What is Bid Price vs. Ask Price?
When you’re ready to cash in on some of your Precious Metals, you will need to know how to sell Gold or sell Silver. As you seek out a buyer, two terms you’re likely to encounter are “bid price” and “ask price.”
Bid Price:The price at which a dealer is willing to buy your product.
Ask Price:The price at which a dealer offers to sell the same product.
Prices in Action
Consider this scenario: You’ve got quite a collection and you are ready to sell Gold coins. Here’s what you do…
1. See who wants to buy your Gold coins
Did you know you can sell Gold back to Gold sellers? Many online retailers like APMEX that sell Silver and Gold will also buy your Precious Metals whenever you are ready to cash in. You can also try jewelers, pawnshops, coin shops, etc., but there is much less risk involved when working with reputable retailers whose sole business is buying and selling Precious Metals. These businesses will know exactly what your products are worth and can offer you the best bid prices.
2. See what the bid prices are for your Gold coins
It is a good idea to sell Gold coins when they are liquid. The more liquid something is — i.e., the more in demand or rare — the easier it is to sell. Also, the more liquid, the smaller the spread will be between the bid price and the ask price. That means more money for you. Dealers often list the items they are interested in buying. If you want to sell Gold coins, check to see who is buying what. Many dealers post a list with the bid price and ask price so you can see the spread, or the cost of selling Gold on the market.
Keep in mind that the cost of selling Gold is a lot less for major Gold sellers than for you as an individual so selling to them, even at a lower bid price, will save you money.
3. See what prices you might get if you sell Silver coins instead
Maybe your Gold coins aren’t priced like you were hoping, or they aren’t even listed on a retailer’s wanted list. Even if they are, you should also consider selling Silver coins or other pieces in your portfolio. Selling Silver coins or Silver bars is just as easy as selling Gold, and in fact, the metal’s affordability may make it easier to sell Silver coins over Gold. Ultimately, your goal is to get as much return on your investment as you can, and that means being flexible with the market.
4. Contact your buyer
Whether or not you find your product on a list, contact your preferred buyer. They’ll want to know if you’re selling Gold or selling Silver and chances are they may still be interested in making a bid!
See how Gold, an ancient storehouse of wealth, plays a vital role in modern investment portfolios. Watch Video
Written to acquaint you with Precious Metals investing and all the ways APMEX helps you succeed. Read more