Selling Gold in Australia: Your Step-by-Step Guide

Gold prices are high right now, and many people are thinking about selling gold to make some extra money. But to get the best price, you need to know what you’re doing. In Australia, gold prices change often, and many things can affect how much your gold is worth. This guide will show you a simple step-by-step process to sell your gold smartly and safely.

1. Assess Your Gold Items and Their Value

Before selling gold, it’s important to understand what you have and how much it’s worth. Gold prices go up and down, so knowing your gold’s value is the first step.

Identifying Gold Items

Gold can come in many forms. Here are the most common ones:

• Jewelry – rings, chains, bracelets, earrings.

• Coins – gold coins, collector coins.

• Bars – small or large gold bars.

• Scrap gold – broken jewelry or unused pieces.

To know if your item is real gold, look for a hallmark. Common gold hallmarks include:

• 999 or 24K – pure gold (99.9%).

• 22K – 91.6% gold.

• 18K – 75% gold.

• 14K – 58.5% gold.

If you’re not sure, gold can be tested using:

• Acid test – uses special liquid to check purity.

• Electronic gold tester – a device that measures gold content.

Determining Gold Purity and Weight

Gold is measured in carats (K). The higher the number, the purer the gold. Here’s a simple chart:

You also need to weigh your gold in grams or ounces. A small kitchen scale can help, but buyers will usually weigh it again.

Estimating the Current Market Value

To know what your gold is worth, check the current gold price, also called the spot price. You can find it online on websites like:

• ABC Bullion

• GoldPrice.org

Then, use this formula:

Value = Weight × Purity × Spot Price

Example: If you have 10 grams of 18K gold and the spot price is $100 per gram:

10g × 0.75 (75% purity) × $100 = $750

2. Research Gold Buyers in Australia

Finding the right gold buyer is very important. A good buyer gives you a fair price and a smooth experience.

Types of Gold Buyers

Here are the common places to sell your gold:

• Gold dealers – Specialists who buy and sell gold.

• Pawn shops – Offer loans or buy gold directly.

• Jewelry stores – Some buy second-hand jewelry.

• Online gold buyers – Send your gold by mail.

• Refineries and mints – Buy large amounts or high-purity gold.

Checking Reputation and Credentials

Not all buyers are the same. To stay safe, always:

• Check if they are certified or members of groups like the Gold Buying Association.

• Read reviews online.

• Avoid buyers with bad feedback or unclear prices.

Comparing Quotes from Multiple Buyers

Don’t sell your gold to the first buyer. Get at least 3 quotes. When comparing offers:

• Look at the price per gram.

• Check for any fees or commissions.

• Ask how and when you’ll be paid.

Case Study: You ask three buyers for a quote for 10g of 18K gold.

• Buyer A: $700, no fees.

• Buyer B: $750, but charges $30 fee.

• Buyer C: $730, payment next day.

Best deal? Buyer A gives you $700 with no delay or fees.

3. Prepare Your Gold for Sale

Getting your gold ready helps you sell it faster and get a fair price.

Cleaning and Organizing Your Gold

Clean your gold gently using warm water and mild soap. Do not use strong chemicals. Then:

• Group items by carat (purity).

• Note the weight and value of each item.

Keep a record of everything.

Gathering Documentation and Proof of Ownership

Some buyers may ask for documents. Here’s what to bring:

• Purchase receipts or invoices.

• Appraisal reports.

• Certificates of authenticity (if any).

• Photo ID – like a driver’s license or passport.

Understanding Gold Selling Contracts and Agreements

Some buyers use contracts. These should include:

• Price offered.

• Payment method and timing.

• Return policy if gold is not accepted.

Tip: Read everything before signing. Ask questions or get legal help if unsure.

4. Selling Your Gold and Receiving Payment

You’re now ready to turn gold into cash.

Visiting a Gold Buyer or Sending Gold via Mail

If visiting a gold shop:

• Make an appointment.

• Bring your documents.

• Be ready to negotiate.

If mailing gold:

• Use insured and tracked shipping.

• Take photos or videos of the items and the package.

Negotiating the Final Price

You don’t have to accept the first offer. Say you’ve got other quotes. This gives you power to ask for more.

Example: The buyer offers $720. You say, “Another place offered $750.” They may increase their offer.

Be polite, but firm. If the offer is too low, walk away.

Receiving Payment and Completing the Transaction

Payment options include:

• Cash

• Bank transfer

• Cheque

Before leaving, make sure:

• The payment matches the agreed price.

• You get a receipt or proof of sale.

5. Understanding Tax Implications

When selling gold, you may need to report it for tax reasons in Australia.

Reporting Capital Gains or Losses

If you bought gold as an investment and now sell it for more, you might pay capital gains tax (CGT).

• Keep records of your buy and sell prices.

• You may have to report profits on your tax return.

• If unsure, talk to a tax advisor.

Deductible Expenses

Some selling costs may be deducted from your tax:

• Shipping and insurance

• Appraisal or valuation fees

• Professional advice (legal or financial)

Keep receipts to claim these costs.

Record Keeping

It’s important to keep all your gold selling records for tax and legal purposes:

• Receipts

• Contracts

• Emails or messages

• Valuation documents

Keep them for at least 5 years.

Conclusion

Selling gold in Australia doesn’t have to be hard. If you follow these steps, you can sell your gold with confidence:

1. Know your gold’s value by checking purity and market price.

2. Find a trusted buyer and get multiple quotes.

3. Prepare your gold and documents before selling.

4. Negotiate and confirm payment before finalizing the sale.

5. Understand your tax responsibilities and keep good records.

With a little research and planning, selling gold can be a simple and safe way to earn money.