Many types of arbitrary currency lose value, but gold continues to increase in value. Thanks to this increasing value, gold is a great place to invest your money and a useful tool for managing your finances. When selling or buying gold, you have to think about some things. Use these hand-picked tips to maximize your profits from dealing in gold.
When selling gold, it is a good idea to get an estimated value from more than one source. Many jewelry stores and gold buying services are available, and they will all usually take a different profit on the gold they are purchasing. You’ll get a fairer price if you’ve gotten a few estimates.
Have an understanding of gold prices. The values of precious metals fluctuate daily, so be certain you know the spot price before any transaction. Also be ready to pay increasingly higher percentages above melt values for any gold pieces that are fractional. These include 1/10, 1/2 and 1/4 ounce pieces.
Be well informed about the value of precious metals before buying or selling gold. Prices of precious metals fluctuate everyday, so pick a day to check on the spot price before you buy or sell. A higher percentage over the melt should be expected when purchasing fractional gold pieces such as 1/2 or a 1/4th ounce against a one ounce piece.
Arrange for delivery of your gold at the time of purchase. If this is not possible, make sure you get a written contract outlining when the items will arrive. A date should be spelled on this piece of paper. Proceed with the order only if you get this confirmation.
Understand that any item containing gold carries value with gold dealers. Gold pieces can be anything from jewelry to tableware, even home decor. You can get something for an item if it is not made out of pure gold. You could also sell something that is gold-plated or contains only a small amount of gold. You will still receive money from the sale of these items.
While you may be very tempted to quickly send off your old gold scraps and jewelry to a business that buys gold through the mail, do your homework about the company first. Be sure you figure out when you’ll get sent a payment, and be sure things are insured too. Take a photo of what you mail to battle against disputes down the road.
Check the prices of golds the day you plan to buy. Many sites offer this information, plus it changes every day. Don’t buy anything marked up over 8% of this. Some will attempt to charge even more, but that isn’t ethical.
Have a professional appraise your gold jewelry if you do not know how much it is worth. Although appraisals cost money, you will know the value of your items. If you want to obtain an unbiased value, retain the services of a certified appraiser. If you still decide to sell your gold, you should know that you will not be paid the full appraisal value.
Sell only to gold buyers who are licensed. Licensure is not a guarantee of credibility, but it is certainly a good indicator. Do not be forced into selling to the first buyer you find if you are not happy with the terms on offer.
When selling any gold, you have to decide if it will be as jewelry or for its melt value. Pawn brokers and private sellers may just want to pay melt value. Selling your unique gold pieces to a collector can end up netting you more money.
Be fully aware of what you have. Not all pieces that appear to be gold are worth their weight in gold. Usually gold is mixed with other metals to give it strength. This can make the price a lot lower. This is also true of items that are just plated. If you don’t know what kind of piece you have, take it in to be looked at before you try and sell it.
The day that you plan on buying gold, check its spot price. A number of websites feature this information, and it changes daily. Don’t buy anything marked up over 8% of this. Knowing the value of your gold will keep you from getting ripped off.
Research how the gold market is doing before investing. There may be unscrupulous dealers claiming to be experts in order to get you to invest with them. Be skeptical of “get rich” schemes. Don’t set expectations too high and you won’t be disappointed in your gold investment.
When dealing with gold commodities, proceed with caution. Every marketplace has bad apples, but the gold arena is renown for possessing quite a few. Gold companies will often shortchange you when offering a price for your gold. The benefits of caution and careful research simply cannot be overstated.
Do not sell your gold for scrap until you have it appraised. This is particularly important for unique pieces with detailed craftsmanship. While you will probably pay to have an appraisal on your gold, this can certainly increase profits further along the way. A professional appraiser can also point you towards potential buyers for high-quality gold jewelry.
Talk to a rep at a gold party to see how they figure out the number of karats in a jewelry piece. Sometimes there is a stamp. Sometimes, however, there is no visual sign, so many representatives have other methods of figuring it out. If a buyer uses acid testing, it’s an indication they are a newer business.
Knowing how to determine the grade of gold is essential if you want to invest in gold pieces. The purity of gold is measured by the karat. A higher number indicates a higher degree of purity and, therefore, a higher price. The stamp on the gold is not always accurate. Testing for gold’s purity will prevent you from paying too much for a poor piece.
Prior to selling your gold to a buyer, jeweler or dealer, check them out on the BBB. They will have basic information about the business listed, along with any reviews or complaints from others that have done business with them. Heed any complaints to see if the company resolved them or not. If the number of complaints is high, it would be a wise decision to do business with a different company instead.
You don’t have to physically own gold to invest in it. One option is to buy shares for gold-based mutual funds. Another option is to stick with gold mining stocks. If you decide to buy gold bars or coins, consider how much it would cost to store it securely.
Try selling gold coins when the value has peaked. The stock market and gold prices change every day. You should learn more about the mechanisms of the market so you can sell your gold at the right moment. Watch the stock market climb and then sell the gold coins on the upswing.
When negotiating with the dealer, be sure to read everything with a fine tooth comb. Gold is a huge market that has some serious money involved in most transactions. Know what you’re agreeing to when signing anything. Move on if their terms don’t meet your needs. It can be worth it to make sure you have that extra protection.
You should not try to time investments with gold. It’s an investment to hang onto for a rainy day. If you are going to time it, it’s best to buy when things are quiet. In rough economic climates, gold shortages have arisen.
When selling gold, separate it into different karat value groups. The value of gold varies by karats, and weighing your gold together can cheat you out of money. Gold with higher karat value is more pure and therefore more valuable.
Whatever the market is like, people will always be drawn to gold. You can make a profit with gold whether the markets are bearish or bullish. This flexibility makes gold an appealing investment, but you need to know which strategies work no matter what the market condition is.
Gather information about any gold dealer you are considering selling to. This is very important, especially if you’re mailing it to someone that doesn’t live in your state. Ensure the gold-buying companies you’re using are listed with the BBB to see if any issues or complaints were filed against them.
When you’re crunching the numbers on your gold investments, you’ll find the most useful charts for analysis to be the monthly and weekly gold charts. You can plot trends and analyze all kinds of data by using MCX charts. To take advantage of your research, you should use both kinds of charts.
Inquire if your relatives would be interested in selling any gold they no longer want. Purchase a quality jewelry scale on which to weigh the gold. This allows you to compensate your relatives better than a pawnshop while still earning money on the deal.
Think about how the gold was made when you consider buying it. Gold that was handcrafted is worth more than gold made from a machine. The melt value will stay the same, however when sold as jewelry, it can significantly raise or lower the value of an item.
Investing in gold on the long-term is a good strategy. That means you don’t just buy gold when the price is high. That is usually not the best time to buy for investing. Buying gold steadily over time as the value rises and falls actually give you a better return over time.
Gold is a popular investment for many reasons. The values always go up and the returns are amazing. However, when dealing with the gold market, you need to be educated on the subject. Follow the advice in this article for great value from your gold purchases and sales.
You may get great deals by purchasing gold from individuals. That said, there are risks involved when you do this. It’s really important to request a coin appraisal. If a person wants to sell a cheap coin and you are confident it’s genuine, take your chances and go for it.