Lots of people love gold but don’t know a lot about it. Not knowing all there is to know about it could really hurt someone. These tips will help you learn more about gold and the market for it.
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.
Steer clear of any “act now” offers. The gold industry is filled with less than reputable types that want you to take immediate action. Why? Because typically, they’ll get the better end of the deal because you didn’t read through the fine print. Instead, walk away from these types of deals and be patient in how you approach the market.
Understanding how gold is weighed can ensure that you don’t get ripped off when selling your gold to a dealer. Gold can be weighed in Troy ounces, pennyweight, or grams. The most important thing is to make sure that whatever system the buyer is using to weigh your gold is the same one they’re calculating the payment with.
Those investing in gold bullion coins or collector coins need to know how their prices work differ before they buy or sell. The prices of bullion coins are determined by the daily prices of gold, while collector coins carry significant collector premiums that are determined via historical supply and demand. Some coins may be easily found in circulated condition for modest premiums over their own bullion content, but those exact coins in superb condition may fetch a higher value that is several thousand dollars above their melt value.
Take your old gold that you want to sell to a number of different gold-buying companies before settling on one. Even though the market “spot” gold price is the national standard, not all stores will pay it. Stores not inside major shopping malls might have lower rent and overhead, and so can pay you more.
Once you decide to sell your gold, start your search with local dealers. Go into a store and get a ballpark figure for your pieces. From there, you can begin checking online and in other shops to see where you can get the most bang for your buck. Get at least four to five quotes before you go forward with a sale.
All investments come with a certain amount of risk, and gold is no different. To help limit your risk when selling gold, ask for referrals from friends or family members who have sold gold in the past. They may be able to steer you toward a reputable gold buyer.
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.
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.
Prior to selling gold, make sure you separate it by karat weight. Don’t allow the dealer to rip you off by pricing all the gold at the least pure karat weight. This will cheat you out of money. Instead, separate each karat weight before going to the dealer.
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.
If you are selling gold jewelry that is covered with other stones, never leave the gold dealer without those stones on you. Some shady dealers will try and pocket those gems so that they can sell them elsewhere. Even if you don’t hink they’re worth anything, it’s best to get them before leaving.
Read the terms and conditions of any gold mail-in service. These operations tend to have a lot of fine print, some of which can really work against you if there are any issues down the line. Before choosing this route, read everything you can so that you avoid as many potential pitfalls as possible.
As this article said in the beginning, no matter what people think of gold, they rarely know much about it. After reading this article, you should know more. Take this knowledge and use it to help you make wise gold choices.