What is Bid Price Vs Ask Price?
When you’re ready to sell your Precious Metals, two terms you are 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
You are ready to sell your Precious Metals. Here’s what you do:
- See who wants to buy your Precious Metals
Did you know you can sell Precious Metals back to Precious Metals sellers? Many online retailers that sell Precious Metals will also buy them back whenever you are ready to cash in. You can also try jewelers, pawn shops or coin shops, 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.
- See what the bid prices are for your Precious Metals
It is a good idea to sell Precious Metals when they are liquid. The more liquid something is — 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, and a list with the bid price and ask price so you can see the spread — the cost of selling Precious Metals — on the market.
- See what prices you might get
If your Precious Metals aren’t priced like you wanted or they aren’t listed on a retailer’s wanted list, you should consider selling other pieces in your portfolio. If Gold isn’t fetching the price you were hoping for, try selling Silver instead. Selling Silver is just as easy as selling Gold, and the metal’s affordability may make it easier to sell. Ultimately, your goal is to get as much return on your investment as you can, and that means being flexible with the market.
- Contact your buyer
Whether or not you find your product on a retailer’s wanted list, you should contact your preferred buyer. They’ll want to know if you’re selling Gold or Silver, and they may still be interested in making a bid.