Selling physical precious metals: these are the options
Whether you want to take profits, restructure your portfolio or simply need liquidity: the moment you sell your gold, silver or platinum deserves just as much attention as the purchase of precious metals.
On this page, you can read about the reasons for selling precious metals and what you should pay attention to when selling in order to avoid unpleasant surprises.
Why sell precious metals?
Selling precious metals is often not a decision you want to make under pressure. Especially when prices are temporarily under pressure and uncertainty is increasing, it is important that the sale fits within a pre-planned asset plan and is not the result of unrest or the feeling that things are 'getting too hot'.
Reasons for selling precious metals include:
- Realising profits after a sharp rise in prices
- Rebalancing
- Temporary need for liquidity, for example for another investment
- Investment goal has been achieved
How does selling precious metals work at GoldRepublic?
When you hold precious metals through GoldRepublic, the selling process is simple, transparent and completely digital.
Step 1: You place a sell order
Via your personal account, you indicate which precious metal (gold, silver or platinum) and what weight you want to sell. You will immediately see the current selling price, based on the live market rate.
Step 2: Immediate price, no negotiation
GoldRepublic uses clear spreads with no hidden costs. You do not need to negotiate or request quotes. This prevents uncertainty and wasted time.
Step 3: Settlement and payment
After the sale has been completed, the amount is usually credited to your linked bank account within one working day. Your precious metal is administratively debited from the vault.
Because your precious metal is already stored in an independent, externally managed vault, physical transfer is not necessary. This makes the process faster, safer and cheaper.
Selling precious metals outside GoldRepublic
Have you purchased precious metals from another provider or have you stored them yourself? Then you are responsible for the sale.
This usually involves uncertainty about quality. If precious metals cannot be proven to have been stored directly from the smelter and have not been under continuous external control, there is uncertainty about the purity, origin and condition of the metal. This uncertainty almost always works to the disadvantage of the seller.
In physical sales, valuation is often based on visual inspection and random sampling. The final price therefore depends on the buyer's interpretation, which can lead to varying outcomes and less transparency.
In addition, you are responsible for transport and insurance, which not only makes the process more cumbersome, but also entails additional risks.
Investors who value certainty, speed and control therefore often opt to sell from a professional vault environment, as is standard practice at GoldRepublic.
What should you pay attention to when selling precious metals?
Selling gold, silver or platinum: are there any differences?
Yes, there are clear differences between selling different precious metals.
● Selling gold: Gold is known as the most liquid precious metal in the world. The market is large, transparent and active. This means you can almost always sell gold quickly at competitive prices. At GoldRepublic, you can always sell your gold back to us, regardless of market conditions.
● Selling silver: There is also (much) industrial demand for silver. This precious metal also tends to experience greater price fluctuations than gold. Silver that has been physically delivered in the United Kingdom may be less flexible to sell than silver stored in a foreign vault. Silver that has been physically delivered in the United Kingdom is subject to 20% VAT upon purchase (the standard UK VAT rate following Brexit). This VAT has been paid and is not recoverable by private investors. Upon sale, the buyer must effectively 'recoup' this VAT in their pricing.
● Selling platinum: Platinum is generally the most volatile of these three precious metals. It is scarcer and more sensitive to economic conditions. In addition, the platinum market is smaller than those for gold and silver, which can lead to greater price fluctuations and spreads. This requires a longer investment horizon and timing. VAT at 20% is also levied on platinum upon physical delivery in the United Kingdom. This does not apply to platinum that you store in vaults in, for example, Frankfurt or Zurich.
Selling precious metals and tax
In the United Kingdom, precious metals are not subject to a wealth tax. When metals are sold, Capital Gains Tax (CGT) may apply. Importantly, investment gold is exempt from CGT under HMRC rules. Silver and platinum do not benefit from this exemption and gains from their sale are generally subject to CGT, depending on the individual's annual exempt amount and personal tax situation.
Tax regulations may change and depend on personal circumstances. If unsure, professional tax advice is recommended.
Why sell through GoldRepublic?
For many investors, it is not only important that they can sell, but above all how.
GoldRepublic offers:
- A buy-back guarantee on all precious metals purchased through GoldRepublic
- The first party in the Netherlands to obtain an AFM licence for physical precious metals
- More than £1.3 billion in precious metals in storage
- Storage in independent, externally managed vaults
- Fully transparent prices and spreads
- Fast and reliable payouts
Conclusion
Want to sell precious metals? Read how selling gold, silver and platinum works and what you need to bear in mind.
Rika Zaat is host of MacroCheck at GoldRepublic, where she translates macro-economic topics into clear and accessible videos. She is also responsible for marketing, productions and events, including large live evenings with speakers such as Willem Middelkoop and Peter Schiff. Rika graduated cum laude from Nyenrode Business University with an MSc in Financial Management (GPA 8.2).
