Gold Standard Rises

27th August 2020

Gold Standard Rises Image

Without doubt, the most questions at the moment posed by buyers and sellers regard selling precious metals and specifically gold at auction. One large myth that needs to be dispelled is that with commission, you cannot make as much selling at Golding Young than through a jeweller, or scrap yard or sending through the post, to be weighed in.

All methods are in their own way legitimate and I am a firm believer in a horses for courses style to suit each particular vendor; some are uncomfortable sending things through the post, others want the familiarity of a local jeweller, many prefer the expertise of the auction house, all reasoning is valid however it is important to dispel a few false assumptions.

Firstly all companies charge a commission, the auction house publishes this and is as transparent a transaction as you will find. Everyone is buying and selling your gold to make a profit, you must remember this at every step of the process.

Buyers don’t just bid to the scrap price and drop out around 22% under it: yes the scrap price creates a minimum at auction but not a maximum. The illustrated gold case and a great number of sovereigns and other coins have recently sold miles over this level with us for a number of reasons; objects hold a collectable or rarity value.

The aforementioned 18 carat gold case is not only rare and valuable but of the highest quality, its hammer price of £4800 sailed past scrap and similar results have been seen: certain sovereigns are rarer than others and the auction house provides and advertises to many, throughout the world, and certainly not just to one person, speculators bid against collectors and dealers from across the world creating large and realistic prices for items even when commission rates are taken into account, we have as many speculators paying way above scrap price with the anticipation of it rising than ever before, so much so that the scrap price is irrelevant, it is changing vastly on a regular basis and estimates are often shot out of the water in ways never seen.

It is becoming increasingly frustrating when a vendor appears with diamond rings and precious stones but they have ‘scrapped’ the gold in elsewhere – we do best with yellow metal than anything else and it is at least prudent to let us estimate a price for it.

Of course auction is only one way to sell and buy gold, but it is a transparent way that encourages an open market and a strong price the advice is merely to at least bring us your items. At least see what we can achieve then take them elsewhere for a quote, realise we will make more in most cases and try them and see, you will not be disappointed.

Always get several opinions and choose the option that is right for you, if that is posting it and waiting for a cheque fine, but at least do the due diligence in asking us, you will not be disappointed!

« Back to News
Author
Craig Bewick Image
Craig Bewick

Grantham Head of Department, Chartered Auctioneer & Resident Valuer

BA (Hons) MRICS FNAVA
Tel: +44 (0) 1476 565118 Mobile: +44 (0) 7530 272433 E: craigbewick@goldingyoung.com
View Profile