Have you ever wanted to invest in the gold market? Gold is one of the most popular commodities in the world. Gold is an important symbol of riches across all cultures. Its value has consistently increased over the past years, making this a very sound investment. Read the following for some tips on investing in the gold market.
Bullion bars are an excellent investment. The weight of these bars vary. They can be as small as half an ounce or as large as 400 ounces. If the 400-ounce bars interest you, you’re going to have a hard time finding them.
When you purchase gold, it’s important to set a fairly stringent schedule for delivery of your metal. If a seller gives you anything other than immediate delivery, you need to have some kind of written contract or guarantee when your pieces are arriving. The confirmation should include an estimate of the delivery date. Don’t go through with the order if they can’t provide you with the delivery date in writing.
If a deal seems too good to be true, then it probably is. Be leery of people who are selling their gold for way below the going rate. Chances are probably good that it is gold plated or brass. Even if it is stamped, it is always best to have it tested before you buy it.
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.
If you are thinking about becoming a buyer or seller of gold, make sure you are legal! In the United States, you must have a license to purchase, sell or trade gold in any quantities on a regular basis. Check with your city or town about how to become licensed, and then enjoy your new entitlement to dealing in gold.
Have your gold weighed out in the open, in front of you. If a dealer wants to take your piece to the back of the store, beware. Some less than ethical dealers will use a bait and switch, or they will tell you the pieces weigh less than they actually do. This means less money in your pocket, and it amounts to an unfair deal.
While some people like the idea of purchasing gold in coins or bars, the cost is very high. It is also not advisable to keep valuable coins or bullion in your possession unless you have a very secure safe. Having personal possession of a few gold coins is only a good idea if you know you can keep them secure.
Do not sell your gold at a gold party. Although these parties are fun, sellers usually net less than 80 percent of the value of their gold at these parties. To get the most bang for your buck, find a reputable dealer that specializes in buying and selling gold.
Consider the long-term value of gold as an investment, if you are in the financial position to do so. Rather than buying low and selling as soon as the price increases, hold onto your gold. Over the years your wealth will accumulate for retirement or give you something precious to leave to your children.
You can sell gold by mailing it to a buyer. Lots of sellers prefer this process, as it is easy. You ship your jewelry in a prepaid envelope, and then you receive a check. But, keep in mind that such enterprises tend to offer lower prices than some competitors. It’s possible that you might receive an offer that is up to 30 percent less than what you receive from another party.
Understand fees and commissions when buying investment gold pieces. Most reputable dealers will charge between five and seven percent. You need to realize this cost incurred to make sure you are still getting a good deal on the pieces you are buying, based on their true value at the time of purchase.
The price of gold has increased 400 percent over the past 10 years, and that is great for gold owners. Investing in gold depends on how good the dollar is doing. In general, when the dollar is weaker, gold prices tend to rise.
You need to know how to test the grade of the gold you buy. Gold’s purity is identified in karats. As you higher in the number of karats, the more valuable the piece of gold is due to its purity. You can’t always trust a karat stamp. When you know how to determine a gold item’s purity, you will be assured that you won’t overpay for low quality.
Regardless of what culture you are from, when you talk about gold, people understand its value. In order to make sound decisions about gold investing, you need to learn as much as you can about the market. By reading this article and other helpful resources, you can learn how to get the most value out of your gold investment.