To add gold to your investment portfolio, there are a few things you must know. It’s not as simple as just diving in head first, but it doesn’t have to be complicated either when you have the necessary information. Read on to learn all the ins and outs of buying and selling gold.
Before you purchase a gold piece, know when it is going to be delivered. If your seller doesn’t offer delivery immediately, you need written confirmation of when to expect your items. The expected delivery date should be noted somewhere. Only complete the order if given this documentation.
Gold Jewelry
The cost of gold may put you off. You do not have to pay full price for gold jewelry if you find that the prices offered by jewelry stores are too expensive. You can buy gold jewelry more cheaply in pawn shops or online.
If you want to invest in gold but do not have much money, think about purchasing scrap. This is easy to do over time, and can lead to an accumulation of real value in the span of a year or two. Ensure that the gold is safely stored and secured at all times.
Melt Value
When selling jewelry, be aware that most gold buyers will only pay you on the melt value. Pawn brokers and private sellers may just want to pay melt value. It may take longer to find the right buyer, but you will get more money this way.
Before selling you gold through the mail, be sure you know what the procedure is for getting your items back and any costs involved in doing so. A lot of companies say they’ll let you ship for free, but to get things back they charge quite a bit. By knowing this information ahead of time, you can prevent unnecessary charges.
Sell gold to buyers that are state licensed to buy gold. While you can still get taken for a ride, licensed buyers tend to be more reliable. There is a lot of competition out there, so you can sell to someone else if you’re not happy with the first offer.
Be careful in the gold market. Markets all have their share of unscrupulous players, but gold is a market that seems to have many. There are lots of people that want to rip you off by not giving you what you’re owed. You have to do your research to keep yourself safe.
Earring backings are often solid gold, even when the earrings are not. Necklace clasps and ring bands are frequently real gold too. Attempt to sell pieces such as these as a “lot” since those pieces are fairly lightweight. A larger profit can be obtained this way as many pieces are being sold in one “lot”.
It is a good idea to check with the Better Business Bureau before you deal with a gold broker. Here, you will find information regarding the business, as well complaints and reviews from people who’ve dealt with them before. Complaints that have been resolved are actually a good thing, so factor those in as well. If the number of complaints is high, it would be a wise decision to do business with a different company instead.
You can still invest in gold without physically owning any. Stocks in gold mining or gold based mutual funds are two such alternatives. Purchasing gold bars and coins means you must have a secure place to store them.
To be a smart investor in gold pieces, learn how to test for the grade. You measure gold purity using karats. The higher the karat, the more the gold is worth. Never go by the stamp stating karat weight. You are less likely to wind up paying a high price for an item of low quality if you understand how to test for the purity of the gold piece.
Identify your goals before investing in gold. Gold is good to have around in a bad economy, but it is volatile. Give yourself the best chance for success by deciding how much risk you are willing to take and what you want to accomplish.
Before you sell gold online, be sure of the current price. You may get a better deal by going to a local dealer. Mailing it can be more convenient; however, it may not be worth the hundreds more that you can earn in person.
Ask about the buyback policies of the dealer you are considering. Some gold buyers may charge premiums and fees to do business. Consider if sending the item by mail or going to a local place is more logical. For your own safety, never take the risk of having the dealer store the gold you buy.
Gold Jewelry
If you are investing out of a sheer love of gold itself, think about purchasing pure gold jewelry. Gold jewelry is bought as both an investment and an accessory in fashion. High end jewelry also increase the value of this type of investment.
Understand how much you should invest in the gold market. Do not expect to get an income from your investment in gold. On top of that, the price is extremely volatile. It only goes up in value when equities devalue. No more than 5 percent of your portfolio should be invested in gold.
Prior to selling your gold, keep an eye on its price. Since gold prices fluctuate often, it’s your call as to when is the opportune moment to sell them. Once you understand the market, you will have a better idea of when to sell. It is worthwhile to monitor things prior to making a sale.
After reading this article, it is time to begin using the knowledge you have gained. Think about everything you have read, and work to apply the information to your own investments. Gold can be a good supplement to your other investment vehicles. Join the gold rush!