When the recession started, many people looked to investing in gold as a way to weather the tough economic times. There aren’t enough gold investors that are knowledgeable enough about the market, though. The following information will help you learn all you need to know about gold.
When you are buying or selling gold to another person, make sure you are keeping yourself protected agaisnt identity theft. Avoid giving out your personal financial information. This includes bank account numbers, credit card numbers and Social Security numbers. Take special care to not give out this type of information, especially over the phone to people that you don’t know.
Understanding how gold alloy works is important when both buying and selling your gold. Since gold is too soft to be used by itself, it is combined with other metals to form an alloy. The karat system will tell you how much gold is in the alloy. In the United States, jewelry must be at least 10 karats for it be legally allowed to be called “gold jewelry”.
Before taking your gold to sell, research the buyer. Most reputable dealers will be members of the American Numismatic Association. These dealers are held to a higher standard of ethics and must follow certain criteria when purchasing gold from individuals. To ensure you get the most money for your gold, make sure to use a dealer who is part of this association.
Be a student of the gold market. This market is very tricky, as the price of gold is something that changes on a daily basis. What’s a great deal one day could be less than stellar the next. It’s up to you to know what you are getting into so that you can get the most for your buying or selling.
When you plan to buy gold, make sure you look at the spot price. You can find that on a lot of websites, and that can change every day. When going to buy the jewelry, you should not have to pay higher than 8% markup over the spot price. Some dealers are going to try and charge you more, but don’t pay it.
It is important to understand that market before becoming active in it. As with any market, there is unsavory, dishonest people. This is especially true when it comes to precious metals. Many people would like to take advantage of your lack of knowledge on gold. You have to do your research to keep yourself safe.
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.
Look into companies like GoldMoney. This program allows you to purchase gold without taking physical possession of it. You deposit money into an account and they assign you gold that remains in vaults. Do not worry about theft of your gold as it is insured while it is kept in the safe.
Do not expect too much from a gold party. While you will make some money by attending, they are more about having fun with friends or family. Expect to reap about 80 percent of the actual value of your gold. If you are looking to get more than that, consider dealing with a jeweler or other gold dealer.
How heavy your gold is will determine how much money you get for each piece. However, some dealers are not very reputable and may try to pay you less than you are owed. Watch out for anyone who weighs your gold by the pennyweight but tries to pay you for grams instead.
When you buy some gold jewelry for another person, make sure they have a refund policy. There are time where you may have to return the jewelry. If that happens, you want to be able to send the jewelry back and get your money back as well.
Gold prices have grown 400 percent in the previous 10 years, which is terrific for those who own this commodity. The value of the dollar directly correlates the value of gold. Higher gold prices go hand in hand with a weak dollar.
Know the gold market before selling or buying gold. Much like buying and selling stock, you should always buy low and sell high. The gold market varies daily just like the stock market, so it is important to follow the trends and sell your gold when it is at its highest sales price.
The gold market is a profitable way to invest, and therefore many people are interested in getting involved. All too often, though, people don’t have sufficient knowledge to successfully invest in gold. Hopefully, this article has solutions to the problem for those who want to learn more.