Have you invested in gold previously? Gold is a great financial tool that you can use to help you grow your investment portfolio and financial future. However, you need to know how to go about doing this. Keep reading so that you can learn all about how gold can help your portfolio.
Avoid buying gold coins for their historical value, unless the investment can stand on its own without the gold factoring in. Although coins with historical value can be very profitable investments, most often it is that alone and not the composite material that makes you money. Don’t confuse the two markets.
Now is the best time to sell because gold prices have been at near record highs. You can sell your broken or unwanted gold jewelry, gold-plated dinner wear, gold coins and even dental gold. Gold buyers are anxious to buy anything that contains gold. Get several bids to ensure that you are getting the best price.
Be sure you research a company before sending them gold in the mail. Your package needs to be insured, and you need to be aware of when you are going to receive payment. As a last step, take a photograph of the package’s contents before you send it off to avoid disputes.
When purchasing gold jewelry, ask the jeweler for a certificate of authenticity. This certificate is proof that you are purchasing a good piece of jewelry made of solid cold. Be sure the certificate indicates the price of the jewelry. Should you ever decide to sell your jewelry, this will be of help.
Make sure that you get your gold valued by a selection of different precious metal dealers before you agree to trade in your gold for cash. The price per gram of gold offered by different precious metal dealers can vary greatly, so it pays to get prices from many different dealers before agreeing on a deal.
One valuable piece of information about gold is that while its dollar value may fluctuate, its purchasing power does not. In other words, if 10 ounces of gold could purchase a car 50 years ago, 10 ounces of gold can still purchase a car today. This is because although the dollar value of the car has increased, so did the dollar value of an ounce of gold.
You may be able to find antique jewelry at resale shops or antique stores that can be sold for more than you paid for it. Make sure to check the gold stamp to determine if it is 24K. This means the gold content is relatively high and you will be able to sell it at a higher price.
If you decide to purchase gold, make sure you go to a reputable dealer. Buying coins from a coin shop may be convenient, but you may not be getting the best deal. Gold prices can fluctuate from one day to the next, so make sure you know how much you should be paying on that particular day.
Know what your goals are before you invest money in gold. Gold is good to have around in a bad economy, but it is volatile. Give yourself the best chance for success by deciding how much risk you are willing to take and what you want to accomplish.
Gold is a great long-term investment. You don’t just purchase gold when it’s price is high. You should actually wait until prices drop to make a smart investment. If you buy gold in good times and bad, and don’t try to time the market, you get a better overall price.
Great deals can be had when you buy gold from the general public. But, you need to know about the risks that come with this kind of purchase. So, it’s key to ask for a coin appraisal. If someone is selling a coin for bargain basement prices and you have some reason to believe they’re not ripping you off, you might skip the appraisal and hope you’re not a sucker.
Try to sell high. Gold prices fluctuate daily. When you understand this market, you will get the most money. Wait to sell your gold until you see the stock market climbing.
When buying and selling gold coins and bullions, realize that you will be responsible for capital gains and losses. The US government treats all gold sales as long term capital gains. The tax rate on such sales is 28 percent. Ensure that you keep good financial records to help prepare you tax return.
When you invest in gold pieces or bullion, beware of the tax implications. The Internal Revenue Service considers investment in precious metals similar to investing in collectibles. That carries a high tax liability than investing in equities. You have to factor that in when you calculate the potential returns of your gold investment.
Never buy gold from a telemarketer. These cold call sellers may use high-pressure sales tactics and inflated assertions about the potential for returns on gold investments. The number of scams involving the purchase of gold is increasing. Only buy gold from reputable dealers and insist on getting physical possession of the gold.
The best strategy for acquiring gold for the purpose of investing is called dollar cost averaging. This means that you purchase a predetermined dollar amount of gold every month no matter its current selling price. Doing this reduces your risk over time and averages out the highs and lows of gold’s market price.
After having read this article, you are now ready to move forward with gold investing. However, you must realize that you do not stop here. You must keep learning as the market continues changing. You have the information necessary not to feel intimidated, so just get out there and make it happen.
