Gold is a great investment when financial times are tough. However, the necessary understanding of gold markets has sometimes been elusive, even to diligent investors. Read on to learn about the pros and cons of trading in gold.
If you have an interest in getting into the gold markets, but don’t have a lot of investment capital, consider buying scrap. You can do this over a period of time, say around each pay day, and accumulate a considerable amount of valuable gold within a year or so. Keep the gold somewhere secure until you’re ready to sell it.
Get several opinions about the value of your gold piece before you put it up for sale. There are lots of services, jewelry stores and pawn shops that buy gold. Of course, they will want to make a profit when they sell it. When you have several estimates, you’ll have a better idea of what fair market value is.
Get an appraisal to find out the exact value of your jewelry. While there is a cost involved, you will at least then be fully aware of what you own and what it is worth. Make sure you go to an accredited and reliable appraiser to get valid appraisal papers. However, do not expect to receive the exact amount suggested by the appraisal when you sell the gold.
It is important to research the current value of gold before selling your gold. If you choose to sell gold items, those with differing karat designations ought to be weighed on their own. Remember that jewelry will sell at its melt value, not the price the jeweler wants for it.
If you are sending your jewelry off in the mail, make sure you investigate how much it will cost you to have the pieces sent back to you if you don’t like the offer. Most companies will advertise free shipping, but they often charge a lot to put the items back in the mail. You should be well aware of what this could cost in advance.
Be sure to find a reputable gold buyer to do business with. You are able to find out more about their reputations with the local BBB and through online reviews. Reputable buyers will pay fair rates for gold and will provide solid customer service. Doing this protects your investment.
Your buyers should always have gold-buying licenses from the state. Licensed buyers are much more reputable, and then you can stop worrying. There are plenty of buyers for gold, so do not think that you must make a sale to the first buyer that you meet.
Get a good education in precious metal pricing before you try to buy or sell gold. There are fluctuations in the prices of these metals every day, and you will want to know the current price. Understand that you will likely pay a higher price for fractional pieces. A half an ounce, for instance, will not exactly cost one half the price of an ounce, it will be slightly higher.
Don’t go into the situation blindly when selling gold; always know what the market price is. See what others are bidding for gold items similar to yours. This will help you figure out a good price point. Ask a bit more than you want so you can negotiate with the buyer or seller.
Whenever you make an investment in gold in the form of jewelry, always ensure that you have sufficient documentation and can return it if required. You do not know if the gift receiver will like it or if the piece fits. If the gold turns out to be fake, make sure you get your money back.
Look around before buying from a particular gold buyer. You’d be surprised in the variance of prices you’ll get offered. If you don’t shop around, you may not get what you are owed. Spend a bit of time on the front end so you get the most profit out of the transaction.
Talk to someone at any gold party to determine how they decide a piece’s karats. Often, the item will be stamped. Other times, there is no way of knowing. An acid test can be a very simple way of doing this, so be aware of that.
When it comes to selling gold, you must decide if you are going to sell it just for its melt value or as a jewelry piece. The quickest way to sell off gold (and the one many dealers and pawnbrokers prefer) is for the melt value. If you want to sell your gold as a jewelry item, you should keep looking for a good buyer.
Research gold before investing in it. Some people will make false claims to try and get you to invest. However, you have to be aware of unfounded promises regarding quick riches. Gold won’t get you rich overnight, so don’t expect as much.
Make sure you verify the price of gold the same day you plan to buy it. Many websites contain this information and it varies every day. Only place your order if you can find a dealer willing to sell for an 8% markup or less over the spot price. Some sellers try charging more, but that’s overcharging, which is generally unethical.
Find a gold buyer that lets you send them your gold. Many sellers enjoy this method due to how simple it is. You receive a postage-paid envelope in which you place your gold items, put it in the mail and wait for a check. However, remember that these companies often don’t pay as much for your gold as other places. Sometimes you’ll find that people are only willing to give you 30 percent less of what an item’s worth, so watch out.
If you don’t want to worry about storing, shipping and insuring your gold, consider buying GoldMoney instead. It s sort of like a bank account for gold. You will simply establish and account, deposit fund and receive the value of your account in gold. It then is kept in a vault. The gold is yours to cash in if you wish. You may also redeem it for physical gold later.
When negotiating with the dealer, be sure to read everything with a fine tooth comb. This business is about the dollar signs, and you must recognize this. Be aware of what you’re signing. If you’re not comfortable with any terms, pass on it. It can be worth it to make sure you have that extra protection.
Keep your gold investing to yourself. You cannot put your trust too easily on people. Keep your investments personal and protect them at a safe or bank. This protects you as well as your gold.
Be sure to learn how you can test the grade of gold you are considering purchasing. You measure the purity of gold in karats. The more the karats, the more the gold is worth. Don’t rely on the karat stamp. If you can test the purity, you will never over pay.
Have all jewelry appraised before selling it as scrap gold. This is true for pieces made with fine craftsmanship. An appraiser will charge you a nominal fee, but it is an expense worth paying if your piece is unique and valuable. An appraiser might even be able to help you sell your special item.
Doing some research into any potential gold buyer is a good way to both protect your interests and score a good deal. This is critical if you are looking into a mail-away type service with a buyer in another state or community. Check the BBB’s website to see if there have been any complaints lodged against any company that you’re thinking of using.
Look at every form you need to sign when working with gold dealers. This business has its hands in a great deal of money. You need to know what you’re signing. If you disagree with the terms of the sale, do business with someone else. Sometimes it’s worth it to protect yourself financially.
A good way to get good value out of gold is to see if any relatives have broken items that they no longer want. Purchase an accurate jewelry scale to weigh your gold. With a good scale, you can offer to buy gold for more than pawn shops will offer.
Gold is often volatile even though it can be a good investment. If you would be made anxious by unexpected peaks and valleys in the market, you should avoid it. Even if you’ve got the stomach for it, you still need to minimize your risks. Only invest a small amount of your financial portfolio. Many experts say that no more than 5 percent of your assets should be devoted to gold.
Be aware that you will not get the full prices for any of your gold. Just like any other business, gold dealers are in it to profit. For this reason, they must leave some difference between the value of your gold and the amount they are willing to pay. Expect offers to be in the range of 50-70% of the entire value.
Learn how to verify the quality of gold pieces. Purity is rated in karats. The more the karats, the more the gold is worth. The stamp on the gold is not always accurate. Knowing when you should test gold’s purity can help you avoid overpaying for poor quality.
It is important that you don’t buy too much when investing in gold. It is not the right type of investment to provide an income. Not only that, prices can be volatile. Significant value increases only occur when equities drop. Never invest greater than five percent of your whole portfolio in gold.
Know who is getting your gold. This is key if you are using mail-in services or buyers who are not local. Gold buying companies should be listed with the Better Business Bureau, where you can see if any complaints or issues have been filed against your buyer.
You can invest in gold without having tons of money up-front. You can definitely start out small. You can get small gold pieces of jewelry or coins when you’re able to afford it. As time passes, your collection will accumulate, at which point you will have plenty of gold.
You can invest in gold by purchasing beautiful gold jewelry. This investment can also be used as a fashion accessory. Jewelry that’s well made is going to make that piece worth a lot more money and it’s good to put money into.
Before leaving your gold jewelry in the hands of a potential buyer, take photographs of your pieces. Also, ask about any guarantees in case the jewelry is stolen or lost while in their possession. Get everything in writing to protect yourself.
Photograph each gold item before shipping it to the buyer. You may need these as evidence of shipment at a later date. Make sure to capture any identifiable marks in each piece. This can include engravings and other highly-identifiable marks.
Like other kinds of investing, gold works better as a long-term investment. So, don’t just purchase gold in times when it is high in value. Actually this is not when you want to make an investment in gold. But if you purchase gold consistently, you’ll find that the price evens out over time.
If you wish to sell items through mail services, ask the company about a reimbursement policy if they lost your items by mistake. A company might limit their liability on packages. If the company limits the amount of liability assumed, ask if they offer additional insurance that can be purchased.
Gold has made and broken men a thousand times before. To use gold to your favor, you need to have a well rounded education about gold. Hopefully, you now know what you need to do to get started.
When selling your jewelry that is made from gold, know that it is not going to make you rich. Even though a lot of TV commercials claim you get to make a serious amount of money selling your excess gold, it doesn’t turn out to be the case for the majority of folks. It’s very common for people to turn over their old gold and receive only a couple hundred dollars in return.