The Secondary Gold Market: A Guide to Buying Pre-Owned Gold for Investment
Author: Connor Campbell - Bullion & Economics Editor
Published: 28 Mar 2023
Last Updated: 29 Mar 2023
Synopsis
Investing in pre-owned gold bullion bars or coins is a cost-effective option for affluent individuals. The secondary gold market determines the price of pre-owned gold items. It is important to purchase pre-owned gold from a trustworthy source, such as Chards Coin and Bullion Dealer, who offer high-quality and authentic gold bars at a discounted premium.
Key Takeaways
- Pre-owned gold bullion can be a cost-effective investment option, allowing investors to purchase gold at a lower premium closer to the spot price.
- The secondary gold market refers to the buying and selling of pre-owned gold items, which are influenced by various factors such as supply and demand and desirability.
- When purchasing pre-owned gold bullion bars, it is essential to ensure their authenticity and quality. LBMA-approved refineries provide high-quality gold bars that have been tested for purity and weight.
- Chards Coin and Bullion Dealer is a reliable and reputable source for pre-owned gold bullion. We have been operating since 1964 and offer a wide selection of high-quality gold bullion from well-known refineries at a discounted premium compared to brand new bullion.
Investing in Pre-Owned Gold Bullion
Investing in gold has always been a popular choice for affluent individuals looking to diversify their portfolio and protect their wealth. However, purchasing new bullion can be an expensive investment, and the associated premiums may deter some investors from entering the market. This is where the option of buying pre-owned gold bullion bars or coins comes in. Not only can it be more cost-effective, but it also allows investors to purchase gold at a lower premium closer to the spot price.
The Secondary Gold Market
Before delving into the specifics of pre-owned gold bullion, it is important to understand the secondary gold market. The gold market refers to the international commodities trading that determines the gold spot price, which affects the price of all items made from or containing gold. The secondary gold market refers to the buying and selling of pre-owned gold items.
The price of gold on the secondary market is still determined by the gold spot price, but it is also influenced by many other factors. Supply and demand, as well as the desirability of the item, can add to the gold value or take away from it. This means that purchasing an item on the secondary gold market would generally entail a lower price than if the item was new, particularly if the item is purely for investment purposes, such as a gold bar.
1 oz Krugerrand Gold Coin Best Value - Secondary Market
These are our lowest priced gold 1 oz South African Krugerrand coins.
| Qty | Chards (Excl Delivery) | Chards (Inc Delivery) | B* | G* | A | BB | TB |
|---|---|---|---|---|---|---|---|
| 1 | £1,886.90 | £1,893.90 | £1,938.00 | £1,977.00 | £1,914.50 | £1,910.48 | £1,895.92 |
| 5 | £1,886.90 | £1,889.30 | £1,931.00 | £1,966.00 | £1,910.26 | £1,910.48 | £1,895.92 |
| 10 | £1,886.90 | £1,888.70 | £1,927.00 | £1,960.00 | £1,909.28 | £1,910.48 | £1,895.92 |
| 25 | £1,886.90 | £1,888.38 | £1,923.00 | £1,956.00 | £1,908.07 | £1,910.48 | £1,895.92 |
| 50 | £1,886.90 | £1,888.36 | £1,921.00 | £1,954.00 | £1,907.88 | £1,910.48 | £1,895.92 |
| 100 | £1,886.90 | £1,888.42 | £1,918.00 | £1,953.00 | £1,907.88 | £1,910.48 | £1,895.92 |
| 200 | £1,886.90 | £1,888.29 | £1,918.00 | £1,953.00 | £1,907.88 | £1,910.48 | £1,895.92 |
| 500 | £1,886.90 | £1,888.24 | £1,914.00 | £1,947.00 | £1,907.88 | £1,910.48 | £1,895.92 |
Updated At: 28-Apr-2024 07:30
1 oz Krugerrand Gold Coin Best Value - Secondary Market
Our Best Value 1oz Secondary Market Gold Coins are our cheapest one ounce coins. These coins have very low premiums, making them perfect for investors.
| Qty | Chards (Excl Delivery) | Chards (Inc Delivery) | B* | G* |
|---|---|---|---|---|
| 1 | £1,910.10 | £1,917.10 | £1,928.00 | £1,977.00 |
| 5 | £1,909.17 | £1,911.57 | £1,921.00 | £1,966.00 |
| 10 | £1,908.23 | £1,910.03 | £1,917.00 | £1,960.00 |
| 25 | £1,907.29 | £1,908.77 | £1,913.00 | £1,956.00 |
| 50 | £1,906.36 | £1,907.84 | £1,913.00 | £1,954.00 |
| 100 | £1,905.42 | £1,906.96 | £1,913.00 | £1,953.00 |
| 200 | £1,904.49 | £1,905.89 | £1,913.00 | £1,953.00 |
| 500 | £1,903.55 | £1,904.90 | £1,913.00 | £1,947.00 |
Updated At: 28-Apr-2024 13:00
Types of Second-Hand Gold
There is a vast array of second-hand gold items available for discerning investors to consider. A pure investor may want to consider second-hand gold bars or coins, gaining all the investment benefits of a new item, but at a lower price. Other investors may look at second-hand gold jewellery or other scrap items that can then be resold.
Gold scrap jewellery refers to any broken or unwanted gold jewellery that still contains gold. Anything made from or containing gold will have a value equal to the current market value of the gold. Collecting these items and finding a buyer could prove fairly time-consuming, however, and usually has very tight margins, requiring large volumes to be viable. For most individuals, the best second-hand gold to purchase is a bar or coin.
Benefits of Buying Pre-Owned Gold Bars
When it comes to buying pre-owned gold, bars are generally the best choice for investment purposes. This is because the shape and form of the gold have little consequence - an ounce of gold is the same to all. Despite this, brand new gold bars, purchased through a dealer direct from refineries, are typically more expensive than pre-owned bars.
This is where Chards Coin and Bullion Dealer comes in. As a reputable dealer of pre-owned gold bullion bars, we offer a discounted premium compared to brand new bullion, as an incentive for customers who can sometimes be wary of buying pre-owned gold. These items are as valuable as their new counterparts, still contain the same amount of gold, and will be worth the same upon resale.
Quality and Authenticity of Pre-Owned Gold Bullion
At Chards Coin and Bullion Dealer, we have strict inspection requirements for all gold and silver coins and bars, ensuring that all of their products are of the correct purity, weight, and acceptable condition. We use a range of testing methods to guarantee the authenticity of the gold, such as X-ray fluorescence (XRF) analysis.
XRF analysis is a non-destructive testing method that determines the purity of the gold by measuring the radiation emitted by the gold. This method is highly accurate and can detect even small traces of other metals in the gold.
Chards Coin and Bullion Dealer ensures that all pre-owned gold bars are from LBMA-approved refineries. The LBMA, or London Bullion Market Association, is an international trade association that sets standards for the precious metals industry. LBMA-approved refineries must adhere to strict standards for quality and ethics, ensuring that the gold bars produced are of the highest quality.
Size and Liquidity of Pre-Owned Gold Bars
Chards Coin and Bullion Dealer stocks a wide selection of pre-owned gold bullion bars from LBMA-approved refineries. Chards offer a variety of sizes, from one gram to one kilogram, to suit the investment needs of different individuals.
The size of the gold bar also plays a role in the premium associated with purchasing it. Larger bars may come with a lower premium, but they may be less liquid and harder to sell quickly in the event of an emergency. Smaller bars, on the other hand, may have a higher premium but offer greater liquidity.
Trustworthy Source for Pre-Owned Gold Bullion
Chards Coin and Bullion Dealer is a trusted source for pre-owned gold bullion bars. They have been operating since 1964 and have built a reputation for being reliable and transparent in their dealings with customers. They provide a comprehensive range of bullion products, including gold, silver, platinum, and palladium, as well as numismatic coins.
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