Wise investors have always kept gold in mind as a solid method of safeguarding wealth, but interest in the commodity has truly boomed of late. However, far too many investors lack the essential understanding of gold markets make smart decisions in terms of buying and selling. Keep reading to ensure that you are not among the latter group.
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.
Really look into the reputation of the dealer that you are considering using. Because gold is such a high value commodity, there are a few shady operations out there that are looking to get the best of you. It’s your job to make sure that doesn’t happen. Research the companies fully.
If you are interested in trying gold as a commodity, but you are short on capital for investment, start out with buying scrap. If you do this on a regular basis your collection would grow quite quickly. Protect your gold until you can sell it.
Before selling your old and broken gold items for cash, make it a point to visit at least 3 or 4 buyers. The current spot price for gold is considered as a national standard but not all buyers will offer this price. Stores that are not near shopping malls may have lower overhead and are able to pay more.
When it comes to selling gold, you must decide if you are going to sell it just for its melt value or as a jewelry piece. Most private sellers and pawn brokers are only willing to pay melt value for gold jewelry. Never let this dissuade you, however, as you are sure to locate an appropriate buyer eventually.
Always check the daily spot price before you buy gold. You can see it on various sites and it usually changes every day. You shouldn’t pay more than 8 percent over the spot price. Knowing the value of your gold will keep you from getting ripped off.
If you are planning on buying gold for historic value, make sure you understand the true value of the piece. Some are worth no more than their melt price. If you are buying for your own collection, that might be okay. If you are buying as an investment, you should look for pieces that are worth more, meaning it’s often advisable to stay away from any mention of historic value.
Be very wary of anyone that claims to be able to offer you rare and valuable coins at dropdown prices. The reality is that no one is going to give you something for nothing. The coins you are being offered are probably not as valuable as they are making them out to be.
Talk with a gold expert on how they go about attaching a price to a piece of gold, so you know how much a karat is worth. Sometimes there is a stamp. However, you may see no sign at all but there are ways to determine its value. Dealers using an acid test may be newcomers, as this is a very basic test.
Make sure to conduct independent research prior to investing any money. Some people may try to trick you so you invest money with their company. But, be weary about get rich-quick schemes. You will not get rich quick with gold. It is a long term investment.
Before you sell your scrap gold to a dealer at rock-bottom prices, make sure that it isn’t worth more to you the way it is. Some things that lay people think aren’t good enough for anything other than scrap can turn out to be very valuable. See an appraiser to be sure.
You can make gold investments without owning gold. You can buy gold shares in an ETF, a mutual fund with a focus on gold, or in gold mining equities. Buying gold bars or coins involves considerable storage. Remember you must keep these things in a safe place.
If you are interested in selling your gold, you may come across an advertisement stating that a buyer will be at a local hotel near you. In many cases, these people are interested in more than just gold, so if you have other items of value, you should be able to unload them as well. However, you won’t command a very high price for your gold from these individuals, and they will often try to pressure you into the sale.
Gold has long been part of every astute investor’s financial mix, but interest among a wide range of individuals has grown exponentially in the aftermath of the financial turmoil of recent years. The lynchpin of sound gold investing is knowledge, which takes time and effort to acquire. With any luck, the above article has been a helpful tool for accomplishing that task.