Gold has long had a history of being a commodity that is well revered. Since it was discovered, people have been interested in gold. Keep reading for information on investing in gold and maximizing your purchasing power.
Before buying or selling gold, know how all the prices work. Gold, along with silver and platinum, have prices that change on a whim. Therefore, you must always know what the spot price currently is. 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.
Get several opinions about the value of your gold piece before you put it up for sale. There are quite a few stores selling jewelry or that buy it, and they sometimes make more money on the gold than you make on it. If you’re able to work with a couple of different places, you can see if you’re getting the best deal.
Consider delivery time when buying gold. If your seller can’t commit to immediate delivery, get the delivery date in writing. You should be provided with the estimated date of delivery. Do not complete the order unless you have this in writing.
Bullion bars are usually the safest way to invest in gold. The weights of these items may vary. They range from just under an ounce on up to 400 ounces. The larger bars can be very difficult to find.
Realize that any piece containing gold is marketable. Decorations, flatware, broken jewelry, anything you have with real gold content is potentially valuable. Note that these items need not be pure gold. It could be part of an item that’s gold, or just gold-plated. You are sure to turn a decent profit.
If you don’t have lots of money to buy gold, but still want to profit on the upside, think about buying scrap gold. This can be done in tiny increments which allow you to build wealth slowly. Stash your gold in a place that is safe so that you can cash it in later.
If you want to unload scrap gold pieces or jewelry items for cash, do your homework first. Many stores do not pay the going rate for gold. Stores not inside major shopping malls might have lower rent and overhead, and so can pay you more.
Comparison shop when selling old gold jewelry. Though there may be a standard market price for gold at a particular moment in time, not every store will pay it. Try to focus on stores that are not located in a mall, as their overhead may not be as high, which means they might have the ability to give you a better return on your gold.
Don’t let others know you invest in physical gold. You really don’t know who can be trusted when it comes to your investments. Do not tell others about your investment, and keep it locked up either in a home safe or at a bank. This keeps your gold hidden and secure, as it is a very valuable investment you want to protect.
When selling gold, research the market price. Check out the competition and what they are offering. Doing this will provide you with a helpful price to work around. Begin the negotiations by asking for more than you expect to receive.
Go through thrift shops and antique stores looking for gold. If you have an idea of what you are seeking, you can really find a bargain in these places. Lots of folks are unaware of the value of the items they donate to these places. If you know what you’re doing, you can make the money they did not.
A cheap and quick way to test gold is to use a magnet. Precious metals, such as gold, are not magnetic. Check the chain as well as the clasp for an accurate reading. The magnet test is an excellent way to find out.
Use a magnet to determine if an item is made of gold. Gold and other precious metals are non-ferrous, so they won’t be attracted to a magnet. Certain pieces have a clasp made of real gold while the remaining parts are plated. This is a smart idea to test it this way.
In many cases, earing backing are solid gold even the total piece is not. Clasps of necklaces and ring bands are often real gold as well. Because each piece does not weigh much, consider selling these as a group. This is a bunch of different gold pieces in quantity and can help you to get more money for them.
Be certain to review the sales contract carefully. If you want to sell gold to mail-in gold buyers, read the small print carefully before you sell. This helps you see how much is paid toward commissions and fees.
Before you buy gold, know the dealer. Speak with the BBB in your area to be sure the dealer is reputable. The BBB can tell you if the dealer has had any complaints. Look for dealers who have few complaints and a good record of complaint resolution.
Many times the backs of earrings are solid gold, even if the earring itself is not solid. In many cases ring bands and the clasps of necklaces are real gold too. They don’t weigh too much so you may want to sell them all together. Selling in quantity increases your profit.
Do not sell your gold just because you can. 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. If you don’t need the money, hang on to your gold.
Gold should be separated by karat weight before sale. If the vendor weighs all of your items together, you will not get a fair price for your higher karat items. You will walk away with less money. Have everything organized to maximize the amount of money you get.
When you sell gold, separate your gold into groups of different karat values. The value of gold varies by karats, and weighing your gold together can cheat you out of money. The higher the karat value, the higher the value of your gold.
Scrutinize any forms that a gold dealer gives you. This is a business transaction after all. Make sure you completely understand the contract you are signing. When the terms aren’t up to your standards, don’t sign. It is worth it, sometimes, to protect your finances.
As with the majority of investments, gold investments are best entered into with a long-term expectation. For this reason, you should not only purchase gold when prices are high. Actually, this is a poor time to invest. You can get a much better return on your investment if you buy and sell at the right moment.
Before you buy gold, know the dealer. Call the BBB or visit their online website to get assistance in finding a reputable gold dealer. This will help you find any complaints registered against any gold dealers. If you notice there are registered complaints, then you need to choose another gold dealer.
Great news for gold owners: gold has gone up in price over 400 percent in the last decade. Investing in gold depends on how good the dollar is doing. Essentially, a weak dollar means strong gold prices.
Wait for the value of gold to increase before selling your gold coins. The stock market and gold prices change every day. If you understand how the market works, you will be able to get more for your money. When the stock market is rising, a sale of gold coins will be profitable too.
If you are new to gold investing, keep it simple. Try to avoid buying gold futures, for example. Futures are riskier and more complex. It is possible to lose a great deal of money fast if you are not experienced. Let people that are pros deal with things like investments that are complex.
It’s critical that you avoid overspending on gold. Do not expect to get an income from your investment in gold. The price of gold can fluctuate wildly. Gold rises in value as equities lose value. No more than approximately 5-10 percent of your portfolio should be invested in gold.
Find out if you can retain any small gems from a gold item that is destined to be melted down. Small gemstones may be impossible to remove though. In most cases, small gems will be overlooked since they do not have any value once a piece of jewelry is melted.
Monthly and weekly gold price charts are the best way to stay informed about the fluctuations in the price of gold. If you want have something with which you can sort out relevant data and even plot trends, then MCX charts are the way to go. Utilizing both weekly and monthly charts will provide the most useful information.
It’s essential that you do not buy too much gold at a time. Gold does not bring income to the table like stocks and mutual funds can with dividends. The price is volatile as well. When equities are devalued then gold goes up. It’s a good rule of thumb to restrict gold investment to no more than five percent of your overall portfolio.
Prior to giving your jewelry items to a buyer to examine, make sure to inventory them. In addition, don’t make guarantees if jewelry is stolen or lost while the buyer is looking at it. Make sure there is a written record of all jewelry pieces just to be safe.
Be sure you are getting what you think you are getting from your purchase. Some coins out there that you may think are gold or actually 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.
Keep a complete inventory of any gold items you mail to a buyer. Have at least two copies of this list. Include one detailed list in the mailer and keep a copy of the list for a written record of the items that were shipped.
Gold is not an investment that you try and time. Instead, it is an investment that can be thought of more as wealth insurance. Watching the market and buying when the market is at its lowest is a smart idea. There have been gold shortages during hard economic times.
Having read this article, you should have a clear understanding of gold value both financially and as a treasured item around the world. Not only does gold look beautiful when worn, it is always a very worthwhile investment. Use all the valuable tips learned here so you can make wise investments in the gold market.
When selling gold coins, consider both their value to collectors and their value as gram weight. You may lose money if you sell it by gram weight alone. This points up the advantage of doing your homework about value before hand.