Because of the sudden glut of investors looking for a very safe medium for safeguarding their money, the price of gold on national and international markets has been climbing steadily in recent years. Before engaging with buyers and sellers in the gold market, investors must first understand the ins and outs of investing. Continue on if you’d like to learn the things a gold investor should know.
A great way to invest in gold is through bullion bars. Bullion bars come in a variety of weight. You can find them from a half ounce all the way up to four-hundred ounce bars. If you want a 400 ounce bar, you may have a hard time finding one.
Stay with reputable firms when selling gold. There are several ways to find out about their reputation, such as online reviews or Better Business Bureau filings. A legitimate buyer will pay you fairly for your gold while giving you great customer service. Don’t let yourself be taken advantage of.
You should always ask for timely delivery when purchasing some gold from a reliable seller. Be sure you have your delivery date in writing. Immediate delivery is best. The expected delivery date should not be a mystery; it should be clearly stated. Don’t not follow through with the purchase unless you have this in hand.
Be well informed about the value of precious metals before buying or selling gold. Silver, gold and platinum prices fluctuate often, and therefore you need to verify spot pricing the day prior to your intended deal. 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.
You might balk at the high cost of gold, causing you to select gold-filled or gold-plated items. You don’t have to spend a mint at a jewelry store, though. Find cheap gold in pawn shops or online.
Comparison shop when it comes to selecting a buyer. BBB and consumer reviews are two sources of information that can give you an indication of a dealer’s reputation. You have a better chance of getting the highest possible price for your gold when you obtain bids from a number of different gold buyers.
Look at the current gold market price prior to selling your pieces. This will indicate whether you’re getting a fair price or not. While dealers often give you market value, some are used to sellers wanting quick cash.
Consider a fair return policy as an absolute necessity when you’re purchasing gold jewelry, especially if you intend to make a gift out of it. You’re not going to be sure about the jewelry fitting or whether or not a person actually likes the piece. For this reason, it is important to purchase jewelry items that come with a money back guarantee.q
Be sure to consult the spot price on the day when you plan to purchase gold. This information is readily available online. Be aware that it is updated every day. When you do buy, avoid more than an 8% markup. A few dealers attempt to charge you more than this, but this means they are trying to rip you off.
Take your old gold that you want to sell to a number of different gold-buying companies before settling on one. The “spot” price for gold is determined by a constantly fluctuating market, so not every store is going to pay it. Local stores that don’t have outrageous overhead may be able to pay you more for your gold.
Gold is a lot of fun to purchase, but refrain from announcing it to everyone. You don’t know who could try to keep tabs on this, and you don’t want to have to worry about trusting people. Do not tell others about your investment, and keep it locked up either in a home safe or at a bank. This is the best way to protect yourself and your gold investment.
You can use a magnet to test precious metal inexpensively. It is true that precious metals are not attracted to magnets. In some cases, only an item’s clasp is solid gold, while the remainder is merely plated. Magnets will let you tell the difference.
Don’t rule out getting gold items from thrift stores or antique shops. A smart and educated gold shopper can make some great finds. Lots of folks donate items or sell them in such venues simply because they lack knowledge of their true value. You can reap the benefits of their loss if you do your homework first.
Prior to buying gold, be sure you know the dealer. To find a reputable dealer that sells gold, call the local BBB. You will be able to learn if there have been any complaints lodged against them. If complaints are filed, look for a different dealer.
Be sure you know about the gold in your possession. Even though the item looks like gold, it may not have much value. Often, you will find other metals mixed into the gold in order to strengthen the item. This can lower the price. Also, some items may only be gold plated. Have an appraisal done on large amounts of jewelry or gold whose value you are uncertain about before selling it.
Never sell gold without a purpose! Although the price of gold has hit record peaks repeatedly in the lat few years, in the long term it continues to climb over time. The longer you can keep your gold, the more valuable it will become.
Shop around before you decide which gold buyer you will use. You might be surprised by the price variants. If you do not get several offers, you may not get the best price. Spend a bit of time on the front end so you get the most profit out of the transaction.
In the last ten years, gold’s price has increased about 400 percent. It is not really known whether it is a perfect time to purchase gold, though, that depends on a lot of other economic factors. When the dollar drops in value, gold rises.
It is possible to sell your gold online and send it to a different state. Lots of sellers prefer this process, as it is easy. You ship your jewelry in a prepaid envelope, and then you receive a check. These companies won’t pay the same amount for gold as others though. It’s possible that you might receive an offer that is up to 30 percent less than what you receive from another party.
To get the best deal and to protect yourself, always research the buyer of your gold. That is important, especially when you are mailing in your pieces to someone out of state. Any gold dealer will be listed through your Better Business Bureau.
As with other types of investments, gold should be held long-term. In essence, don’t buy gold at the highest price. That is usually not the best time to buy for investing. If you buy gold in good times and bad, and don’t try to time the market, you get a better overall price.
A good way to get a good price on gold is to ask your relatives for their broken jewelry. Buy your own little scale, weigh each piece and give people a fair price for their items. You should make a profit in the end as well.
If you’re just starting out with gold investing, you should try not to make things complicated. Try to avoid gold futures investments. Futures are not only complicated, but they tend to change. You can lose vast amounts of money if you are not sure how to invest. Let more experienced investors get into such complicated transactions.
If your gold piece has small gems in it, you can ask to keep them after the piece is melted down. Small gemstones may be impossible to remove though. Many dealers do not appreciate small gems as they have no value after being melted down.
You must fully understand what you are purchasing. Lots of gold coins out in the world are merely gold plated. One way to ensure that you are getting an actual gold coin is by asking that the coin be appraised by a certified appraiser before purchasing it.
Make sure that you do not overbuy when you are investing in gold. Gold does not bring income to the table like stocks and mutual funds can with dividends. In addition, gold’s price can be volatile. Only when equities devalue, it will go up in value. You shouldn’t invest more than 5% of your portfolio into the gold market.
It is key when dealing with multiple pieces that the karat types are all weighed separately. This helps you make sure you’re paid accurately for your gold. A one ounce 10 karat gold ring is worth less than a one ounce gold necklace that is 18 karat.
When you sell your gold jewelry, make sure each piece is weighed separately. The higher the karat, the higher the value of the gold will ultimately be. If you weigh all of your items together, you may get a lower price for your items. Therefore, separate them before you try to sell them.
When you sell gold coins, think about the value placed on them by collectors as well as dealers in bulk weight. Therefore, it may not be worth it to sell them to people who are just going to melt them down. That’s why you need to research what you have before you try and sell it.
Always take pictures of the gold jewelry you want to sell before letting the buyer look at the pieces. Be sure to find out what guarantees exist if your jewelry is stolen or lost when it is in their hands. Getting everything in writing will protect you if an issue arises.
When you mail gold items to a buyer, create a detailed list that states what every item is inside the mailer. Make two copies of the detailed list. One copy for yourself and another copy to include with the package.
To know you’re getting a good deal, think about having your gold appraised. Appraisals do cost money. That said, it will be worth it when you get the fair value.
Get your gold appraised for the best possible deal. You will likely have to pay a fee for an appraisal. However, this fee is usually small and prevents you from getting ripped off by a shady dealer.
Do research on any gold seller before you do business with them. There are plenty of rotten apples that are out to deceive in this market. They want to earn money, and they won’t hesitate to give you the short end of the stick as a result. It is your responsibility to prevent that from occurring, which means that you must do research online and ask questions. The more you know, the better your decisions will be.
Research prospective gold dealers prior to engaging in any transaction. There are quite a few shady characters involved in buying and selling gold. They will try to let you have a poor deal. It is your responsibility to prevent that from occurring, which means that you must do research online and ask questions. The more information you have, the better your chances of making a wise decision.
You need to minimize the premiums you pay when purchasing gold. If you invest too much, you won’t earn a profit unless prices increase a lot. Lower premiums will give you a better return on what you invested.
If you buy gold as an investment, you need to proceed with caution. Say you want to purchase a coin that may be valuable to a coin collector or that may have some historical value. Take the time to research this before acting on your assumptions. Many people sell coins claiming they will appreciate in value, but a lot of the time that is not so.
There is an increasing interest in gold trading, and there is no sign of that slowing down. Wise investors put in the necessary time to do their market homework and study prior to stepping into a new financial arena. Apply the ideas within this article to your approach and you can easily find profit in the near future.
You need to know the purity of gold prior to purchasing it. The purest form of gold is 24 carat which is 99.9% gold. 22 karats means 92 percent pure. As the karats go down, the purity of the gold decreases proportionally, with nine karats meaning the amount of gold is 38%.