What to check before buying or selling physical gold

The questions that matter when buying or selling gold are refreshingly concrete: what exactly is this item, how pure is it, how is that verified, and how is today's price set? Everything else — predictions, promises, stories about where the price is heading — is noise you can safely ignore.

Focus on the product

Ask about purity and verification, and keep your receipt. Physical metal is a product, not a guaranteed investment. Purity is expressed in karats or fineness — 24k / .999 for most bullion products — and it should be stamped on the item and stated on your paperwork. Recognized products such as Royal Canadian Mint maple leaf coins carry security features that make verification straightforward; unfamiliar bars and inherited jewellery need closer testing.

Buying or selling gold: how pricing works

Gold trades globally at a spot price that moves through the day. What you pay when buying sits above spot by a premium (fabrication, distribution, the dealer's margin); what you receive when selling sits somewhat below it. Those two gaps are the honest cost of dealing in physical metal — the same buy/sell logic as currency, explained in how buy and sell rates work. Comparing a quote against the day's spot price tells you immediately whether it is fair.

Paperwork and safe handling

Get a receipt describing the item precisely: weight, purity, product name, price, and date. It matters for insurance, for resale, and for any later question about the transaction. For larger transactions, identification requirements apply to buying or selling gold just as with currency. Details are on our gold and bullion service page.

Before you decide

• How to use this guide: this is general information — match it to the specific item and amount, then confirm details with the branch.
• Details worth checking: compare any quote against the day's spot price, and confirm purity and verification for the exact item.
• Keep a record: keep a detailed receipt for every purchase or sale; for next steps, contact the Newmarket branch.