactly follow the price of actual gold, they will probably be connected. This allows you to invest in gold without taking on the hassle or risk of handling physical gold.
2. Mutual funds and ETFs that invest in gold
With gold mutual funds or ETFs, you can invest in a variety of gold-related assets as opposed to just one company that is linked to gold. Gold funds offer coverage to gold futures and options, several gold mines and refinery equities, and funds that monitor the price of gold.
3. Royal Canadian Mint Exchange Traded Receipts (ETR)
The Royal Canadian Mint introduced Exchange Traded Receipts (ETR) for Canadian Gold Reserves in 2011. As a result, investors now have the chance to purchase gold kept in the mint’s reserves as a security listed on the Toronto Stock Exchange (TSX). Since an investor owns the physical gold bullion directly through an ETR rather than indirectly through a stake in a company that owns gold, an ETR differs from a normal gold ETF. Based on the gold price at the time you cash out or the ETR’s market price, gold ETRs can be redeemed for 99.99% pure gold coins, bars, or cash (whichever is the lesser of the two). At the time of purchase, an additional fee of 0.35 percent will be added to the share price.
4. Options and futures
Futures and options may appeal to investors willing to assume additional risk. You should generally stay away from these gold investments for the moment because they are rather speculative if you are unfamiliar with either of those terms.
With gold futures, you commit to buy or sell gold at a specific price in the future. A gold options contract gives you the right to purchase or sell gold if its price reaches a specific level by a given date.
Successfully purchasing gold futures or options necessitates a brokerage account and an in-depth understanding of the market. To ensure that you don’t lose the chance to put your alternatives into action, you’ll need to keep a tight eye on the price of gold and your account. Because futures and options typically involve employing leverage or borrowing money to buy securities, you can also end up amplifying any losses you suffer.
Insight on Rose gold!
Yellow gold and copper alloy are called rose gold. It has the malleability and gloss of gold, which makes it ideal for jewellery, and the pink colour of copper. Rose gold is today adored for its sturdiness and lovely pink colour.
Rose gold is unique among fine jewellery metals in that it has a subtle pinkish colour. Each item of rose gold jewellery is given a feminine, vintage vibe by its distinctive colour, which is extraordinarily beautiful. In addition, this pinkish gold is one of the toughest! Compared to white gold and yellow gold, it is more durable. In fact, only platinum is harder than it.
Only that rose gold is not hypoallergenic is the only warning we have. Avoid rose gold if you have a copper allergy. Rose gold jewellery is fashionable and useful, making it a popular choice for both celebrities and regular people. Celebrities’ stunning rose gold engagement rings have fueled the flames of this craze. So, if you’re looking for a metal that makes you think of old Hollywood, seriously consider rose gold jewellery.
Have Your Jewellery Evaluated
It’s a best practice among gold buyers to offer free evaluations of gold jewellery before offering a price. Don’t hesitate to have someone look at it and offer a price, even at multiple locations.
You should also look for establishments that publish the prices they pay by volume and purity. Public pricing takes all the guesswork out of it. Once you’ve confirmed the weight and purity of the item, you know exactly how much to expect. Sometimes that information can even be found on the item itself.
Selling gold doesn’t have to be intimidating. Go to the right gold buyer, and they’ll make the process simple and reassuring.