Should You Sell Gold to a Postal Gold Buyer or at Auction?

Postal gold buyers advertise heavily, and the offer is genuinely convenient, a freepost envelope, a quick decision and money within days. For some items that convenience is worth it. But for anything beyond scrap, the two routes price your gold in fundamentally different ways, and the difference can be substantial.

How postal gold buyers price

A postal buyer weighs your gold, tests its purity, and pays a rate per gram against the day's bullion price, less their margin. The important thing to understand is that the offer is rarely anywhere near the gold price itself. In our experience of seeing what clients have been offered before they come to us, figures barely above half of spot are common, and that is before any question of what the item might be worth as an object rather than as metal. The model is built for speed and volume, not connoisseurship, and it treats a Victorian locket, a signed bracelet and a broken chain in much the same way, as weight. That is entirely legitimate, and the convenience is real, but it means anything collectable is paid for as though it were not.

How auction prices

At auction, gold is offered to a room and an online audience of collectors, dealers and private buyers who compete for it. Weight sets the floor, but rarity, maker, period and condition set the ceiling. A sovereign from a scarce year, a signed piece by Cartier or a maker of note, a good pocket watch, a charm bracelet dense with Victorian charms, these routinely sell for multiples of their melt value because more than one bidder wants them for what they are, not what they weigh.

What the difference looks like in practice

A recent client came to us having been offered £1,800 for a gold pocket watch by a postal buyer. We catalogued it and offered it in one of our specialist sales, where it was bought by a collector. After our commission, the client received £2,850. The watch had not changed, only the audience bidding for it, and the difference of more than a thousand pounds was simply the gap between a weight price and a market price.

Where the difference shows

The categories where auction most consistently outperforms a scrap price are gold coins, sovereigns and Krugerrands included, since collectors pay premiums for date, mint and condition; gold jewellery with any age, signature or craftsmanship; pocket and wristwatches in gold cases; and anything with original boxes or papers. If your items include any of these, posting them to a weight buyer means accepting the lowest sensible valuation of them.

When a postal or scrap sale makes sense

Honestly, sometimes. Broken modern 9 carat chains, single earrings, damaged pieces with no maker and no age, these are worth their weight and little more, and a reputable scrap route is a perfectly rational way to sell them. Even then, it is worth knowing the spot price of the metal before accepting an offer, so that you can judge what proportion of it you are actually being paid. A good auctioneer will tell you at valuation which of your items fall into that category rather than consigning things that will not reward you.

Find out before you post anything

The sensible order is simple, know what you have before you part with it. A valuation at Aubreys is free and carries no obligation, bring items to our Guildford saleroom, send photographs through our free valuation form, or arrange a home visit across Surrey and London. If something is best sold for scrap we will say so plainly, and if it deserves an auction audience we will tell you what we believe it can achieve.

Frequently asked questions

How much do postal gold buyers pay?

Typically a rate per gram against the day's bullion value, less the buyer's margin, and the offer is rarely close to the gold price itself. Offers barely above half of spot are common in our experience, and rarity, maker and age are generally not paid for at all.

Is it safe to post gold?

Reputable firms insure items in transit, but you should always know the value of what you are sending before it leaves your hands, and consider whether the post is appropriate for it at all.

What gold sells best at auction?

Coins with collectable dates and condition, signed and period jewellery, gold watches, and anything with provenance, boxes or papers.

Does a valuation commit me to selling?

No. Valuations at Aubreys are free, confidential and carry no obligation whatsoever.