But is this the best way to buy gold in Otley?
Because gold has a fixed value, known as the spot gold price (which changes throughout the day), you probably imagine that any gold you buy, whether it’s gold jewellery, scrap gold, Gold Sovereigns, Gold Krugerrands, or other gold coins will be valued at that fixed price, but it isn’t.
All dealers add on a premium when they sell gold to you, and subtract a premium when they buy gold from you. This is their profit margin.
What that premium is, will differ from dealer to dealer, and the likelihood is that a small local jewellers or gold dealer will add on a bigger premium than the huge online gold traders.
This is because local gold sellers in Otley will not do much gold buying or selling compared to the major national dealers, and their overheads per gram of gold they sell will be much higher.
The big online gold companies specialise in buying gold and selling gold in huge volumes, and to do this they cut their own profit margins to the minimum possible to encourage as much trade as possible.
For these reasons, you are almost always far better off buying gold from a reputable online gold dealer than a small local pawnbroker, jeweller, or gold shop.
I’ll explain more later on how to get the most gold for your money.
Buy Scrap Gold Otley
Scrap gold basically consists of broken pieces of gold jewellery, common gold coins, and other forms of gold that will need to be melted down to be re-used.
Some local jewellers will save the scrap gold they have until they have a reasonable amount before they sell it on or send it for melting down, so they might have some scrap they are willing to sell to you.
However, you are still likely to pay a bigger premium on the scrap gold you bought locally in Otley than if you buy it online – gold is still gold and has a value, broken jewellery or not.
Other options for buying scrap gold in Otley are:
- Local auctions. Often auctions have gold in their sales, but you will be bidding against other people who know its value, and you will end up paying what it’s worth. Make sure you have calculated its value, and don’t go over the maximum price you have decided on. Also factor in any buyers fees or you could end up paying way too much for the gold bought;
- eBay auctions. Online auctions can be a good place to buy gold, but again you are bidding against a lot of other people. Because the vendor has auction, shipping, and payment fees, they might mark up the price to the point where it becomes too expensive. There’s also the risk of fraud;
- Run local ads. This is an option, but it’s probably not a good idea to advertise to the world that you have gold at home, nor to go meet people with a lot of cash in your pocket;
- If you want to buy gold for the least money have a shop around for deals on the website of an online gold dealer:
Buy Gold Coins Otley
If you want to buy gold coins in Otley then you’ll probably look for a local gold coin dealer in Otley since they are “near to me,” but will this get you the most gold coins for your money?
The answer is almost certainly no, you’ll probably get less gold for your money when you buy locally.
It’s the same if you sell gold in Otley.
Why is this?
A local gold coin dealer has all of the overheads of a small shop in a small area and all of the costs that come with it, whereas a big, national gold specialist who deals online has a central hub where they can handle huge volumes of gold coins, with the minimum staff, consolidated costs and overheads.
These cost savings can be passed onto you for any gold coin or coins you’ve bought, giving you a great deal.
If you’re buying gold coins for their gold content rather than any numismatic value, then you want to focus on buying “bullion coins” which are common coins that have value just because they are made from gold, rather than them being rare.
Also, remember that some gold coins are 22-carat gold, and some are 24-carat (pure) gold, so you’ll need to decide which is better for your purposes.
To work out if your gold coin is 22K or 24K, we have a number of helpful articles that cover all denominations of each coin:
- Gold Sovereigns (including rare years)
- Gold Britannias
- Gold Maples
- Gold Krugerrands
- Gold Pandas
- Gold Eagles
- Gold Buffalos
You can see which coins are 22ct or 24ct in the table below (.9999 fineness is 24ct gold, the others are 22ct):
Gold Coin Specifications & Dimensions
|Years||Coin Type||Weight/Gms||Diameter (mm)||Thickness (mm)||Fineness|
|1987-2012||Britannia Half Ounce||17.05||27.00||2.08||.9167|
|1987-2012||Britannia Quarter Ounce||7.775||22.00||1.63||.9167|
|1987-2012||Britannia Tenth Ounce||3.1103||16.50||1.17||.9167|
|2013+||Britannia Half Ounce||15.60||27||.9999|
|2013+||Britannia Quarter Ounce||7.86||22||.9999|
|2013+||Britannia Tenth Ounce||3.13||16.50||.9999|
|2013+||Britannia Twentieth Ounce||1.58||12||.9999|
|1982+||Maple Leaf 1oz||31.104||30||2.80||.9999|
|1982+||Maple Half Ounce||15.55||25||2.23||.9999|
|1982+||Maple Leaf Quarter Ounce||7.7757||20||1.7||.9999|
|1982+||Maple Leaf Tenth Ounce||3.11||16||1.22||.9999|
|1982+||Maple Leaf Twentieth Ounce||1.555||14.15||0.92||.9999|
|1982-2015||Panda Half Ounce||15.5515||27||1.85||.9999|
|1982-2015||Panda Quarter Ounce||7.7758||21.95||1.53||.9999|
|1982-2015||Panda Tenth Ounce||3.1103||17.95||1.05||.9999|
|1982-2015||Panda Twentieth Ounce||1.5552||13.92||0.83||.9999|
|2016+||Panda 30 grams||30||32||2.70||.9999|
|2016+||Panda 15 grams||15||27||1.85||.9999|
|2016+||Panda 8 grams||8||22||1.53||.9999|
|2016+||Panda 3 grams||3||18||1.05||.9999|
|2016+||Panda 1 gram||1||10||0.83||.9999|
|2006+||Buffalo Half Ounce||15.552||27||2.24||.9999|
|2006+||Buffalo Quarter Ounce||7.776||22||1.83||.9999|
|2006+||Buffalo Tenth Ounce||3.11||16.50||1.19||.9999|
|1967+||Krugerrand Half Ounce||16.96||27.07||2.24||.9167|
|1967+||Krugerrand Quarter Ounce||8.48||22.06||1.52||.9167|
|1967+||Krugerrand Tenth Ounce||3.412||16.55||1.19||.9167|
|1986+||American Eagle 1oz||33.931||32.7||2.87||.9167|
|1986+||American Eagle Half Ounce||16.966||27||2.15||.9167|
|1986+||American Eagle Quarter Ounce||7.775||22||1.78||.9167|
|1986+||American Eagle Tenth Ounce||3.39||16.5||1.26||.9167|
In my opinion, to get the most gold coins possible at the lowest price, you can’t beat a reputable online gold dealer.
If you want to buy gold coinage for the best price take a look at prices on the website of an online gold dealer:
Buy Gold Bars Otley
Gold bars can come from a number of different producers like Metalor, PAMP Suiss, Umicore, Emirates, etc, and can be all kinds of shapes, and weights, from 1 Gram to several Kilograms (a 12.5Kg bar would be worth over Half a Million Pounds).
The smaller bars are usually in a special pack with authenticity holograms, labels, or certificates, but it’s important to realise that a lot of fakes are out there, especially when they are bought on online auction sites.
The way most people would decide if a gold bar is genuine would be to measure it and calculate whether the weight matches what they’d expect, but when it’s in a sealed pack it’s not so easy to measure it or to weigh the gold itself. If you open the pack you’ve lost the authenticity.
It’s highly unlikely that a local gold dealer in Otley will have many, if any gold bars for sale, and if they do you’ll probably pay a premium.
An online dealer has a huge database of people who want to buy gold bars, so they will usually have a reasonable stock of gold bars, and if you want something specific, like a large bar, they’ll know how to obtain it for you.
If you want to buy a gold bar or bars for the best price have a browse on the website of a reputable online gold dealer:
Buying Gold in Otley
So, as you have seen, most dealers, whether a pawn brokers, gold jewellers, or gold dealers, will charge you a larger premium on any gold you buy than online dealers.
You might also find our article “Do Pawn Brokers Pay Well For Gold” useful.
Online gold dealers often have much better prices on gold than local dealers. Recap on why below:
Buying Gold From Online Gold Dealers vs When You Buy Gold in Otley
Why do online gold dealers give you more gold for your money when you buy gold from them than local “near to me in Otley” gold dealers?
- Online gold dealers are set up to handle huge volumes of gold and dealing in gold is their only business.
- They don’t have small shops in small towns, with staff to pay, rates, overheads, costs of holding stock, and all of the other money-absorbing costs.
- They operate from a central location, with minimal staff, and have a very efficient system of buying gold and selling gold, turning it around extremely fast.
To give you an idea, one of the biggest UK online gold buying companies turns over more than £200 million per year – which is a lot of gold!
It’s over £4 million per week.
Because of the quantities of gold people sell to them, they get better rates from the refiners. They also can sell gold in volume to the gold trade.
Your local “near to me” gold dealer on the other hand has premises that cost money to operate, they are probably mainly a jeweller or pawn broker, so selling gold is almost certainly a tiny part of their overall business, and their mark-ups will probably be higher.
For these reasons, online gold sellers will almost always give you a much better deal, over locally buying gold in Otley.
It all comes down to economies of scale, if you want to buy some gold then take a look at local prices and the prices of the online gold dealers:
Is Now A Good Time To Buy Gold?
This is not an easy question to answer. The truth is no one knows, but I’ll do my best to give you an answer.
Only a short while ago gold was trading at $2100 per ounce, it’s since dropped down to about $1800 per ounce (an almost 15% drop in price), and is moving around between $1800 and $1850.
At the moment inflation is going crazy, and the cost of gas, electricity, petrol, food, etc is going through the roof.
At the same time the stock market, gold and silver have been going down.
Some experts think that gold prices are going to go down, but a lot of others think gold prices are going to go up a lot.
Usually in times of economic trouble, like high inflation, gold and silver do very well and go up significantly, so if history is anything to go by, then gold prices should go up.
If you want to buy gold then it might well be a very good idea to buy it now.
Inflation seems certain to go higher, and there are other potential problems ahead, so it seems likely, perhaps, that gold is going to increase in value.
It is impossible to time buying gold for the best possible price, even professionals who do this for a living get it wrong. A good way to approach it is to buy it in stages so that if the price drops then you haven’t bought it all at the top, and you can buy the next batch at the lower price.
This is called Dollar Cost Averaging.
So, the simple answer is if you want to buy gold to hedge against inflation or protect your wealth, then there probably is no better time to do it than now.
Gold might possibly go down, but on the other hand, it could very likely go up.
It’s entirely up to you if you to decide if now is the right time to buy gold.
If you’d like to buy gold, then check out the gold prices on the websites below:
Conclusion Of Buying Gold in Otley
In my opinion, generally speaking, the best option to get the best deal when buying gold is to use a specialist online gold dealer.
We hope that is helpful to you, please take a look at the other useful articles we have on scrapgold.org.uk