Since it’s discovery a few millenia ago, gold has been a sought after commodity with intrinsic value. Not everyone knows how to acquire gold, even though we all love it. If you are thinking of investing in gold, continue reading to gain insider’s knowledge to the gold investment market.
When selling gold, sell to reputable buyers. You are able to find out more about their reputations with the local BBB and through online reviews. A good buyer is going to give you a good price, and will provide you with superior customer service too. This can help you to be protected when dealing with gold.
Get a good education in precious metal pricing before you try to buy or sell gold. The values of precious metals fluctuate daily, so be certain you know the spot price before any transaction. Gold pieces with fractions of an ounce will command higher prices than pieces weighing one ounce.
Many people don’t know that a magnet can be used to test whether something is made of gold or some other type of metal that is precious. Precious metals that are true like gold aren’t going to be magnetized. Sometimes only the clasp is solid but the rest is plated. The magnet test is simple and effective for this purpose.
Talk to someone at any gold party to determine how they decide a piece’s karats. Many items are stamped. Other times, though, there are no outward signs, and therefore representatives rely on other techniques. One method that can be used is the acid test.
Research how the gold market is doing before investing. Some people will claim to be experts in the field. When they make huge promises, they can’t keep them. You will certainly avoid the getting rich quick way of thinking if you have realistic expectations.
Carefully read and check the small print in the sales contract. If you use any of the abundant mail-in gold buyers, study the fine print carefully before making the sale. This way, you will know the exact amount of the fees and commissions you will be paying.
You can actually sell your gold through the mail! Although this process may be easier, you may not earn as much money. You put jewelry in a prepaid envelope and you’ll eventually get a check. However, know that these buyers don’t pay what you might get somewhere else. In some cases, you could get about 30 percent less for an item, so just be aware.
Gold is usually a safe investment but this precious metal can also be volatile. If you can’t handle the fluctuations, avoid this market. If you have the fortitude, still limit your downside risk. Do not invest more than a tiny percentage of your portfolio in gold. Limiting gold to five percent or less of your total investment is a good idea.
A good way to get good value out of gold is to see if any relatives have broken items that they no longer want. Invest in a good jewelry scale, weigh the gold and you can pay your relatives more than a pawnshop would pay and still be able to make money in the deal.
Do a little price verification before you set your heart on selling your gold via an online service. Local dealers often offer better pricing. While simply dropping the gold in a box and shipping it because you’re short on time can seem convenient, if you can make a lot more money locally, you should.
It is obvious that gold is not only a prized possession, but also a valuable commodity that can easily be traded. It makes sense to invest in gold because it retains its value and increases in value as time goes on. This article has hopefully given you an excellent start on your journey to becoming a savvy, well-informed gold investor.