Most private sellers give up profit through poor venue choice, vague pricing, and avoidable tax mistakes.
Qualifying investment gold in the UK is exempt from VAT, as set out in HMRC VAT Notices 701/21 and 701/21A. UK legal-tender gold coins such as Britannias and post-1837 Sovereigns count as sterling currency and can be exempt from Capital Gains Tax under TCGA 1992 s.21(1)(b).
Know What You Own Before Requesting Quotes
If you know exactly what you hold, buyers can quote you tighter and more confident bids.
Creating Your Inventory
For bars, record the weight, fineness, refiner or mint, serial numbers, and any assay cards. Photograph everything in clear, even lighting. For coins, group them by type and year, and separate modern bullion from proof or collectable pieces that might carry a numismatic premium.
Keep original invoices, vault statements, and any provenance notes. Strong documentation avoids delays and extra testing costs.
Understanding Bar Categories
LBMA Good Delivery bars are typically around 400 troy ounces, with a minimum fineness of 995. Required marks include a serial number, refiner stamp, fineness, and year. Retail bars, such as 1 kg or 100 g pieces, can still command tight spreads, but they are not treated as Good Delivery bars in wholesale clearing.
Coins and Their Tax Profile
UK legal-tender coins such as post-1837 Sovereigns and Britannias are generally CGT exempt because they are classed as sterling currency. Foreign bullion coins trade close to melt value, while meaningful numismatic premiums belong in specialist auctions.
UK Tax and Compliance Planning
Understanding your tax position before you sell prevents costly surprises.
VAT-exempt status applies to qualifying items that meet HMRC criteria in VAT Notices 701/21 and 701/21A.
CGT Considerations
CGT does not usually apply to UK legal-tender gold coins because of their currency status. For bars and most foreign coins, track your cost basis, dates, and quantities. Speak with a tax adviser if pooled calculations apply to your situation.
AML Readiness
High Value Dealer rules trigger at cash payments of at least 10,000 euros. Expect ID verification and proof of address. Prefer bank transfer to reduce AML friction and speed up payment.
Choose the Right Venue for Your Lot
Different venues suit different lot types, so matching them carefully helps you avoid leaving money on the table.
In-Person London Buyers
Walk-in buyers offer speed, on-the-spot testing, and same-day settlement. This route works well for mixed or urgent lots where face-to-face comfort matters. Always request a quote that is referenced to a clear benchmark and get settlement terms in writing. If you want an in-person appraisal and fast settlement in central London, consider Suttons and Robertsons; see their Best London Gold Buyers page for the current process and contact details.
Online Dealers and Postal Sales
Online dealers offer competitive quotes at scale, with transparent pricing grids. The trade-off is shipping risk and potential assay holds before payment. Use insured post, photograph the packaging, and confirm cut-off times for pricing locks.
The Royal Mint Buyback
The Royal Mint indicates examples such as around 96 percent of the LBMA gold price for mailed-in bullion and around 98 percent when you sell directly from The Vault. These figures illustrate typical buy-back discounts to the benchmark.
ETFs and Exchange-Traded Products
For products like SPDR Gold Shares, ordinary investors sell shares on the exchange during market hours. Only Authorised Participants can redeem shares for physical metal. Use limit orders during the most liquid hours.
Time Your Sale Around Liquidity
You usually get the tightest spreads when you sell around the main LBMA benchmark auctions.
The LBMA Gold Price is set via electronic auctions at about 10:30 and 15:00 London time each business day, so ask buyers to peg your deal to the AM or PM auction result.
For larger sales, quote just before the PM auction, when London overlaps with New York, and give clear instructions to price at the published benchmark.
Price the Spread Clearly
Understanding how dealers quote prices makes it much easier to compare offers fairly. Spot is the current market level, while the LBMA Gold Price is a published benchmark. Dealers buy at a discount to those levels, depending on lot size, product type, and their risk.
Gather three firm quotes within a one-hour window so you can compare the same market conditions. Ask for AM or PM pegging and confirm any assay or melting fees in writing.
Verification Without Value Loss
Choose non-destructive verification first, so you preserve resale value.
XRF and electromagnetic testing can confirm fineness without damaging bars or coins. Maintain intact packaging for small bars where possible.
Destructive assay should apply only when clear red flags arise, such as altered bars or mismatched documentation. Clarify who bears assay costs before shipping.
Shipping and Settlement
Secure shipping and clean payment processes protect more value than squeezing a tiny bit extra from the price. For smaller consignments, Royal Mail Special Delivery provides tracked, next-day delivery with compensation up to 2,500 pounds. For higher values, split parcels or use an insured courier. Photograph contents and seals before sending.
Prefer bank transfers over cash. Confirm the account details and payment reference text for clean reconciliation. Request a contract note that references the benchmark price.
Common Mistakes That Cost Money
Avoid these common errors that quietly erode your proceeds:
- Selling during quiet hours widens the spreads
- Accepting quotes without benchmark references
- Mixing numismatic coins with bullion melt lots
- Posting without appropriate insurance
Quick Checklist Before Requesting Quotes
Prepare your documents, photos, certificates, and invoices so your sale runs smoothly.
Have photo ID, proof of address, and bank details ready.
Decide whether you want AM or PM benchmark pegging, and request quotes from at least three reputable dealers within a tight window.
Conclusion
Treat your sale like a professional trade. Control what you sell by documenting form, purity, and provenance. Control where you sell by matching venue to lot type. Control when you sell by aligning with LBMA benchmarks during liquid windows.
Build your pre-sale pack, gather three benchmark-pegged quotes, and choose the venue that balances price, speed, and convenience for your specific lot.
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