Are you looking to jump into the gold market? Have you been thinking about making a lot of money in this fascinating market? If that’s the case then read on for some amazing tips on how you can profit in this ever-expanding market. The article below will get you started in the right direction.
Always do your homework with regard to any person or entity from whom you are thinking of purchasing gold, and look around for a buyer with a good reputation. BBB and consumer reviews are two sources of information that can give you an indication of a dealer’s reputation. Check for offers through different buyers to make sure you get the best price for your gold.
Do you have an allergy to nickel? If so, you are better off getting jewelry that has a higher gold content, like 18 or 22 karat gold. Items that have a higher gold content are less likely to cause an allergic reaction. You should also stay away from gold plated jewelry.
You need to know what you have before you go to sell it. Higher karats equals higher gold density and more value. Buyers who do not have a good reputation may try to take advantage of sellers who don’t know exactly what they have. Twenty-four karat gold is almost pure gold so it is worth way more than fourteen karat gold.
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.
Be sure to select carefully when considering taking your gold to a pawn shop or jeweler for sale. Even though the market “spot” gold price is the national standard, not all stores will pay it. Kiosks in malls and other high-traffic areas pay more in rent and operations, thus, reducing the amount of money they are able to offer for your gold.
When deciphering the actual sales price of gold, you should understand the fees associated with selling gold. Dealers generally charge a commission of five to six percent for each ounce of gold sold. For example, if you are selling $100.00 worth of gold, the dealer will take $5.00 out of the proceeds for commission fees.
Be fully aware of what you have. Pieces that appear to be gold may not be worth gold’s weight. Gold is mixed with other metals for strength. That can make it less valuable. This also applies to pieces that are plated with gold. Having an appraisal done to your gold can help you get the best idea of its actual worth.
Use a magnet to determine if an item is made of gold. Gold, unlike other metals, will not be attracted to a magnet. Sometimes only the clasp is solid but the rest is plated. You can test your jewelry this way.
Watch out for the gold buying bait and switch. There are buyers out there that promote the price they’ll pay for bulk gold, but don’t tell you that the price is much more for smaller quantities. This can leave you making a very bad deal. Ask before you make any sort of commitment.
Have your gold weighed out in the open, in front of you. If a dealer wants to take your piece to the back of the store, beware. Some less than ethical dealers will use a bait and switch, or they will tell you the pieces weigh less than they actually do. This means less money in your pocket, and it amounts to an unfair deal.
When looking to buy gold as an investment, it is important that you invest in solid gold. There are many phrases you should look out for such as “gold clad,” “gold enveloped” because these are just fancy words for gold plated. This means under the gold is a different metal, which drastically drives down the value.
If you are considering selling your gold to a pawn shop or second hand store, go with the pawn shop. Pawn shops have certain regulations they must abide by, and this protects you, the consumer. Second hand stores have no such regulations, which opens up the possibility of unethical practices.
Never leave any gold alone with a potential buyer or dealer. Always be present while your gold is being assessed. While you may have utter confidence in the reputation of your dealer, it’s still a potential risk. Things can get lost. Pieces can be misplaced. And worst, bad dealers may try to swap out similar looking jewelry.
Knowing about the gold market is one thing, but if you would like to make money in it then you will need good investment strategies. The article you just read offered up solid advice on everything you need to do in order to succeed in the gold market. Be smart when you invest, and keep the advice learned here close by.