Should you be a serious investor, it is important to include commodities within your portfolio. On top of that, the best commodity out there is gold. Whether working on building your nest egg, or buying gold as an investment, this article provides some valuable information.

Gold fluctuates a lot, so be aware of the purchase price before selling your gold. If you choose to go ahead with the sale, separate different karat items and have them appraised individually. Don’t sell jewelry that’s worth more due to maker or designer.

If you’re selling gold through a mail-in service, do your homework on the company and its policies before you make a commitment. Be certain you have a clear understanding of the timeline involved, and make certain your jewelry is insured. Take a photo of what you mail to battle against disputes down the road.

Melt Value

When selling any gold, you have to decide if it will be as jewelry or for its melt value. You will see that pawn shops and private buyers only pay melt value. It may take longer to find the right buyer, but you will get more money this way.

If you think you’re going to mail off your jewelry, you should see what it’s going to cost to have things mailed back if you don’t like their offer. Many companies offer free shipping; however, they may charge shipping for returns. Make sure you know in advance what you might have to pay to get your jewelry back.

Only sell to buyers that have a state license to buy gold. Licensed buyers are generally more reputable than unlicensed buyers. There are many stores and individual buyers looking to purchase gold, so always know you have multiple options, and never just the first deal that comes up.

Do not discount the value of searching through antique stores or thrift shops for your gold. You can find great bargains if you understand what to look for. Lots of folks donate items or sell them in such venues simply because they lack knowledge of their true value. Reap the benefits from that loss, but only after researching first.

Real Gold

An inexpensive and simple way to see if an item is gold is with a regular household magnet. If the piece is real gold, the magnet will not be attracted to it. Certain pieces have a clasp made of real gold while the remaining parts are plated. This can be a useful method of testing for that.

When at a gold party, talk with the rep about how they make the determination on the karats of the jewelry being sold. In many cases, items are stamped. If there is no stamp, there are different ways to test the gold to ensure it is solid. Acid tests are an easy way to determine value.

You can make money on gold; however, it is a volatile commodity. If you’re not wanting to stomach the ups and downs, then you need to steer clear. If you are able to handle it, then you can still limit the downside risk involved. Only invest a small amount into gold. Invest up to 5 percent for best results.

Divide any gold you plan to sell into groups that contain specific karat values. Separating ensures you get the most money for the karats that you own. The higher the value of the karat, the more valuable your gold is.

Now you should know a little more about gold trading. Use these ideas to improve your investment portfolio, or just to make some money by itself. You can trade gold more confidently after learning this information.