If you are a serious investor, then you need to know the basics about gold investment. Diversification is a wise strategy, especially when your portfolio includes some amount of gold. But, where to start? There a few things to learn, but it is not rocket science. Read on to simplify the entire process and get started with gold investment basics.
Get a value from a few buyers before selling your goal. There are many places where you can buy and sell gold, and they all use different metrics to decide on price. Getting multiple estimates gives you a better idea of the prevailing market price, which prevents you from getting ripped off.
Understand the spot price of gold before selling any. If you decide to sell your gold, pieces with different karat values should be weighed and valued separately. A designer piece, however, shouldn’t be sold because the item as a whole could be worth more than just the gold.
Only sell to reputable buyers. Check the reputation using the BBB and online reviews. A legit buyer will offer a fair amount for the gold you have. This extra step makes sure that you are covered and paid appropriately.
Before buying or selling gold, know how precious metal prices work. Silver, gold and platinum prices fluctuate often, and therefore you need to verify spot pricing the day prior to your intended deal. You should be ready to pay a higher percentage for fractional pieces like half ounces and quarter ounces over the melt prices.
Think about selling your gold online. You don’t need to have a physical store location anymore. There are plenty of websites out there you can use to sell all your gold. The site sends you a prepaid mailer to put the gold pieces in. As soon as your items are verified, you receive an appropriate payment.
You may think that solid gold jewelry is too expensive and choose to purchase gold plated or filled jewelry. You do get to buy gold jewelry without spending a ton at an actual jewelry store. There is cheaper gold jewelry at pawn shops or online.
If you take jewelry or scrap gold to local companies that will pay for it, shop around. Prices paid will vary from shop to shop. Look for stores off the beaten path as they often have lower overhead and better deals.
When selling jewelry, it is important to decide whether it will be sold as jewelry or as gold. Usually, you will only get the melt value from both private sellers and pawn shops. Never let this dissuade you, however, as you are sure to locate an appropriate buyer eventually.
If you’re using a mail-order gold buying service, make sure you understand any return postage fees you’ll need to pay if you decline their offer. Most companies will advertise free shipping, but they often charge a lot to put the items back in the mail. Be sure that you find out ahead of time how much it will cost to get back your jewelry.
You never know where you will find valuable gold; places like thrift stores are often great places to discover good deals. Just make sure you know what to look for. Sometimes, people sell to these kinds of stores because they were unaware of what they had. A little bit of effort on your part to look around can yield big results.
When at a gold party, talk with the rep about how they make the determination on the karats of the jewelry being sold. Quite often, the gold will be stamped. Sometimes, though, an eye test is insufficient and buyers have other ways of making that determination. The simplest test is the acid test, so if a rep is using this method, he may be a novice to the market.
If you’re not looking to own gold, you’ll still be able to invest in it. You can buy gold shares in an ETF, a mutual fund with a focus on gold, or in gold mining equities. If you choose to purchase actual coins or bars, take into account the cost of secure storage of your gold.
Get to know any dealer you’re going to buy gold from. It’s always a wise decision to check to see if a company has any complaints on file with the BBB, prior to giving money to any company. You can check out complaints and see if they were resolved. Even if you feel a pull toward a particular company, it’s a good idea to move on to a different dealer if they have any unsettled complaints on file.
As you prepare to sell your gold pieces, divide it into separate piles based on karat values. Gold values differ by karat, so if they are weighed together you will not get all it is worth. Higher karat values yield higher prices.
Knowing how to start to invest in gold is important before you jump in. This article has taught you how to make wise decisions. Keep in mind the advice that has been told to you, and get moving in the right direction.