Gold is something everyone’s curious about but not everyone is knowledgeable on. That little amount of knowledge makes it tough for many to take full advantage of gold as an investment. If you are not that knowledgeable about it, the following tips should help you navigate the world of buying and selling gold.
It is important to understand the type of scale your gold dealer uses. Some dealers use a Troy scale while others use a pennyweight. On a Troy scale, gold weighs 31.1 grams per ounce. A pennyweight equals 1.555 grams. In comparison, a US scale measures each ounce of gold at 28 grams.
Do your research on the fee and commission structures for the dealer you are considering. Every dealer will have slightly different commission structures. Some may be more fair to you than others, so use it as a way to comparison shop against multiple dealers. This way, you can get the best deal for you possible.
If you have an interest in gold and also want to start your own business on the side, combine the two passions. Collect scrap gold from various sources, like friends and classified ads, and learn how to treat and melt the pieces into pure or near-pure gold. You can easily find a buyer for your end-product and repeat the process!
You can sell anything that contains gold to gold dealers. Don’t overlook flatware, watches, jewelry and even broken pieces as potential sources of profit. The purity doesn’t even have to be 100%. Even something partially gold or just gold-plated might mean money. You will still get a favorable return.
Before selling any of your gold, check to see what the current sales price is. This will help ensure that you are getting the amount of money you deserve. There are many reputable sites available online that will help you on coming up with a fair price for your gold.
If you decide to invest in gold, you need to consider it a long-term investment. The price of gold fluctuates constantly but over the long term, prices increase. Even if you plan to make a large investment in gold, buy gold bars or coins separately over a short period of time.
Those costume earrings you’re holding in your hand may have real gold backs or hoops. Necklace clasps and bands to rings are usually real, too. These pieces don’t weigh much, so try selling them all as a “lot.” That means they are collected into an assortment that can bring a better price together.
If you are looking to find a great deal on gold and other precious metals, try going to flea markets and estate sales. If you really take your time to look around thoroughly and do some hard core digging, you can end up finding pieces that others have overlooked.
Sort your gold by how many karats it is. This will ensure that you are paid correctly; otherwise, a dealer may try to pay you using the lower karat weight values. This of course results in fewer dollars for you. Be safe and maximize your value by having all the gold separated before dealing with the buyer.
Do not purchase gold jewelry with the idea that it is an good investment. Because the gold in jewelry is not pure, it is unlikely it will ever be worth its purchase price. A much safer choice for investing in gold is to purchase gold coins, bullion or gold stocks.
Know that the gold jewelry you buy online may be different than you think it really is. When you cannot hold something and look it over in person, you may be disappointed when you get the item. This is because there’s no telling what the quality will be like with just the picture.
If you just want to off-load your gold, you should pause. Gold prices always go up. Why not wait until you can get a better price? You will get more out of your gold if you keep it for a long time.
Learn how to verify the quality of gold pieces. The purity of gold is measured by the karat. The more the karats, the more the gold is worth. The karat stamp alone is not an indicator of the true purity of gold. Knowing how to test the purity of gold will ensure that you will not overpay for poor quality.
It can be tempting to take the first offer for your gold, but don’t always jump at it. What might be a piece of scrap gold to someone, might be an antique or catch the interest of a collector. Doing a little research before selling your gold can really end up paying off.
Don’t be afraid to travel a little bit to get an appraisal. Sometimes suburban gold dealers offer better rates than dealers in the middle of the city. It can be worth the extra gallon or two of gas to potentially get a hundred or more dollars more in the sale.
With any investment you make it is prudent to seek longer term strategies and that includes gold. You can’t just buy when prices are high. You should actually wait until prices drop to make a smart investment. If you make gold purchases under a variety of conditions and avoid timing the market, you can get great prices.
When buying gold coins, the best deals can be found by sticking to one ounce amounts. The common and popular American Eagle gold coin comes in one-tenth, one-quarter, one-half and full ounce weights. Buying the coins issued in fractional denominations can carry a premium over the gold’s actual spot price.
As the start of this article discussed, as much as gold is loved, it’s not a subject most people can say they know all about. But now that you have read this article, you know more about it. Use the knowledge you’ve acquired to assist you with making better decisions regarding gold.
