If you wish to be a gold investor, then you have definitely made a decision that brings balance to your investment portfolio. However, you should have information to help you along the way. Keep reading to learn why gold can be so useful as an investment strategy.
Get a value from a few buyers before selling your goal. From pawn shops to jewelry stores, each location will charge a different premium on gold. If you’re able to work with a couple of different places, you can see if you’re getting the best deal.
Bullion bars are a great way to invest in gold. Bullion bars come in a variety of weight. You’ll see them as four-hundred ounces or even a half ounce. If 400 ounce bars interest you, know it will be hard to find them.
If you’re going to sell your scrap gold at neighborhood shops, check out more than one. While many stores state they pay the standard price for gold, there are a number of them that do not. Stores not inside major shopping malls might have lower rent and overhead, and so can pay you more.
When selling any gold, you have to decide if it will be as jewelry or for its melt value. If you are selling to pawn shops or most private sellers, expect them to offer the melt value. Don’t let this hamper you, because you’ll find the right buyer eventually.
Whenever you begin the gold selling process, you need to be educated on the market price. Look around to understand what people are asking for similar pieces. This lets you determine a fair market value starting price point. Ask a bit more so you can negotiate.
Use a magnet if you want a cost-effective way to determine whether or not the precious metal is real. Gold and other precious metals are non-ferrous, so they won’t be attracted to a magnet. In some cases, individual parts of a piece (like the clasp) may be solid gold while other parts are plated. This is a good way to test that.
Talk with a gold expert on how they go about attaching a price to a piece of gold, so you know how much a karat is worth. Often, the item will be stamped. However, at other times, there is no stamp, so a lot of reps use other ways to find out. Acid tests are an easy way to determine value.
Does gold seem like a reasonable investment to you now? This strategy can bridge the gap found between mutual funds, stocks and cash savings. Now you should be able to see what makes gold good to invest in as well as what risks you should look out for.
David InghamFollow Dgingham