If you are a serious investor, then you need to know the basics about gold investment. Diversity is key, and gold can help you balance out your portfolio. What is a good place to start? You have a lot of choices, and that can be too much. Read on to simplify the entire process and get started with gold investment basics.
If you have a nice gold piece, consider selling it privately rather than through a gold purchasing agency or jewelry store. Many companies that are in business to buy gold will only buy it to melt and sell, meaning they will pay only for the weight of the gold. An individual who likes your piece might be willing to pay a higher price tag, because they are likely to keep and enjoy the piece.
Before attending a gold party, separate your jewelry by karat weight. Some buyers will try to weigh all of your pieces together, and then pay you based on the lowest karat weight among them. This amounts to less money in your pocket, meaning you have made an unfair sale.
Try to only buy and sell your gold to certain dealers that are recognized through official gold and money associations. These dealers must follow strict guidelines under these organizations to ensure that you get fair compensation or quality pieces. One such well-known organization is the ANA or American Numismatic Association.
Knowing the current market value of gold is important prior to selling or buying it. This way you will know if a dealer is offering you the proper amount for your items. Most dealers are honest and stick close to market value, but a minority try to rip desperate people off by low-balling their offers.
Avoid selling pieces whose worth is more than just the weight of the gold. The value of antique jewelry and rare coins can far outweigh the value of the gold. Also avoid selling pieces that are artistically crafted, jewelry that has gems and anything with sentimental value. The gold will be melted down before it is sold.
Whenever you buy gold jewelry on the behalf of another person, make sure that it can be returned. You’re not going to be sure about the jewelry fitting or whether or not a person actually likes the piece. If that happens then you’re going to want to return it and get your money back.
Do not go to a pawn shop if you have gold to sell. You will not get as much for your gold as you would if you went to a gold dealer. A pawn shop will try to give you the minimum amount so they can make the maximum profit.
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.
Know what you have. Some items are worth way more than the actual price of the gold they are made from. This is especially true for antique coins or jewelry. Oftentimes gold jewelry features highly sought after gems in the setting too. That could make the item a lot more valuable.
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.
When dealing with gold commodities, proceed with caution. Any market has its bad companies, but the gold market is notorious for having a lot of them. Gold companies will often shortchange you when offering a price for your gold. Research gold and gold companies before trading.
If you are interested in reaping the benefits of selling gold but do not have any gold to sell yourself, consider organizing a gold party. This is a party where you invite your friends and family to sell their gold pieces. You invite an appraiser to make the purchases, and you receive proceeds from the profits earned.
Before going to a gold party, find out which company will be buying your jewelry. Research the company ahead of time by taking a look at their website and finding out how long they have been in business. You can also check the Better Business Bureau to see if they are on there or have any reviews.
If you plan on buying and selling gold often instead of making a long-term investment, consider buying GoldMoney or gold certificates from the Perth Mint. These are highly liquid forms of gold investment. The benefit is that you don’t have to worry about storing, insuring or mailing bulky gold coins and bars.
If your plan is to invest a large amount in gold, it is better than you invest it in physical gold instead of ETFs. The holding costs end up being cheaper than those of ETFs when you have higher amounts of money invested, plus the longer you hold onto it, the more you save.
Beware of gold selling expos. These expos create a sense of urgency and you may end up getting a lot less for your gold than you would receive by selling to a local dealer. Many people find out that they lose approximately one third of the value of their gold by selling at an expo.
When selling gold jewelry, it is important to know the karat of your gold. One way to easily identify your karat is by visually inspecting each piece of jewelry. Each piece will be stamped verifying the karat of the gold. Additionally, if you have an older piece that is not stamped, have it appraised before selling.
Learning about investing will help you make sound decisions. Having read this article, you can now make a smart choice. Remember the advice shared, and use it to help you move in the proper direction.