Gold & Silver 101

Section 5

What Drove Gold to $5,600? The 2024–2026 Bull Market

The gold bull market of 2024–2026 was not a repeat of previous cycles. It wasn’t driven primarily by retail investors panicking, negative real yields turning extremely negative, or a single geopolitical shock. It was driven by a structural shift in who buys gold and why — and understanding that shift matters for the road ahead.

Driver 1: Central banks broke the historical buying record

From 1990 to 2010, central banks were net sellers of gold. European central banks in particular were unloading reserves, driving gold lower and prompting the Central Bank Gold Agreement of 1999 to manage the selling. The post-2010 shift to net buying was gradual. The post-2022 surge was not gradual at all.

Central banks bought 1,136 tonnes in 2022, 1,051 tonnes in 2023, and 1,037 tonnes in 2024 — three consecutive years above 1,000 tonnes, a record pace. The buyers were mostly emerging market central banks: China, Poland, Turkey, India, and dozens of smaller buyers diversifying reserves away from US Treasury bonds and euros. The motivation was partly de-dollarization, partly the observation that Russia’s foreign currency reserves (held in Western systems) were frozen in 2022 following its invasion of Ukraine. That event was a lesson for every central bank outside the G7 sphere: if your reserves are in someone else’s system, they can be confiscated. Gold, held in your own vault, cannot be.

Driver 2: US fiscal deterioration changed the long-run calculus

US federal debt as a percentage of GDP crossed 100% after COVID and has continued climbing, now above 120%. The Congressional Budget Office projects the debt continuing to grow faster than GDP for the foreseeable future. In the first half of fiscal 2026 alone, the US paid $529 billion in interest — nearly $88 billion per month. That’s more than the entire defense budget for many countries.

This matters for gold because the implicit logic of long-term dollar strength depends on fiscal credibility. When debt loads become this large, the incentive to inflate away the real value of debt becomes overwhelming. Whether or not the Fed actually chooses that path, the risk that it might — or be forced to — is priced into gold.

Driver 3: Western investors came back

From 2021 through most of 2024, Western gold ETF holdings were falling. North American and European funds were seeing outflows as high real interest rates made bonds attractive again. But in late 2024, those flows reversed. The World Gold Council data shows US gold demand more than doubled in 2025 to 679 tonnes, driven almost entirely by a surge in ETF buying. North American ETFs added 437 tonnes of gold during the year — bringing total US ETF gold holdings to a record 2,019 tonnes, with AUM exceeding $280 billion.

That combination — persistent emerging market central bank buying plus a return of Western investment demand — is historically the most powerful setup for gold. Both buyer groups were active simultaneously in 2025 for the first time since the early 2010s bull market.

Where does it go from here?

The honest answer: nobody knows. Analysts have a spectacularly poor record of forecasting gold over any short or medium time horizon. Goldman Sachs and J.P. Morgan both projected prices averaging $5,055/oz by Q4 2026 as of year-end 2025 — targets that were exceeded and then given back in the January spike and subsequent pullback. MKS PAMP analyst Nicky Shiels projected $5,400 by end of 2026. The World Gold Council’s scenario analysis shows a range of continued modest gains to significant upside depending on rate cut timing, geopolitical escalation, and the trajectory of the dollar.

The structural forces that drove the 2024–2026 run haven’t gone away. Central banks haven’t stopped buying. US fiscal conditions aren’t improving. The Strait of Hormuz disruption that spiked energy and inflation in early 2026 is paused, not resolved. Whether gold returns to $5,600 or consolidates around $4,500–5,000 for an extended period is genuinely unknowable. The case for owning some remains intact regardless.

Section 6

Gold IRA: The US Tax-Advantaged Route

A gold IRA is a self-directed IRA (SDIRA) that holds physical precious metals rather than stocks, bonds, or mutual funds. It has the same tax structure as a conventional IRA — but it comes with specific IRS requirements and meaningfully higher costs that you need to understand before deciding whether it makes sense.

How a gold IRA actually works

Three parties are always involved. First, a custodian — an IRS-approved institution that administers the account, handles paperwork, and ensures compliance. Regular brokerages like Fidelity or Vanguard do not offer physical gold IRAs; you need a specialized self-directed IRA custodian. Common ones include Equity Trust Company, GoldStar Trust, STRATA Trust, and Kingdom Trust. Second, a precious metals dealer — you select which metals to buy, the custodian processes the payment, and the metals ship directly from the dealer to the depository. The metals never pass through your hands. Third, an IRS-approved depository — where the metals are stored on your behalf. Delaware Depository, Brink’s Global Services, and International Depository Services (IDS) are widely used.

IRS purity rules — what metals qualify

The IRS is specific about what gold can be held in an IRA. Gold must be at least .995 fine (99.5% pure). Bars must come from accredited refiners or national government mints. The most important exception: American Gold Eagles are IRA-eligible despite being only 91.67% gold (22K), because Congress wrote them into the tax code as a specific exception under IRC 408(m)(3). No other coin below .995 receives that treatment — not Krugerrands, not older British sovereigns.

IRA-eligible gold coins include: American Gold Eagle (bullion and proof), American Gold Buffalo (.9999), Canadian Gold Maple Leaf (.9999), Austrian Gold Philharmonic (.9999), and Australian Gold Kangaroo (.9999). Gold bars from LBMA Good Delivery-approved refiners (PAMP Suisse, Valcambi, Perth Mint, others) qualify at .999 or better. Numismatic coins and certified graded coins do not qualify regardless of gold content — the IRS treats them as collectibles.

The real costs of a gold IRA

This is where gold IRAs diverge sharply from conventional IRAs. Expect to pay:

• Account setup fee: $50–$150 one-time
• Annual custodian fee: $75–$300/year
• Annual storage fee: $100–$300 for non-segregated (commingled); $150–$500 for segregated (your specific bars stored separately)
• Transaction fee: $15–$50 per buy or sell
• Dealer premium: 3–8% above spot when buying coins or bars

Combined annual fees (custodian + storage) of $225–$800 represent 1–2% of assets for a $50,000 account. That’s 4–8× more expensive than a low-cost ETF like IAU at 0.25%. The breakeven analysis is important: at 1.5% annual fees, gold must appreciate at least 1.5% per year just to match a free investment vehicle. Over 20 years at a 1.5% fee drag, you lose roughly 26% of your ending balance to fees alone, compared to holding IAU.

Who a gold IRA makes sense for

The fee math is most favorable for larger accounts and investors with strong convictions about gold’s long-run appreciation. Specifically, a gold IRA earns its keep for: investors rolling over a substantial 401(k) balance into retirement who want tangible gold exposure within the tax shelter; investors who have maxed out conventional IRAs and want additional pre-tax retirement savings in metals; investors who place high value on physical gold ownership (vs. paper claims) and want to integrate that into their retirement plan.

For most investors who simply want gold price exposure in a brokerage account, buying IAU or GLD is cheaper, simpler, and requires no specialized custodian. A gold IRA is specifically for situations where the tax-advantaged structure provides enough value to justify the added cost and complexity.

Funding a gold IRA

There are three ways to fund a gold IRA. A direct transfer from one IRA custodian to another has no time limits and no tax consequences. A rollover from a 401(k) must be completed within 60 days of receiving the distribution or it becomes taxable. An annual contribution (up to the IRA contribution limit, currently $7,000/year or $8,000 if 50+) follows standard IRA rules. You cannot transfer gold you already personally own into an IRA — even if that gold meets all IRS requirements. All metals must be purchased through the custodian and shipped directly to the depository.

Required minimum distributions (RMDs)

Traditional gold IRAs are subject to required minimum distributions starting at age 73, just like conventional traditional IRAs. You can take RMDs as physical metal (the custodian ships specific coins or bars to you and you pay income tax on the fair market value) or cash (the custodian sells metal and transfers the proceeds). Roth gold IRAs are not subject to RMDs for the original account owner.

Section 7

How to Read the Market Data

Our Data page aggregates 42 data sources in one place. Here’s how to interpret the most important signals.

COMEX warehouse inventory

COMEX (Commodity Exchange) is the primary US futures exchange for gold and silver. It maintains approved warehouses across the US where physical metal is stored to back futures contracts. Every business day, CME Group publishes a breakdown of this inventory in two categories: registered (metal that has been assigned a warrant and is immediately deliverable against a futures contract) and eligible (metal stored in the warehouse that meets delivery standards but hasn’t been registered yet).

Registered inventory matters most. When it falls sharply, it indicates that physical demand is tightening — fewer ounces are available to satisfy potential futures delivery demand. When it rises, conditions are comfortable. In early 2026, COMEX gold registered inventory surged from roughly 8 million troy oz to over 33 million oz as traders moved metal from London to New York ahead of potential tariffs. That’s a signal worth watching: when the geography of physical gold flows changes, it usually reflects stress or policy anxiety somewhere.

For silver, the picture is more concerning. Registered silver is approximately 82 million oz against outstanding futures contracts representing roughly 576 million oz in claims. The coverage ratio of 13.4% is below the 15% threshold historically associated with stress conditions. The COMEX Silver Stress Index (our composite measure) was 62/100 in April 2026.

COT (Commitment of Traders) report

The CFTC publishes the Commitment of Traders report every Friday, showing how large market participants are positioned in gold and silver futures as of the previous Tuesday. The most useful figure for investors is managed money net longs — the net position of hedge funds and large speculators.

When managed money net longs are at multi-year highs, the trade is crowded. If sentiment turns, those positions unwind quickly and prices fall fast. When managed money is near zero or net short, contrarian bulls pay attention — historically this has often preceded price recoveries. The commercial hedger positioning (miners and producers hedging future production) is the inverse signal: extreme commercial net shorts suggest the industry is locking in high prices, which confirms that current spot levels are elevated in their assessment.

ETF flows as an institutional demand signal

When GLD or SLV holdings rise over time, it means institutional money is entering the market. When they fall, it means institutional money is exiting. ETF holdings aren’t a leading indicator — they follow price, not predict it — but sustained inflows alongside price appreciation indicate durable demand rather than a speculative spike. The 2021–2024 period saw sustained ETF outflows despite rising prices; the demand was being driven by central banks. The 2025 reversal to massive ETF inflows (437 tonnes of net buying in North America alone) confirmed that institutional participation had returned.

Section 8

Practical Buying Guide

How much to allocate

Most financial advisors suggest 5–10% of a total portfolio in gold, though that range is soft. The World Gold Council has published research showing that even a 2–10% allocation historically improved risk-adjusted returns because gold’s low correlation to stocks and bonds provides meaningful diversification in a broad portfolio. Some investors who are deeply concerned about dollar debasement or systemic financial risk hold 15–20%; that’s a legitimate choice but moves the allocation from diversification into a directional bet on gold outperforming.

There is no mathematical answer because the right allocation depends on conviction, time horizon, and what the rest of the portfolio contains. As a practical starting point: if you have no gold exposure at all and want some, a 5% allocation in a mostly-equity portfolio gives you meaningful diversification without overweighting a non-yielding asset.

Dollar cost averaging vs. lump sum

If you’re buying physical gold with a budget, dollar cost averaging (buying a fixed amount monthly regardless of price) removes the stress of timing. For ETFs in a brokerage account, lump-sum investment has historically outperformed DCA roughly two-thirds of the time in backtests, because markets generally go up and waiting means missing gains. In practice, many people find DCA easier to execute psychologically, especially when prices are volatile. Use whichever approach you’ll actually stick to.

Understanding premiums when buying physical

The premium is the markup above spot price that you pay when buying physical gold. It covers the dealer’s cost of acquiring, handling, shipping, and making a profit. Some rough benchmarks:

• 1 oz Gold Eagle (US Mint): typically 4–7% over spot for bullion; higher for proof versions
• 1 oz Canadian Maple Leaf: typically 3–6% over spot
• 10 oz bar: typically 1.5–3% over spot
• 1 kg bar: typically 0.5–2% over spot
• Fractional coins (1/4 oz, 1/10 oz): typically 10–20% over spot — expensive per ounce

Premiums widen during periods of high physical demand (as happened in January 2026). Buy when premiums are reasonable, not at peak premium spikes.

Where to buy — and where not to

Reputable dealers for physical gold include APMEX, JM Bullion, SD Bullion, and Kitco, among others. Local coin shops can work well if you know the dealer and understand the pricing. Check spot price on a site like ours before walking in.

Avoid: airport gold kiosks (massive premiums), TV infomercial gold companies (premium and quality concerns), social media ad gold (frequent scams), and any dealer pressing you to buy collectible or numismatic coins as an “investment” (the premiums are enormous and the markup to re-sell is devastating).

Red flags when buying physical

• Seller claims gold coins have numismatic premiums and will appreciate beyond spot (possible, but requires expertise to evaluate)
• Seller insists on payment by wire transfer only, no returns
• Price significantly below market (fakes exist, especially 1kg gold-plated tungsten bars)
• Any pressure to decide immediately or “lock in this price”
• Claims about “rare” coins that are actually mass-produced bullion

Large purchases ($10,000+) from reputable dealers typically include authentication with the product. If buying from a private seller, a portable XRF analyzer or ultrasound testing is the only reliable way to verify without assay. Weight and density tests catch most fakes but not sophisticated ones. When in doubt, buy from mint-sealed products from established dealers.

Gold price history

Gold Price History: Year by Year (2000–2026)

Gold has been freely traded since 1971, when Nixon closed the gold window and ended dollar convertibility. Over that 55-year span it has compounded at roughly 8–9% per year — more than inflation (around 4% annually) but less than equities in their best decades. The chart below isn’t just numbers; each move tells a macroeconomic story.

Sources: WGC Goldhub, LBMA historical price data, freegoldapi.com. Annual averages are approximate. ATH dates: Jan 21 2008 (~$1,011), Sep 6 2011 ($1,921), Aug 7 2020 ($2,067), Dec 3 2023 ($2,135), Jan 28 2026 ($5,602).

Tax treatment

Gold & Silver Taxes: The 28% Collectibles Trap

Most investors assume gold and silver gains are taxed like stock gains. They’re not. This difference costs people real money, and it’s worth understanding before you build a position.

Physical gold and silver: the collectibles rate

The IRS classifies physical gold and silver — bars, coins, bullion — as collectibles under IRC Section 408(m). This classification has two consequences. First, long-term gains (held over one year) are taxed at a maximum rate of 28%, not the 15–20% long-term capital gains rate that applies to stocks, ETFs that hold equities, real estate, and most other investments. Second, short-term gains (held one year or less) are taxed as ordinary income at your marginal rate, which can reach 37% — same as stocks.

So if you’re in the 37% bracket and sell gold you’ve held for 14 months, your federal rate is capped at 28%. If you’re in the 22% bracket, your rate is 22% (your actual marginal rate, which is less than 28%). The 28% is a ceiling, not a floor — you pay the lesser of your ordinary rate or 28%.

What is taxed differently

Additional taxes to factor in

On top of the federal rate, two additional taxes can apply. The Net Investment Income Tax (NIIT) of 3.8% applies to investment income for taxpayers with modified AGI above $200,000 (single) or $250,000 (married filing jointly). This stacks on top of the 28% collectibles rate, taking the effective ceiling to 31.8% for higher earners. State taxes also apply in most states — California’s state capital gains rate of up to 13.3% means the combined federal + state ceiling can reach 40%+.

Two legitimate strategies to reduce the tax bite

Hold inside a retirement account. Within a traditional gold IRA, gains are tax-deferred and avoid the collectibles rate entirely. Distributions are taxed as ordinary income regardless — but deferring a large gain over decades is still valuable. A Roth gold IRA is the best long-run tax structure: contributions are after-tax, but qualified withdrawals are entirely tax-free, including all the appreciation.

Tax-loss harvesting without the wash sale restriction. Here’s a genuine advantage of physical precious metals: the IRS wash sale rule — which prevents you from selling a security at a loss and immediately rebuying it to harvest the loss — does not apply to physical precious metals or the grantor trust ETFs (GLD, IAU). You can sell gold at a loss in December, claim the loss, and immediately rebuy the same product. This is explicitly allowed as of 2026; verify with a tax advisor as rules can change.

Inherited gold receives a step-up in basis. Gold you inherit is valued at fair market value on the date of death (or the alternate valuation date). All appreciation during the decedent’s lifetime is wiped out for tax purposes — which is a significant wealth preservation tool for holdings with large embedded gains.

Authentication

How to Spot Fake Gold: Tests That Actually Work

With gold above $4,700 an ounce, counterfeiting is a real industry. The most sophisticated fakes use tungsten cores — tungsten has nearly identical density to gold (19.25 g/cm³ vs gold’s 19.32 g/cm³) and is cheap by comparison. A gold-plated tungsten bar can pass a casual inspection. Here’s how to verify without destroying the piece.

Test 1: Weight and dimensions (fast, free, catches most fakes)

Every legitimate coin and bar has published specifications. A 1 oz American Gold Eagle weighs exactly 33.93 grams, measures 32.70 mm diameter and 2.87 mm thick. A 1 oz Canadian Maple Leaf: 31.10 grams, 30 mm diameter. Weigh with a precision scale (0.01g accuracy, costs $15–30 on Amazon) and compare against the official mint specs. Also measure with digital calipers. A weight or size discrepancy of more than 0.1% is a red flag. This test catches most cheap fakes — wrong-weight alloys are the easiest thing to spot.

Test 2: Magnet test (30 seconds, neodymium magnet)

Gold is diamagnetic — it has an extremely weak repulsion to magnetic fields. It doesn’t stick to magnets. If a coin or bar is attracted to a strong neodymium magnet, it contains ferrous metals and is almost certainly fake. Use a neodymium magnet, not a fridge magnet — fridge magnets are too weak to be informative. Limitation: this test only catches fakes with iron cores. Tungsten-filled pieces pass the magnet test because tungsten is also non-magnetic.

Test 3: Ping test (acoustic fingerprint)

Real gold coins produce a clear, sustained ringing tone when tapped — similar to a bell. Balance the coin on a fingertip and tap it with another coin or a pencil. The ring should sustain for at least 1–2 seconds with a clear, high-pitched tone. Base metal fakes produce a dull, short thud. The free Bullion Test app (iOS/Android) analyzes the frequency against known-good reference recordings — useful for coins like Gold Eagles and Maple Leafs where reference data is available. Not useful for custom bars without reference data.

Test 4: Density / specific gravity test (catches tungsten cores)

This is the best home test for bars. Gold’s density is 19.32 g/cm³. Tungsten is 19.25 g/cm³ — so close that weight and dimensions alone won’t catch a solid tungsten bar with thin gold plating. But density calculation will.

Method: (1) Weigh the item in air, record as W₁. (2) Hang it on a thread submerged in water and weigh it while submerged, record as W₂. (3) Calculate: density = $W_1 \div (W_1 - W_2)$. For pure gold, you should get approximately 19.3. For an 18K piece, around 15.5. For silver, 10.5. Any result materially below the expected value for the stated karat is a red flag. Requires a precision scale with a hook or a weighing bridge — kits are available for $40–80 online.

Test 5: XRF analysis (definitive, non-destructive)

X-ray fluorescence (XRF) is the industry standard for authenticating precious metals. An XRF analyzer fires X-rays at the metal surface; the atoms emit secondary X-rays at wavelengths unique to each element, letting the machine identify the exact composition and purity in seconds, non-destructively. This is the only test that catches sophisticated gold-plated tungsten, because it reads through the surface and can detect thickness of plating vs solid composition. XRF machines cost $10,000–$40,000 to own, but many reputable dealers offer free or low-cost XRF testing. When buying a significant amount of gold from a private seller or unfamiliar source, ask for XRF verification before paying.

Constitutional silver

Junk Silver: Pre-1965 US Coins as a Silver Investment

“Junk silver” is a confusing name. The coins aren’t junk. They’re pre-1965 United States dimes, quarters, and half dollars that contain 90% pure silver — and they’re one of the most efficient, divisible, and liquid ways to own physical silver. The name just means they have no numismatic collector premium above their metal content.

The history: why 1965?

From the founding of the US Mint in 1792 through 1964, American silver coins were struck in 90% silver and 10% copper — a composition that gave each coin genuine intrinsic value tied to its metal content. As silver prices rose through the 1960s, the melt value of these coins began approaching their face value. The government had a problem: people were hoarding coins rather than spending them (Gresham’s Law: bad money drives out good). President Johnson signed the Coinage Act of 1965, switching dimes and quarters to copper-nickel clad composition entirely. Half dollars were reduced to 40% silver from 1965 through 1970, then also went clad in 1971. The last silver circulated US coinage was struck in 1964. Today that 1964 coin — worth 25 cents in 1964 — contains about $17 worth of silver at current prices.

The math: calculating melt value

The key fact: every $1.00 in face value of 90% silver coins contains 0.715 troy ounces of pure silver, regardless of denomination. One dime, two nickels' worth, or fractions of a quarter — the silver content per dollar of face value is the same. At $73/oz spot, the melt value formula is:

Why junk silver has advantages over modern bullion

Lower premiums. Bags of mixed 90% coins typically trade at 3–8% over spot. A 1 oz American Silver Eagle usually carries a 15–25% premium. For investors who want maximum ounces per dollar, junk silver wins.

Divisibility. A 1 oz Silver Eagle is all-or-nothing. A bag of dimes lets you sell $5.22 worth of silver at a time. In a barter or liquidity scenario where you need to exchange small amounts, junk silver’s divisibility is a genuine practical advantage.

Instant recognizability. US government-minted coins are universally trusted and identifiable. No one is going to question whether a 1964 Roosevelt dime is real silver.

No wash sale rule. Same as all physical silver — you can harvest losses and immediately re-enter without waiting 30 days.

Quick identification: is your old coin silver?

Look at the edge of a quarter or dime. Pre-1965 silver coins have a solid silver-gray edge. Post-1965 clad coins show a copper stripe through the middle of the edge. That’s the fastest no-test way to identify silver coinage.

Additional guides

How to Store Gold at Home — and When to Use a Vault

Storage is the part of physical gold ownership that most people underestimate until something goes wrong. A few practical principles:

Home safe. For holdings under $25,000–$50,000, a quality home safe provides reasonable security. The safe should be bolted to the floor or wall (unbolted safes can be carried out), rated for at least 30 minutes of fire protection (gold itself doesn’t melt until 1,948°F but paper insurance documents are more vulnerable), and weigh enough that moving it requires tools. A TL-15 or TL-30 rated safe provides meaningful burglary resistance. Budget: $500–$2,000 for a solid residential-grade model. Tell your insurance broker — standard homeowners policies typically cover only $500–$2,000 of precious metals. A rider or scheduled personal property endorsement is needed for larger holdings.

Private vault or allocated storage. For larger holdings, third-party vaults (Delaware Depository, Brink’s Global Services, Loomis, International Depository Services) offer professional storage with insurance included. Costs run $100–$300/year for non-segregated storage, $150–$500/year for segregated. Segregated means your specific bars are stored separately and returned to you; non-segregated means you get equivalent metal back, not necessarily your exact bars.

Safety deposit box. Accessible, but carries limitations: bank hours restrict access, most banks disclaim responsibility for box contents (FDIC doesn’t cover safe deposit boxes), and boxes are theoretically subject to seizure or freeze orders affecting the account holder. Adequate for a small amount; not recommended as the primary storage for a significant position.

Gold Coins: Eagle vs Maple Leaf vs Buffalo vs Krugerrand

These four coins dominate the global bullion market. All are government-issued, broadly recognized, and liquid. The differences matter for buyers:

For IRA eligibility, all coins above .995 fine qualify except the American Gold Eagle, which is IRA-eligible via a specific congressional exception despite being 22K. Krugerrands are also 22K but have no such exception.

Is Gold a Good Investment in 2026?

Direct answer: it depends on what you’re comparing it to and your investment horizon.

Gold has significantly outperformed US equities over the past 12 months — up ~47% while the S&P 500 is down roughly 8% year-to-date in 2026. Over the past five years it has compounded at about 24% annually. On those metrics, yes, it’s been a very good investment.

The honest counterpoint: over the past 40 years, a diversified equity portfolio has substantially outperformed gold. If you had put $10,000 in the S&P 500 in 1985, it would be worth roughly $950,000 today with dividends reinvested. The same $10,000 in gold would be worth about $140,000. Long-horizon equity investors have significantly outperformed gold investors over that period.

The case for owning some gold in 2026 is specific: US fiscal debt is above 120% of GDP with no credible path to reduction; the dollar has weakened 8% year-to-date; CPI came in at 3.3% annualized in March 2026, the highest since 2024; and the geopolitical environment — US-Iran tensions, de-dollarization momentum among EM central banks — has structural drivers that weren’t present in the 1990s or 2010s. These factors support a modest portfolio allocation, not an all-in position.

The case against: gold doesn’t pay a dividend or generate earnings. At $4,728/oz after a 47% YoY gain, momentum investors are already long. The Strait of Hormuz ceasefire that caused the January 2026 spike is fragile but holding. If it holds and inflation moderates, gold could consolidate for an extended period while equities recover. That wouldn’t make gold “bad” — it would just be gold doing what it normally does: providing insurance at the cost of some opportunity.

Recommended allocation for a general investor: 5–10% of total portfolio. Enough to provide meaningful diversification in a downturn. Not so much that underperformance in equity bull markets becomes costly.

How to Sell Gold — Getting a Fair Price

Selling physical gold is straightforward once you understand the market structure. The key is knowing what the metal is worth (spot price) before walking into any conversation.

Online bullion dealers (APMEX, JM Bullion, SD Bullion) typically offer the most competitive buy prices for common coins and bars — usually 1–3% below spot for 1 oz coins. Process: get a quote online, ship insured with tracking, receive payment by check or wire within 2–5 business days. Best for: standard bullion products you bought from a dealer.

Local coin shops offer immediate payment and no shipping risk. Prices are typically 2–5% below spot. Quality varies widely — call ahead, get quotes from two or three shops, and compare against the online dealer quote before committing. Best for: small amounts where shipping cost makes online selling impractical, or situations where you want cash in hand same day.

eBay and Craigslist can yield prices above dealer buyback because you’re selling directly to collectors. eBay gold coins regularly sell at or slightly above spot for desirable products. The downsides: eBay’s fees run 12–13% of the sale price, buyers can be difficult, and shipping/insurance adds cost. Craigslist is cash-only and carries personal safety considerations — always meet in a bank lobby or police station for transactions above $500.

Pawn shops are a last resort. They typically pay 50–70% of melt value. Use the melt value calculator above, compare what you’re being offered, and walk out if the offer is below 85% of melt. If a dealer offers dramatically below spot, they’re assuming you don’t know the market price — now you do.

Frequently asked questions

Gold & Silver FAQ