Gold’s value changes often, but always goes up. The market is always welcoming to precious metals such as gold. When financial times are tough, the value can spike like never before. Keep reading to learn how you can take advantage of the gold market.
Before buying or selling gold, look into the market price for gold for the day. There are daily fluctuations on price for precious metals, so it’s important for you to know what the current going rate is. This will help you understand whether the dealer is overpriced or fair in the offers made to you.
Prior to buying or selling any gold, be sure you truly understand how gold pricing works. Daily fluctuations are the norm, so you must be current on the spot price. You must to pay a premium to the melt values if you’re buying less than one ounce pieces.
When purchasing gold jewelry, ask the jeweler for a certificate of authenticity. This certificate is proof that you are purchasing a good piece of jewelry made of solid cold. Be sure the certificate indicates the price of the jewelry. Should you ever decide to sell your jewelry, this will be of help.
Protect yourself from dishonest people who are trying to steal your identity. One way to ensure that you are protected is to purchase gold locally from a reputable dealer. Never give your personal information out over the phone, including your Social Security number and credit card information, unless you are certain that it is a reputable company.
Keep in mind that buying rare gold coins takes a lot of research, expertise, time, and dedication. Some coins tend to look alike, but they may have very different grades. Minor differences like these can lead to an additional thousands of dollars. Try hiring a type of professional grading service to obtain a certificate of authenticity when buying rare coins. These services judge the physical condition and provide it with a grade.
Remember that you can lose money when you buy gold. Buying gold is an investment and like all investments, its value can actually decrease as well as increase. Therefore, it is important to make sure that you do not invest more than you can comfortably afford to lose in the precious metal.
Remember that gold is not the only type of precious metal that you can invest your money in. Sometimes silver and palladium can actually be better investment that gold. In addition, you can also buy copper bullion bars and copper coins. Therefore, do not think that gold is your only option if you are looking to invest in metal.
You can use a magnet to test precious metal inexpensively. Precious metals do not respond to magnets. The clasp may be solid gold, but it’s possible that the piece is almost entirely gold-plated. The magnet test is simple and effective for this purpose.
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.
When it comes to selling gold jewelry, you should know exactly what it is that you are selling. Many pieces are worth more when they’re left as is rather than melted down. If your pieces come from famous makers or designer lines, they may carry more value for the buyer over what kind of gold they’re made of.
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.
Do not buy gold coins that are for sale at the pawn shops in your area. Chances are you will pay a lot more for them here than you would anywhere else. It is best to look for a reputable gold dealer to do business with, so you know you are getting the best deal.
You should guard against buying too much gold as an investor. You will not earn any income from your gold investment like you do with stocks and bonds. In addition, gold’s price can be volatile. The value only rises when equities decline in price. No more than approximately 5-10 percent of your portfolio should be invested in gold.
You are probably aware that many currencies used to be backed by gold. What that means is that you need to understand how the price of gold changes and how to leverage the gold market to meet your particular needs. Use what you’ve just learned to find your pot of gold.