The market that gold commands has seen a huge spike in popularity because of the worldwide recession. Perhaps you wish to have a greater involvement in the gold market but need to learn more. Read on to help out your situation.
Save your money to buy higher quality gold and avoid gold-filled and gold-plated pieces. You can still buy gold jewelry without spending a fortune at a store. You can get gold jewelry cheaper online or in pawn shops.
If the reason for purchasing gold is for your retirement fund, it’s crucial to purchase the appropriate kind. The IRS must have approved the gold that you receive. You want to make sure you buy 24 karat coins or bullion bars. Over time, gold bars appreciate better than gold coins.
Never sell to an unlicensed gold dealer. Licensure is not a guarantee of credibility, but it is certainly a good indicator. There are plenty of buyers for gold, so do not think that you must make a sale to the first buyer that you meet.
Know what you are working with. 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. This may lower the price. This is also true of items that are just plated. If you don’t know exactly what you have, consider an appraisal.
Ask what method is used to determine the purity or karats of your jewelry. In most cases, the item is simply stamped. However, you may see no sign at all but there are ways to determine its value. The simplest test is the acid test, so if a rep is using this method, he may be a novice to the market.
Always make sure you’re researching the gold market prior to investing in anything. Some people will make false claims to try and get you to invest. You must be extremely careful about any promises concerning getting rich quick. If you do not buy into the premise that you will get rich quickly, then you won’t be disappointed.
Sort your gold by how many karats it is. The buyer will doubtless weigh all of your pieces before setting a price for them, and if you aren’t attentive you may see everything lumped together and weighed with the lowest-karat pieces. This will result in you receiving less money. The way around this is to present the gold to the buyer pre-separated so that you get fair market value for each piece.
One way to sell gold is through the mail. Many sellers like this process because it is simple. You ship your jewelry in a prepaid envelope, and then you receive a check. But, keep in mind that you may not get as much money this way. Sometimes, you get paid 30 percent less, so you should be aware of that.
Make sure you understand the buyback policy of your seller. Reselling gold is often done at a premium. Try to consider all the different costs involved such as shipping. To protect yourself, avoid buying gold and leaving it in the custody of a dealer.
Gold markets have experienced a tremendous boon in recent times, most likely in reaction to the deep financial insecurity that has gripped much of the world. It’s best to understand how selling and buying gold works. Use what you’ve learned here when dealing with gold and you’ll be an expert in no time.