Why do Gold Dealers Buy Gold Nuggets?

Why do Gold Dealers Buy Gold Nuggets?

According to the World gold Council, there is about 50,000 metric tons of gold yet to be mined but what about the gold that’s already above ground? What about gold nuggets? Contrary to popular belief, there are places in Australia where you can literally stumble across a priceless gold nugget. If you are as dedicated as the folks on the “Aussie Gold Hunters” TV show, you could dedicate your time to fossicking and actually find a nugget or two. Like Brent Shannon and Ethan West who found two nuggets weighing 3.5kg in Tarnagulla, VIC. These nuggets are said to be worth A$350,000. These aren’t the only recent finds in Australia. Because nuggets are so rare and so expensive, a lot of people prefer to keep their finds to themselves. Some keep the secret to stop would be gold hunters from coming to the area and finding more nuggets in the ground.

What should you do if you find a gold nugget? Sell it, of course. But before you go to the first gold dealers Melbourne who advertises that they buy gold nuggets you should know a couple of things

Spot Price

Gold nuggets aren’t pure gold. They are unrefined pieces of rock with inclusion of other minerals. The spot price of gold is important to know but you should know that gold nuggets aren’t evaluated the same way as any other gold products. Most gold dealers Melbourne buy gold and sell it to refineries where it is melted and turned into something new. Gold nuggets are rare and most people who are specifically looking to buy gold nuggets are collectors willing to pay as much as 30% more than what a particular nugget is worth. These nuggets are usually kept as they are and are never melted.


Gold nuggets are simply lumps of gold. Your might find some quartz lodged between the cracks or other inclusions that make the lump of gold stand out. Nugget collectors will pay above premium prices for a nugget that is attractive or has something unique about it that makes it stand out.


Gold nuggets are a rare find but where you find yours can also have an impact on the price. Everybody likes a good story, especially one with a surprise twist. If you found your nugget in an area not known for nuggets, that could affect the price. If you actually tripped on a nugget by accident and not used a metal detector to find it, you might get a better price for it. Collectors tend to be romantic in their choices and this will work in your favour.

Nugget Size

Size matters when it comes to gold nuggets. The bigger, the higher the premium price.

There are lots of places you can sell your gold nugget to but be careful, know what your nugget is worth before you try to sell it. Have it appraised. This way you will know if you are being lowballed or being offered the best deal.