What to know about gold buyback programs before you sell

Buyback programs allow investors to sell their gold directly back to a precious metals dealer. Most reputable gold dealers offer buyback programs, helping streamline the selling process. Still, terms, pricing and fees can vary.

If you’re looking to cash in on your gold investment, here’s what you need to know about how gold buyback programs work, how dealers determine pricing and what to look for before choosing where to sell.

“A gold buyback program allows you to sell your gold products back to the dealer you originally purchased them from,” explains Eric Croak, a certified financial planner at fee-only fiduciary wealth management firm Croak Capital in Toledo, Ohio.

These programs typically apply to bullion products — physical coins or gold bars — and are designed to make the resale process more straightforward. However, they don’t guarantee you’ll recover the price you originally paid.

Buyback prices are based on gold’s spot price ( the current market value at the time of sale), not your purchase price. If gold prices fall after you buy, your resale value will fall as well. Dealers may also factor in their own inventory needs, market conditions and profit margins when determining an offer.

Gold dealer buyback…

Original source: https://www.usatoday.com/money/