This is a really basic question, so thanks in advance for any feedback. I have an older relative who's asked me to help them sell/convert gold coins they've had for at least 20-25 years. Not having owned any gold in the past, I'm not sure of the process. What are the options I have?
- Retail gold exchange stores (ex. Houston Gold Exchange, GoldWiser, etc)?
- Jewelry stores?
- other?

Thanks!

Texas A&M said:

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This is a really basic question, so thanks in advance for any feedback. I have an older relative who's asked me to help them sell/convert gold coins they've had for at least 20-25 years. Not having owned any gold in the past, I'm not sure of the process. What are the options I have?
- Retail gold exchange stores (ex. Houston Gold Exchange, GoldWiser, etc)?
- Jewelry stores?
- other?

Thanks!

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Serious answer - not pulling your leg or trying to be racist. One option is find some Indians who are at least middle class. They all have gold stuffed in their safe deposit boxes. Known enough Indian doctors and others - they freely admit "of course we have gold reserves, we are Indian."

I did this in Houston with a number of 1oz gold coins, Kreugerands and Eagles. I went to several places, mostly along Westheimer. IIRC, prices ranged from 95% on the low end to 97% or 98% of NYMEX on the high end.

My last stop was a place on Westheimer between Seagler and Beltway 8. They offered the highest price, but then gave me the address of their buyer, who paid 100% of NYMEX. They called ahead to tell them I was coming.

Had to go to a sketchy part of downtown to a nondescript place. Knocked on an unmarked door with a camera and was buzzed into the place. Completely messy office with papers everywhere. They took a looked at the coins, took a picture of my DL, filled out a bill of sale form and gave me cash. Easy transaction, but had felt like I needed a pistol with me for the neighborhood and that much cash.

oldarmy1 said:

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FourAggies said:

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I did this in Houston with a number of 1oz gold coins, Kreugerands and Eagles. I went to several places, mostly along Westheimer. IIRC, prices ranged from 95% on the low end to 97% or 98% of NYMEX on the high end.

My last stop was a place on Westheimer between Seagler and Beltway 8. They offered the highest price, but then gave me the address of their buyer, who paid 100% of NYMEX. They called ahead to tell them I was coming.

Had to go to a sketchy part of downtown to a nondescript place. Knocked on an unmarked door with a camera and was buzzed into the place. Completely messy office with papers everywhere. They took a looked at the coins, took a picture of my DL, filled out a bill of sale form and gave me cash. Easy transaction, but had felt like I needed a pistol with me for the neighborhood and that much cash.

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Congrats, you helped launder money.

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Exactly. And all that for the extra 2%. And all his ID and info is in the records of money launderers. Sleep lightly!

Sure the cash wasn't counterfeit? Were they sequentially numbered?

Interesting thought. I guess I was an easy mark. I didn't question it with a referral from a brick and mortar shop. I assume the ID is needed for places like jewelry, coin and pawn shops for the protection of receiving stolen goods. It's been about 8 years, so if it's ID theft, they're playing the long game.
Maybe this was my brush with the underworld.

How does buying gold coin launder money? Do They resell the gold? Is there any auditing on how the gold was acquired?

Call Matt at South Austin Coin Exchange. He's an Ag.

IrishTxAggie said:

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bmks270 said:

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How does buying gold coin launder money? Do They resell the gold? Is there any auditing on how the gold was acquired?

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Buy gold with dirty money. Sell gold for clean money. Gold is harder to track than currency.

Much cheaper than what dirty bankers charge for laundering too.

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Dirty money may also be counterfeit which a dirty banker can't really touch.

IrishTxAggie said:

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bmks270 said:

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How does buying gold coin launder money? Do They resell the gold? Is there any auditing on how the gold was acquired?

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Buy gold with dirty money. Sell gold for clean money. Gold is harder to track than currency.

Much cheaper than what dirty bankers charge for laundering too.

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So there is no tracking of the gold.... and it's as simple as having a receipt for the sale of the gold?

bmks270 said:

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IrishTxAggie said:

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bmks270 said:

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How does buying gold coin launder money? Do They resell the gold? Is there any auditing on how the gold was acquired?

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Buy gold with dirty money. Sell gold for clean money. Gold is harder to track than currency.

Much cheaper than what dirty bankers charge for laundering too.

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So there is no tracking of the gold.... and it's as simple as having a receipt for the sale of the gold?

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No tracking of gold. Like a bearer bond. In your hands, it's yours. The guy wanted the receipt to get the guy's DL and personal information. Either for nefarious reasons or to keep him quiet and not talk about the transaction or he would implicate the guy as an accomplice - keeps him quiet. Old phrase "I know where you live." He may have wanted document sale price.

I might be interested, what is your email?

I was under the impression that gold coins trade at a premium to spot because they are more liquid? If I'm wrong what is the discount rate for a gold bar?

I don't know much about it.

austinaggie2012 said:

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I was under the impression that gold coins trade at a premium to spot because they are more liquid? If I'm wrong what is the discount rate for a gold bar?

I don't know much about it.

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There is a bid-ask spread about spot that transactions occur. Sellers get less than spot. Buyers pay more than spot. Dealers make the difference and the market is efficient.