What You Have Always Wanted To Know About Gold
Have you ever wanted to invest in the gold market? Gold is one of the most popular commodities in the world. Gold is an important symbol of riches across all cultures. Its value has consistently increased over the past years, making this a very sound investment. Read the following for some tips on investing in the gold market.
If you have a particularly nice piece of jewelry, you may be able to get more money for it as is rather than selling it to someone to melt down. This is particularly true if the item was made by a popular designer. Investigate your options before you just go forward with a sale.
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Comparison shop when selling old gold jewelry. While spot pricing is the national standard, most stores don’t honor it. Stores that are not near shopping malls may have lower overhead and are able to pay more.
When sending off your jewelry, you need to consider the shipping cost to you if you’re not satisfied with the offer given. Many companies will pay for your postage when you send but charge a high price when they return the piece to you. Know what you’re up against before you mail anything away.
If you decide to invest in gold, find out which type of gold is the best investment for you. Most investors buy gold bullion bars or gold coins. This type of gold requires a sizable investment. Gold bars are available in a wide variety of sizes from half an ounce to 400 ounces.
Pick the right gold buyer
Be extra cautious when using a mail-away service for selling your gold. Always buy shipping insurance for your items. Know how long the dealer will hold your pieces before melting them, and know how long you have to accept or reject their offer. And keep an inventory with pictures of all the items you’ve sent.
Keep in mind that buying rare gold coins takes a lot of research, expertise, time, and dedication. Some coins tend to look alike, but they may have very different grades. Minor differences like these can lead to an additional thousands of dollars. Try hiring a type of professional grading service to obtain a certificate of authenticity when buying rare coins. These services judge the physical condition and provide it with a grade.
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.
Do not purchase gold jewelry with the idea that it is a good investment. Because the gold in jewelry is not pure, it is unlikely it will ever be worth its purchase price. A much safer choice for investing in gold is to purchase gold coins, bullion or gold stocks.
Read the terms and conditions of any gold mail-in service. These operations tend to have a lot of fine print, some of which can really work against you if there are any issues down the line. Before choosing this route, read everything you can so that you avoid as many potential pitfalls as possible.
Certificate of authenticity
Get a certificate of authenticity when buying gold jewelry. This is your proof that the piece you have purchased is real, consists of a certain karat count, and has a specific value. This certificate can be used to authenticate your piece for resale or insurance purposes, should you need it.
Investigate your sellers buyback policy. Every buyer has a different fee schedule and the prices may vary widely. Consider if sending the item by mail or going to a local place is more logical. Don’t ever buy gold and then leave it with the seller. Take it home with you at the time of purchase.
What about gold coins?
When buying gold coins, the best deals can be found by sticking to one ounce amounts. The common and popular American Eagle gold coin comes in one-tenth, one-quarter, one-half and full ounce weights. Buying the coins issued in fractional denominations can carry a premium over the gold’s actual spot price.
Avoid buying gold coins that are considered commemorative, collectible, rare or historic for the purposes of investing. Such coins sell at a considerable premium over and above the value of the actual gold they contain. These types of coins are also subject to additional fluctuations in price beyond those dictated by gold’s current market price.
Regardless of what culture you are from, when you talk about gold, people understand its value. In order to make sound decisions about gold investing, you need to learn as much as you can about the market. By reading this article and other helpful resources, you can learn how to get the most value out of your gold investment.