Gold has always been a prized possession. There are few things that have been treasured as much as gold. Gold is universally recognized as a valuable commodity and it often given as a token of affection. If you are looking to buy gold, here are some tips to keep in mind.
Have an understanding of the current market value of gold before you sell it. You can call a jewelry store for this information. Gold value changes often, sometimes from day to day, and you want to make sure your buyer is offering you a fair price for your pieces, based on current market value.
When you go to sell your gold, make sure your expectations are not too high and bring your government-issued identification. On average, gold dealers pay between 70 and 80 percent of the actual value. The law requires that dealers ask sellers for identification when buying gold to aid police in their investigations about stolen property.
You may shy away due to gold’s price, which may make you go for gold-filled or gold-plated jewelry instead. You don’t have to spend a mint at a jewelry store, though. You can get gold jewelry cheaper online or in pawn shops.
Anything gold is able to be sold. It may consist of decorative items, gold table ware, old items of jewelry and so on. It doesn’t have to be 24 karat either. It may just be plated or partially pure. You are sure to turn a decent profit.
Know what you are working with. Not all that looks as if it’s real gold is as valuable as the real thing. Gold is mixed with other metals for strength. This reduces its price though. Also, some items may only be gold plated. If you are unsure of what you have, you may want to get it appraised prior to going to sell it.
You don’t have to have gold in hand in order to invest it. For example, many people purchase investments in gold mining corporations and mutual funds primarily made up of precious metals. Before you buy bars and coins, you must also consider how much it will cost to store your gold.
Know going into any gold buyer that you won’t get the current daily rate for the price of your gold. There are all sorts of fees that come into play that will affect your final return. The goal is to find a company that gives you the best deal out there. Do a little shopping before settling.
You must understand what is meant by a karat when you are buying or selling gold. Gold is a relatively soft metal so it is normally mixed with other metals to improve durability. A karat is the measure of how much of your metal is gold. Twenty-four karat is almost pure gold while ten karat is about half gold.
When you are selling gold,make sure you separate the pieces into similar karat groups. Separating ensures you get the most money for the karats that you own. The higher the gold content, the better the price.
Investing in gold adds a degree of stability to your investment portfolio not available from most other assets. While the price of gold has fluctuated over the years, it has stood the test of time through economic crises and inflation. Gold’s intrinsic value provides a solid basis for any portfolio.
Don’t be afraid to negotiate a little bit with your gold dealer before selling or buying. There’s typically a little wiggle room in the prices that are offered to you, so take advantage of it. This is a major advantage of a face-to-face sale over one that’s done over the Internet.
A popular method of buying gold is in the form of coins. In the U.S, you can purchase the Amercan Eagle, American Buffalo and St. Gauden’s. These can be easily kept in your safe at home or in your safe deposit box at the bank. These are fun to look at and they hold their value well.
If you’re looking to place money in the gold market but haven’t got much to invest, it is not a problem. Just start small. When you are able to spend the extra money, pick up small coins and jewelry. You will build a collection of gold by doing this.
If you want to make money if the equity market goes up, your best bet is to invest in shares of gold mining companies. if you want to make money when the equity market goes down, you are better off investing in physical gold instead. Put money in both if you think it can turn a profit!
Get a real idea of what you’ve got prior to a sale. Yes, reputable gold dealers will give you need to know information like the karat weights of what you have. But they aren’t in the business of giving you intel on whether they are offering a good deal. That’s up to you to figure out.
Never invest money into the gold market which you need for something else. It is best to pay off your bills and only use extra money for your investments. If you invest money you need for something else and lose it, you’ll be in real trouble, so don’t risk it.
Don’t fall for shady promotional tactics. The gold industry is full of big promises and over-the-top promotional offers. Nine times out of ten, those deals are way too good to be true. There’s usually a catch, and there’s no doubt it’ll favor the dealer. Instead look for a reputable company that seems fair in their dealings.
Now that you know a bit more about buying gold, take what you have learned and start your gold collection today. You can start off small by just buying small, inexpensive pieces of jewelry to wear. You can also invest in gold coins or ingots. When it comes to investing in gold, there is a world of choices.