Lots of people love gold but don’t know a lot about it. By not knowing much about gold, lucrative opportunities can end up passing you by. If you are one of those people who are not gold-savvy, you will find the following tips to be useful.
Before selling gold jewelry, see what the current prices are in the gold market. That will help you determine whether or not a dealer is actually offering you a good price for your pieces. Dealers typically give a fair price, but there are some unscrupulous ones out there. They may take advantage if they think you want to unload your piece fast.
Always research a company you want to send gold jewelry to. Be sure you figure out when you’ll get sent a payment, and be sure things are insured too. You can also protect yourself in case of any disputes by snapping some photos of your jewelry before sending it off.
When you are selling gold, you need to decide whether you want to sell it as a piece of jewelry, or for the melt value. The quickest way to sell off gold (and the one many dealers and pawnbrokers prefer) is for the melt value. Don’t lose faith; there is always someone willing to buy the item as an entire piece.
Before you ship gold jewelry to a buying service, find out whether you will be charged for return shipping. If you are not satisfied with the offer, you will have to pay this amount. A lot of companies say they offer free shipping, but if you refuse their offer they charge a great deal. It’s best to be prepared so you are not surprised by return shipping charges.
If you want to sell gold, make sure the buyer has a state license allowing them to do so. They are likely to be honest. Many individuals, pawn shops and jewelry stores are interested in buying gold. Be picky about your buyers.
Know exactly what you have. Not everything that looks like gold is worth its weight in it. Gold is mixed with other metals for strength. This can make the price a lot lower. This applies to gold plated items as well. Getting gold jewelry appraised is always a good idea if you want to be clear about the potential sale value it represents.
Do your research before selling gold. Compare prices with other gold dealers. This is a price point that you can work with. Ask a bit more than you want so you can negotiate with the buyer or seller.
Speak with the representative at the gold party to find out how they determine how many karats a piece of jewelry is. In most cases, the item is simply stamped. Sometimes, however, you won’t be able to see any kind of a stamp, so the people should have another way to figure these things out. One simple way to do this is to use the acid test; if your rep does this, he might be a novice in the business.
Gold has the potential to be a profitable investment, yet the market can be volatile. If you would be made anxious by unexpected peaks and valleys in the market, you should avoid it. Even if you are okay with taking the risk, you need to prevent downside risks. You want to maintain a diverse portfolio of other investments and make gold only a small portion of it. Typically, you should be okay with five percent.
Never sell some gold just for the sake of doing so. Gold tends to raise in price and while the price is very high now, it could go down more later. Holding onto your gold might mean some serious money over time.
Gold prices have increased by over 400 percent in the last decade which is good if you own gold. One of the most important determinations of gold values is the relative value of the dollar. As the value of the dollar drops, gold usually rises.
You need to know how to test the grade of the gold you buy. Karats are used to rate the purity of gold. Purity will be indicated by higher karats and a higher price. Don’t just rely on the karat stamp. Testing for gold’s purity will prevent you from paying too much for a poor piece.
Prior to investing in gold, set goals. It’s something that is great when used to shield yourself against inflation, but the investment is volatile. If you limit your risk and have set goals, you are more likely to profit.
If you’ve come across a company over the Internet that buys old gold, shop around for pricing before doing anything. Sometimes you may find a better deal at tradition places that buy gold, like local shops or jewelry stores. It may be simpler to mail it in, but is that simplicity worth giving up a profit in the hundreds?
Figure out what the buyback policy of the seller is. Make sure you inquire about any costs associated with the resale of your gold. Think about the cost and inconvenience of shipping gold bars to various locations. To protect yourself, never purchase gold and let your buyer have possession of it.
If you have jewelry that has gems fitted into the gold, ask to keep the stones. If they’re tiny, they may be very hard to remove. Little gems aren’t worth anything to most dealers.
Hold on to or look for US gold coins made prior to 1933. Gold coins were prevalent until President Roosevelt put a stop to their circulation. Some people kept them as souvenirs, and as a result, you can still find them today.
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. After reading this article, you should know more. Use the above tips to make smarter gold decisions.