Buy-Back Price Calculator — Calculate Precious Metal Buy-Back Value
1.00g × 1 × 108.7274 £/g
Actual buy-back prices vary by dealer, quantity and market conditions. This calculator is for guidance only.
Standardized, easily resaleable
Well-known coins with high demand
Must be melted down, higher effort
Non-uniform, refinery required
- 1. Get multiple offers — prices vary significantly between dealers.
- 2. Know the fineness — check the hallmark (e.g. 750, 585, 333).
- 3. Consider timing — sell when spot prices are high.
- 4. Refinery as alternative — often better terms than local dealers for large quantities.
Calculate pure material value — without dealer margin, for comparison.
Is the coin exempt, and what is left after the Annual Exempt Amount? Estimate the Capital Gains Tax.
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We pour our heart into keeping preciousmetalprices.com fast, clean and free — no paywalls, no clutter, just reliable facts and live prices. If it helps you, the nicest way to say thank you is to pass it on. Every share helps a fellow investor discover us and keeps the project going. 💛
Buy-Back Price vs. Material Value
When selling precious metals, you will quickly notice: the buy-back price at the dealer is always below the current spot price. This difference is not fraud, but reflects the costs that a reputable precious metals dealer incurs with every purchase. Nevertheless, it is worth understanding the composition of this margin — because the spread varies considerably depending on the product and provider.
What the Dealer Margin Covers
When a dealer buys your gold, they must factor in a range of costs before initiating resale or melting:
- ◆ Authenticity testing: X-ray fluorescence analysis (XRF), density testing or acid testing — for unknown pieces, thorough testing is essential
- ◆ Insurance and transport: value insurance for inventory, secure transport to refineries or wholesale partners
- ◆ Storage: high-security vault, alarm systems and physical security measures cause ongoing costs
- ◆ Price risk: the dealer bears the risk of falling prices between purchase and resale — in volatile markets a real loss factor
- ◆ Profit margin: the dealer must cover staff, rent and business costs and achieve a reasonable profit
Typical Margin Ranges by Product Category
The size of the deduction largely depends on how standardized and easily resaleable the precious metal is. The less effort the dealer has, the closer the buy-back price is to the spot price:
Rule of thumb: The more standardized and well-known the product, the smaller the deduction. An LBMA-certified 100 g gold bar almost always achieves better buy-back terms than a gold chain of unknown origin.
Where Is the Best Place to Sell Gold?
The sales channel often has a greater impact on the price achieved than the current spot price itself. Depending on the type and quantity of precious metal, different channels are suitable. Below, the four most common options are compared with their respective advantages and disadvantages.
Local Jeweler or Precious Metals Dealer
The classic approach: you bring your gold to a shop in person and receive immediate cash or a bank transfer. Especially suitable for jewelry and smaller quantities.
- ◆ Advantage: Immediate payment, personal advice, no shipping risks
- ◆ Disadvantage: Often higher margins than online buyers, limited comparison options on site
Online Gold Buyer
Specialized online buying platforms often offer better terms than local dealers, as they work more efficiently through higher volume and lower fixed costs. You send your precious metal via insured parcel and receive a binding offer after inspection.
- ◆ Advantage: Often better prices, convenient from home, transparent price lists
- ◆ Disadvantage: Shipping risk (use insured shipping!), waiting time until payout (2–5 business days)
Refinery (Assay Office)
Refineries buy directly from private sellers and process the material themselves. Since the middleman is eliminated, you often get the best prices here — especially for larger quantities or hard-to-value material like dental gold or antique jewelry.
- ◆ Advantage: Best prices for large quantities, professional analysis, no premium deduction for collector value
- ◆ Disadvantage: Often minimum quantities (e.g. from 50 g), longer processing time, few locations
Private Sale (eBay, Forums, Classifieds)
Direct sale to private individuals can yield the highest proceeds — especially for sought-after coins with collector value. However, the effort is high and the risk of fraud should not be underestimated.
- ◆ Advantage: Potentially highest price, collector value is recognized, no dealer margin
- ◆ Disadvantage: Fraud risk, time investment, platform fees, no professional inspection
For LBMA bars and well-known bullion coins, online gold buyers or a refinery are worthwhile. Jewelry and dental gold achieve the best results at a refinery. For coins with numismatic value, a private sale can be worthwhile.
Checklist: Successfully Selling Precious Metals
Whether gold bars, silver coins or inherited jewelry — with the right preparation you will get significantly more from your precious metals. Consider these points before visiting a dealer or selling online:
Check the hallmark (e.g. 750, 585, 999) and weigh your precious metal on a calibrated precision scale. The hallmark can be found on the inside of jewelry and on the surface of bars. Without this information, no reputable dealer can make a fair offer.
Inform yourself about the current spot price beforehand. This way you can realistically assess the dealer's offer. Use our buy-back calculator above to determine the approximate material value of your item.
Compare offers from multiple dealers — local and online. Price differences for the same item can be 5–15%. A reputable dealer will never make a "now or never" offer.
Ask to see the weight on the dealer's scale and compare it with your own measurement. Reputable dealers use calibrated precision scales and weigh openly in front of the customer.
Original invoices, authenticity certificates and LBMA certificates increase the buy-back value and speed up the inspection. Bars with intact blister packaging achieve higher prices.
Sovereigns and Britannias are exempt from Capital Gains Tax; bars and foreign coins are not. If you are selling chargeable items, consider whether to split the disposal either side of 5 April to use two years of allowance. Our Tax Estimator gives you the figure before you commit.
Reputable buyers do not pressure customers. If a dealer insists on selling immediately or claims the price is only valid today — leave. A good price is still a good price tomorrow.
Always have a detailed receipt issued stating weight, fineness, buy-back price and date. It is your evidence for HMRC and your protection if a dispute arises.
Tax Aspects of Selling Precious Metals
Selling physical precious metals in the UK is a matter of Capital Gains Tax under the Taxation of Chargeable Gains Act 1992. There is no holding period: a gain is chargeable whether you owned the metal for a fortnight or for twenty years. What does decide the outcome is the coin itself — anything struck as Sterling legal tender falls outside the charge altogether.
Legal Tender Coins Are Exempt
Gains on Gold Sovereigns struck from 1837 onwards and on the whole Britannia range, in gold and in silver, are free of Capital Gains Tax because the coins are currency in the UK (TCGA 1992 s.21(1)(b); HMRC CG78305). Bars, Krugerrands, Maple Leafs, jewellery and scrap are chargeable assets. The exemption follows the coin, not the metal — a silver Britannia is exempt whilst a silver Maple Leaf of the same weight is not.
The Allowance and Identifying What You Sold
The Annual Exempt Amount of 3,000 GBP is an allowance, not a threshold: only the part of your gains above it is charged. Realise 3,001 GBP and you pay tax on 1 GBP. It covers all your chargeable gains for the tax year together — bullion, shares, a second property — and it cannot be carried forward.
If you bought in several tranches, keep item-level records so you can show which pieces you disposed of and what they cost, on a basis you apply consistently. Serial numbers make this straightforward for bars; for identical coins, a dated schedule of purchases does the job.
Work out the figure: use our Tax Estimator to model a disposal — the gain, the Annual Exempt Amount and the 18% or 24% rate.