Gold is a great investment when financial times are tough. But not everyone is privy to the special knowledge it takes to successfully invest in gold. Keep reading the material that follows below to gain a useful education on the ins and outs of buying and selling gold.
Bullion bars are usually the safest way to invest in gold. There are numerous sizes available. From .5 ounces to 400 ounces, the choice is yours. The 400 ounce bars are generally hard to find.
Always do your homework to find an honest and reputable gold buyer. You can see how various dealers handle customer complaints by viewing online reviews and contacting the BBB (Better Business Bureau). Check for offers through different buyers to make sure you get the best price for your gold.
Sometimes the cost of gold causes buyers to go for cheaper imitation jewelry instead. It is very possible to buy real gold without spending a lot of money at a jewelry store. You are able to get gold cheaply in pawn shops or on the Internet.
Don’t have much money? Invest in scrap gold. You can do this over a period of time, say around each pay day, and accumulate a considerable amount of valuable gold within a year or so. However, ensure that you have secure storage for your collection.
If you are not sure of the value of your gold jewelry, you may want to get it appraised. The small investment required will ensure you get what your jewelry is worth. Only use an independent, accredited appraiser to get the most realistic value. If you do want to sell the gold, understand you won’t be offered full value it was appraised for.
Be sure to select carefully when considering taking your gold to a pawn shop or jeweler for sale. You cannot count on these stores to pay the national standard of the day. Stores not inside major shopping malls might have lower rent and overhead, and so can pay you more.
Sell only to gold buyers who are licensed. While you could still get ripped off, a licensed buyer is more likely to be reputable. Many establishments purchase gold, so there is no need to sell yours to the first buyer you deal with.
Use a magnet to determine if an item is made of gold. Precious metals do not respond to magnets. Certain pieces have a clasp made of real gold while the remaining parts are plated. The magnet test is an excellent way to find out.
Remember to research the gold market prior to investing any money. Not everyone who claims to be a gold expert really is. They may just be trying to trick you. Be skeptical of “get rich” schemes. Don’t think of it like a get-rich-quick scheme to avoid false expectations.
Before selling jewelry as scrap, have an appraisal done. This is a good idea if the piece is antique or has an elaborate design. An appraiser will charge you a nominal fee, but it is an expense worth paying if your piece is unique and valuable. They may even give you a reference to a buyer.
Read each form thoroughly when meeting a gold dealer. This business deals with large amounts of money. You need to know what you’re signing. If the terms are not agreeable to you, get ready to move on. At the end of the day you are the one who stands to lose financially.
Gold is often volatile even though it can be a good investment. You will probably observe some fluctuations on the short term but you should not let this stress you. If your stomach can handle the rough ride, you should still protect yourself from losing too much money. Never invest more than a sliver of your total portfolio in gold. Start with investing 5% of your portfolio in gold so you can get a better idea of how this precious metal fluctuates.
Gold jewelry should be separated into different groups based on its karat value before you sell it. The value of gold varies by karats, and weighing your gold together can cheat you out of money. Gold with higher karat value is worth more money.
Know how to test the grade of gold if you are investing in gold. The purity of gold is measured by the karat. A higher number indicates a higher degree of purity and, therefore, a higher price. Never go by the stamp stating karat weight. Knowing how to verify the karat of gold will help you keep from overpaying for bad quality gold.
When you’re selling jewelry for the raw bullion value of the gold in your pieces, make sure to ask about getting back any small gems included in your jewelry. If they are very small, however, they will be difficult to remove. In general, the buyer doesn’t want the stone.
It is impossible to deny the critical role gold has long played as a means of securing and solidifying personal fortunes and even more modest levels of reserves. If you want to get involved with gold markets, you have to do your research. The information in this article should give you a good jumping off point for buying and selling gold.