After troubles in economies around the world as of late, investments in gold have become very popular. You may have the desire to invest but lack the necessary experience to get into commodities trading. Read on to learn some specific tips on gold investing.
When entering the gold market you will want to have an idea on how the precious metals prices are determined. Precious metal prices vary from day to day and it’s best to check the price before selling or buying gold. Gold pieces with fractions of an ounce will command higher prices than pieces weighing one ounce.
Make sure you research any gold broker you do business with. You want to work with a reputable gold broker. Read online reviews, check with the BBB, and see how the dealers resolve complaints. Also get more than one offer for your gold. This will ensure you get the best possible price.
When you first check out gold jewelry, you may be in for a bit of sticker shock and decide to buy gold-plated jewelry, instead. You do not have to pay full price for gold jewelry if you find that the prices offered by jewelry stores are too expensive. Check pawn shops and online websites for cheaper gold prices.
Know the current price per ounce of gold before selling your pieces. This can help you discern whether you’re being offered a good price or not. Many gold dealers will pay market value; however, some dealers try to get your gold cheap.
When buying gold jewelry as a gift, make sure that the return policy is sound. It is impossible to tell if a jewelry item will be well liked or suitable. If that happens then you’re going to want to return it and get your money back.
If you have no idea what your gold might be worth, than an appraisal is a good idea. It costs a bit of money, but you’ll have a good idea of what your gold is worth. Make sure that you get a truly realistic value from an appraiser that is accredited. If you do want to sell the gold, understand you won’t be offered full value it was appraised for.
Understand what you really have. Just because something looks like gold, that doesn’t mean it’s worth the full weight in gold. Some jewelry is a composite of a number of different metals. The price will be affected by this, often lowering it. So can gold-plating. Have your pieces appraised before sale to determine their value.
When you attempt to sell gold, make sure you know the current market prices. You should see if you can figure out what people are selling pieces like yours for as well. This lets you determine a fair market value starting price point. Begin the negotiations by asking for more than you expect to receive.
Use a magnet if you want a cost-effective way to determine whether or not the precious metal is real. Precious metals like gold are not going to be attracted to a magnet. Often the clasp of a piece is real gold, while the rest of the piece is just plated. A magnet is an easy way to test.
Earring backs are often solid gold when the earring isn’t. Ring bands and the clasps of necklaces usually are, too. Because each piece does not weigh much, consider selling these as a group. You may get more money this way.
Check Better Business Bureau ratings for gold dealers and jewelry stores before deciding where you want to sell your pieces. It has basic company information on them, along with complaints and reviews from those that have dealt with them. The key thing to look for is how complaints against the business were resolved. If the number of complaints is high, it would be a wise decision to do business with a different company instead.
When negotiating with the dealer, be sure to read everything with a fine tooth comb. This is not a small-change type of business; there is big money involved. Understand precisely what you are asked to sign. If you’re not happy with the specific terms, then you need to keep moving along. It is worth it, sometimes, to protect your finances.
Before you buy gold, know the dealer. Call the Better Business Bureau to make sure dealers are reputable. That way, you can learn about any complaints made about the company. If complaints have been filed, use another dealer.
When you’re buying and selling gold, especially jewelry, knowing how to determine grade is very important. The purity of golds is measured by karats. Higher karats include purer, more expensive gold. You should not just rely on the karat stamp. Understanding how you can test gold’s purity will help ensure you never overpay.
A way to get gold at a great price is to simply ask your relatives if they want to sell broken gold jewelry. Get a decent scale for jewelry, weigh the gold carefully, and you’re going to pay your relatives a good price, Make it higher than a pawnshop might pay and then you’re going to make money too.
In these tough economic times, gold looks more and more like an investment you can’t live without. Gold thrives in tough economic climates, which looks to be the case today. Now that you have a basic understanding about buying and selling gold, apply it to your investments. Apply what you have learned in this article to be as gold-savvy as you can.