Home National Stories Selling Gold and Silver – Eight Questions for Investors to Consider from...

Selling Gold and Silver – Eight Questions for Investors to Consider from ABC Refinery and ABC Bullion

ABC Refinery ATO

According to ABC Bullion, precious metal prices have been on a major bull run for the last two decades, with gold in particular rising from less than AUD $500 to more than AUD $3,000 per troy ounce (oz) in late 2023.

This price surge, and the economic factors driving it, has seen an explosion in demand for physical gold and silver, with tens of thousands of Australians now sitting on substantial profits due to their astute purchasing in the past.

While demand for precious metals continues to grow, it’s understandable some investors are looking to reduce their holdings.

Clients of ABC Refinery products sold as ABC Bullion who are selling have typically been doing one of four things with their proceeds:

  • Funding a house deposit
  • Reducing debt – such as paying down or eliminating their mortgage
  • Paying unplanned bills and expenses, or assisting a family member
  • Enjoyment – with some using it to fund holidays.

Given the growing number of Australians that will likely need or want to sell some of their precious metals in the years ahead, ABC Refinery looks at eight key questions we believe they should ask when choosing who to sell their holdings to – and when.

How long have they been in operation?

Longevity is an important characteristic in any industry, including precious metals. The longer in operation, the more certainty you have they will engage honestly when buying back your precious metals.

What are their accreditations?

A well-established company should have international industry accreditations, such as membership to the LBMA (London Bullion Market Association – considered the de facto global authority for precious metals), the SGE (Shanghai Gold Exchange – the major exchange known for having most stringent tolerances for impurities) and CME Group (global leaders in precious metals derivatives). Such accreditations ensure the business is operating to the highest international standards.

Where are they located?

To sell physical metal(s), you will likely need to take them to a buyer. It helps if that buyer is in an easy-to-get-to location, such as a CBD. Ideally, they will have offices in multiple locations across the country.

Which products will they buyback?

While many websites advertise they ‘buy gold’, it is important to understand what that means in detail. Is it all investment-grade products, or only select manufacturers or product types (e.g. coins)?

Do they publish their prices?

A company’s website either will or will not show the prices they buy and sell precious metals for. If they do, you will know how much to expect should you sell to them.

How much metal can they buyback?

This one is harder to ascertain from a web search. It’s easy to say ‘we buy back gold at spot’ as some companies do, but how much? One ounce of gold (worth almost $3,000 at today’s prices)? One hundred ounces ($300,000)? Up to a thousand ounces ($3,000,000)? More?

You want to be confident whoever you’re selling to can buy all of it back at their quoted prices.

How swiftly will funds be paid?

Some companies need to find a buyer for your precious metals before they can pay you. That could bring delays, risks and uncertainties – all of which are avoided if you deal with a larger business that has the reputation and liquidity to buy your metal back and pay you directly, without needing to wait for a buyer.

What are the tax implications?

Regardless of who you’re selling to, the Australian Taxation Office (ATO) has rules regarding the buying and selling of gold bullion, coins and jewelry:

Goods and Services Tax (GST) is not payable on the buying or selling of investment grade bullion. However GST is payable on non-bullion coins and jewelry.

When selling gold, Capital Gains Tax (CGT) of up to 28% is payable if you make a profit. However, if you’ve held that gold for more than a year, only 50% of that profit is taxable. Knowing this could impact when you decide to sell.

Note the ATO has serious penalties for anyone making false declarations or otherwise behaving fraudulently with respect to the purchase or sale of precious metals investments, whether it be GST or CGT related.

ABC Refinery ATO

How ABC Bullion help investors selling gold and other precious metals

Founded in 1972, ABC Bullion have been in operation for over 50 years.

They are a fully-owned subsidiary of Pallion Group, Australasia’s largest privately owned precious metal services group, with a history dating back to 1951 and annual turnover of more than AUD $10bn. Turnover of that size means they have the capacity to sell and buyback vast quantities of precious metals every day.

ABC Bullion gold is produced exclusively by sister company ABC Refinery. Both businesses are accredited by the London Bullion Market Association (LBMA), the Shanghai Gold Exchange (SGE) and the CME Group.

With offices locations in the Brisbane, Melbourne and Perth CBDs, as well as a Global Flagship Store at 38 Martin Place in the heart of Sydney, they also provide more choice to Australians looking to sell their gold and silver than any other bullion dealer in Australia.

ABC Bullion publishes its buy and sell prices for products on its website, with prices updated every five minutes.

They buyback investment grade gold, silver and platinum products, irrespective of their year of manufacture, and will make payment to a nominated bank account within 2 days of purchasing precious metals.