What You Probably Did Not Know About Gold | prettifyup.com

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What You Probably Did Not Know About Gold

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Gold investing is very popular among investors. Many people trust this precious metal to be a good hedge against inflation. Gold has made some investors very rich because they made the right market decisions at the right time. If you want to find out what gold investing is all about, read the following article for some helpful tips.

Before selling your gold to an establishment, make sure that they are a reputable seller. Check with your Better Business Bureau to make sure that they have given fair prices to people. You don’t want to sell your gold to someone who will cheat you out of the precious gold you’re selling.

All investments come with a certain amount of risk, and gold is no different. To help limit your risk when selling gold, ask for referrals from friends or family members who have sold gold in the past. They may be able to steer you toward a reputable gold buyer.

Know what you have when it comes to gold. Everything that appears to be gold isn’t worth its own weight in it. Usually, there are other metals mixed with gold for stability. This will lower it’s worth. So, too, can items that are simply gold plated. If you don’t know how much your gold is worth, then it would be wise for someone to appraise its worth if you intend on selling it.

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 are selling gold of different karats, have them weighed separately. This is because 24 karat gold has a higher value than 18 or 14 karat gold. By having them all weighed separately you will get a fair price. If they are all weighed together, you will be given the total value of the lowest karat.

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.

When you choose to pursue investing in gold, you must take a long-term approach. In essence, don’t buy gold at the highest price. You should actually wait until prices drop to make a smart investment. Buying gold steadily over time as the value rises and falls actually give you a better return over time.

Keep in mind that most gold dealers are not interested in plated or gold filled pieces. They want the pieces to melt down, and they will only pay you based on the melt down value. Plated and gold filled pieces can’t really be melted down for any profit, so they will usually turn those pieces away.

Whether you are buying or selling gold, be cautious about potential dealers. The more informed you are, the less the chance that you will be taken advantage of. Unscrupulous dealers will try to trick gold seller and potential investors. Understand any fees or premiums attached to your transaction and know the per ounce price of gold.

Understand that when buying gold coins, dealers will charge a commission that will increase the amount you’re paying to above the gold spot amount. In this case, it pays to shop around to find a reputable dealer with the lowest commission. However, you can expect most retail commissions for one ounce American or Canadian coins to be around five or six percent.

Take pictures of your gold before letting a prospective buyer see it. Ask the buyer if there are any replacement value guarantees if the gold suddenly disappears or is stolen while the buyer has possession of it. Getting everything in writing will protect you if an issue arises.

You only want to purchase gold that has always been stored at a depository. Otherwise, the weight and purity is going to be called into question. You don’t want to have to worry about this. Also, if you’re not going to store your gold on your own, then you need to keep the gold at a depository as well.

Be sure to photograph jewelry before mailing it to a buyer. That will prove you had each piece and shipped it. Make sure to capture any identifiable marks in each piece. For example, take note to show engravings, scrollwork, or any other unique quality.

Shop around for the best dealer for you. Every dealer will offer something different. In fact, you could see price differences in the hundreds of dollars in some instances. That’s definitely worth the exploring prior to any decisions being made. Even consider leaving your local area as prices could be better in a different setting.

Before mailing any items to a gold dealer, get an appraisal of each piece of gold you are sending. This will act as both a written verification of the items shipped as well as the value of each item that is enclosed. Furnish a copy of the appraisal to the dealer as well as keeping a copy of each appraiser for yourself.

Before deciding to sell your jewelry, think carefully. Look at each piece and make certain that you truly do want to sell each piece. This will help ensure that the emotional value of the piece is not worth more than the actual cash value you receive for selling the gold.

Learning how to be a smart investor in gold is not hard. However, it does take full understanding of the market in order to make this profitable for you. Good investing techniques take practice and experience. Use what you have learned in this article to give yourself a good start in your gold investment.

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