For centuries upon centuries, the allure of gold has attracted people. Even today, many people find gold to be one of the most attractive investments around. If you are thinking about putting your money into gold, you need to make sure that you understand the risks involved. Keep reading to learn more.
If you think your gold has high value, have it appraised before going to make a sale. An appraiser is more likely to give you an accurate value for your pieces, while a seller might low ball you to get a better price. Bring your appraisal certificate with you when selling to ensure you’re making a fair deal.
When you are buying or selling gold to another person, make sure you are keeping yourself protected agaisnt identity theft. Avoid giving out your personal financial information. This includes bank account numbers, credit card numbers and Social Security numbers. Take special care to not give out this type of information, especially over the phone to people that you don’t know.
You may think that solid gold jewelry is too expensive and choose to purchase gold plated or filled jewelry. You don’t have to spend a fortune buying jewelry at a specialized shop. You can get gold jewelry cheaper online or in pawn shops.
Do not allow different carats of gold to be weighed together. This is because dealers will base the price on the lowest carat gold. Each carat of gold is mixed with 10 parts of other alloys; thus, a 10 carat weight gold ring will be worth much less than an 18 carat gold ring.
If you’re selling gold jewelry, make sure you know about karats. Pure gold is very soft, so it’s mixed with other metals for color and durability. The FTC or Federal Trade Commission requires that all sold U.S. gold jewelry must describe the alloy’s karat fineness. A single karat equals 1/24 of pure gold via weight. For instance, 14 karats jewelry is 14 parts gold and 10 parts different metals. Jewelry can’t be sold as “gold jewelry” if it’s less than 10 karats.
Before you sell gold jewelry for its scrap value, have it professionally appraised. Jewelry that is hand crafted and unique may be worth more sold as jewelry than as scrap gold. An appraiser will charge you a nominal fee, but it is an expense worth paying if your piece is unique and valuable. Appraisers might be aware of someone that wants to purchase your jewelry.
If the buyer of your gold does not ask to see your government issued ID, you may want to think twice about doing business with them. Gold buyers are required by law to see your ID and record your information. This requirement helps recover stolen property and prevents money laundering.
To benefit from the upside potential in gold, consider gold index funds. They are easily traded on the exchanges. For instance, the CBOE Gold Index roughly tracks the price of gold, both up and down, by trading gold mining companies. There exchange traded funds that trade on gold futures contracts, but those tend to be quite volatile.
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.
If you are thinking about selling gold on the Internet, check the prices several times prior to proceeding. A shop in your area may pay you more for your pieces.Alth It may be handy to mail your gold, but it could cost you a great deal of money.
Buying gold from individuals is a nice way to get a good deal. However, you must be aware of the risks involved in this purchasing method. So, it’s key to ask for a coin appraisal. If you come across low prices, make sure the item is valuable first by having it appraised by a professional.
If investing in gold is new to you, keep your strategy simple. Steer clear of things such as gold futures. They are volatile and complex. You can sometimes lose money pretty quickly if you’re not sure about your moves. Do not tackle these investments if you do not know what you are doing.
Do not immediately discount pawn shops as a place to sell your gold. They will often buy pieces that other stores do not want to buy because they are not always looking to buy simply to melt a piece down. You can also haggle prices in a pawn shop, meaning you might get a better deal than you expected.
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!
The premium you pay for purchasing gold coins should not exceed eight percent. A five percent markup is possible with certain dealers, especially if you buy a large quantity of gold at once. Commemorative coins, proof coins and coins with historical value are rarely worth the premium so stick to buying regular gold coins.
Another choice you have for investing in gold are historic gold coins. This strategy merges the value of gold with the collector’s value of each coin as well. Some coins are more rare and are worth more. So, you can make things a little interesting by investing in this manner as well.
If you know what you are doing, an investment in gold can be a sensible part of your portfolio. However, too many people let themselves become seduced by the thought of owning gold, and do not make wise investments. Use the advice from this article to make wise investments in gold.