How to prepare bullion for sale or transfer

What to take away

Preparation makes a holding legible to a buyer without overstating it. The goal is a lot file someone else can check, not a glossy listing. The same file works whether the next holder is a dealer, an auction house, a beneficiary or a private buyer.

Step 1: freeze the lot

The whole job is to freeze the lot, prove ownership, document condition, collect comparable net offers, then ship, release and record the result.

Assign one project ID and a stable number to every piece. Count each piece twice. Sealed tubes, assay cards, capsules, slabs and loose items all go on the list, and a label is not proof of contents. If a sealed container cannot be verified without opening it, write that in the lot description.

Record product, metal, stated fineness, gross and fine weight where the packaging supports it. Record year, denomination, serial or certification number, quantity, package state. Record visible marks and where the item sits. Flag anything still under authentication review as excluded from the sale.

Step 2: establish authority and acquisition history

Name the legal owner and the person authorized to act. Gather purchase invoices, payment records, gift letters, and trust documents. Also gather estate appointment papers, distribution statements, earlier appraisals, and product certificates. Do not merge records from similar-looking items unless the documents identify the same lot.

Build a basis worksheet with source, date, amount, related costs, adjustments and a confidence level for each line. Leave unsupported fields blank and note what research they need.

Step 3: document current condition

Photograph the whole lot under neutral light: both faces, edges, seals, labels, serials and defects. Make redacted copies for bidders if addresses or security details appear. Do not clean metal, polish bars, strip toning, repair packaging or open certification holders.

Describe what you see. "Capsule scratched," "seal lifted at lower corner," "edge nick at 4 o'clock." Grading language belongs only to a named grading service that issued the grade.

Step 4: prepare a quote packet

Send the same packet to every bidder:

Ask each bidder whether the quote is firm, indicative or conditional, and what market reference controls a price that floats until the metal is in hand.

Step 5: compare net outcomes

Put every response in one table so the numbers sit side by side.

Include these items:

Ask the bidder to correct anything ambiguous in writing.

The figures below are an illustrative example, not a quote.

Worked example: a 10 oz gold lot goes to three bidders. Bidder A bids $31,400 and charges $210 in fees. Bidder B bids $31,850 but adds $950 for assay, $130 in payment fees and $100 for postage and insurance.

Bidder C bids $32,100, and its $1,540 in deductions and five-day cancellation right make its net the weakest of the three. Bidder A pays the most.

Reject any offer that leans on unexplained deductions, or that prices a lot you did not describe.

Step 6: build the handoff packet

Prepare an itemized transfer sheet with these details:

If instructions arrive by email or message, verify them through a channel you already know.

For shipment, use a rigid inner container. Immobilize each protected item. Keep metal from touching metal. Add tamper evidence. Then place the inner package inside a plain outer box. Photograph the sequence without exposing full labels in files you share widely. Confirm the carrier service accepts and covers the contents under its current terms before you hand anything over.

Services to price include USPS Registered Mail, FedEx Declared Value and UPS Capital. In Canada, Canada Post Registered Mail is the usual equivalent. For each one, check the maximum coverage per shipment, whether bullion is a restricted or prohibited item, who signs on delivery, and how long you have to file a claim.

Declared value and an adult signature are standard conditions, so confirm them before you seal the box.

Step 7: preserve basis and disposition records

The IRS explains in Topic 703 on basis of assets that basis is generally what was paid, including sales tax and other expenses connected with the purchase. Gifts and inheritances can follow different rules. That makes the acquisition file part of sale preparation, not an afterthought once the money lands.

Reporting is separate from basis. The IRS correction to the Form 1099-B instructions on sales of precious metals says a broker need not report gold, silver, platinum or palladium sales unless the metal is in a CFTC-approved futures form.

Even then it is not reportable below the contract minimum, and sales to one customer within 24 hours count as one sale.

Ask the buyer what it intends to report. For your own position, work with a CPA or tax attorney.

Store the acquisition evidence beside the final gross proceeds, deductions, net receipt, disposition date and buyer statement. If a professional supplies a valuation or tax conclusion, keep the signed report and its assumptions, not just the final number.

Step 8: release and reconcile

Before release, recheck lot IDs, recipient identity, payment status, and delivery address. Also recheck service level, package weight, and receipt form. After delivery, save tracking, buyer acceptance, inspection result, settlement statement and bank confirmation. Mark the inventory line disposed only when the completion condition you agreed actually happens.

For an in-kind gift or estate distribution, get a signed acknowledgment listing the exact objects, date, condition, documents delivered and any valuation supplied. A zero-dollar transfer still needs a custody record. Disputes over ownership or inheritance belong with a licensed attorney in the relevant jurisdiction.

Common questions

Should bullion be polished before a sale?

No. Cleaning alters surfaces and condition, and buyers price the change against you. Document the item as it is and let the buyer judge it from the photographs.

What belongs in a bidder packet?

An exact lot list, a factual condition description, useful photographs, your timing and the terms a bidder needs to quote a comparable net figure. Send the identical packet to everyone so the offers can be compared.

When should an inventory line be closed?

After the agreed handoff, acceptance and settlement conditions are documented. Until then the item is still in your custody and still on your list.

Does a gift need a transfer receipt?

Yes. A signed, itemized acknowledgment records ownership, custody and the condition at handoff, which is what a later basis question will need.