Gold investing has become increasingly popular after the recent economic downturn. You may feel that investing in gold is a smart thing to do but lack the knowledge of how to do it. Eliminate your doubts with the tips below.
Be sure you research a company before sending them gold in the mail. Be sure you figure out when you’ll get sent a payment, and be sure things are insured too. Take a photo of all the items you are sending so there will be no questions later.
When you buy some gold jewelry for another person, make sure they have a refund policy. You have no idea if the person for whom you are purchasing the piece will like it or if it will fit. If that happens, you want to be able to take the piece back for a refund.
If you will be selling your gold, shop around for best prices. Many stores do not pay the going rate for gold. The overhead of the store involved may determine how much or little they are able to offer.
Melt Value
When it comes time to sell your gold, figure out if you would like to sell it for its melt value or simply as a piece. Most private sellers and pawn brokers are only willing to pay melt value for gold jewelry. However, if you are patient, you will find a buyer who is willing to pay top dollar for your jewelry.
When you plan to buy gold, make sure you look at the spot price. The spot price is readily found on the Internet. When purchasing, don’t pay greater than 8% markup above the spot price. Occasionally an unethical dealer may try to overcharge their customers.
Get a good grasp on what you own. Not all gold piece are worth their weight in gold. Usually, there are other metals mixed with gold for stability. This reduces its price though. So can gold-plating. If you’re not sure about the value of your items, you should have them appraised before you try to sell.
You must always perform your own analysis before making any investments in the gold market. Some people swear they’re market experts and attempt to get you to invest with them. However, you need to be very careful when it comes to promises about making you rich. Don’t overestimate how quickly gold will get you rich.
Fine Print
Figure out what all of the fine print means when you’re working with a sales contract. If you choose to sell your gold through one of the many mail-in gold purchasers, carefully read the fine print before selling your gold. This will show the commission and fees associated with your transaction.
Mailing away your gold to a buyer is always an option. Sellers often like the simplicity of this process. You get a mailer that is prepaid, place jewelry inside and send it, and you get a check. Although this method of selling your gold is convenient, you might not get top dollar for your gold. Sometimes, you can obtain 30% less for the item, so be careful.
The world is in a financial tizzy, and the popularity of gold is one of the results. Now that you have a basic understanding about buying and selling gold, apply it to your investments. Use the above advice to have the knowledge and confidence you need.