Do you want to make a gold investment? If so, know it’s a smart choice that balances out your portfolio’s risk. But you need to acquire a certain amount of technique first. Keep reading to learn why gold can be so useful as an investment strategy.
When you invest in gold, you can’t go wrong with bullion bars. They come in weights that vary. From .5 ounces to 400 ounces, the choice is yours. The 400 ounce bars are generally hard to find.
Prior to buying or selling any gold, be sure you truly understand how gold pricing works. The values of precious metals fluctuate daily, so be certain you know the spot price before any transaction. If you have gold that does not weigh up to a full ounce, you may receive less than the melt value when selling it.
Before going to sell your jewelry, investigate what the current market price of gold is. That will help you determine whether or not a dealer is actually offering you a good price for your pieces. Many gold dealers will pay market value; however, some dealers try to get your gold cheap.
Melt Value
When it comes time to sell your gold, figure out if you would like to sell it for its melt value or simply as a piece. Many private buyers and pawn shops are only willing to give the melt value. Selling your unique gold pieces to a collector can end up netting you more money.
Make sure you know the spot price of gold the day you plan to buy or sell. Many websites contain this information and it varies every day. When purchasing, don’t pay greater than 8% markup above the spot price. Anything more is unethical.
If you send off gold by mail, see how much it is to have it returned to you if the offer isn’t that great. A lot of buyers offer free shipping but will charge you a lot to send the item back. Know what this cost is before you mail your items.
Know what it is you actually have. A lot of the time, gold isn’t really worth what it looks like it’s worth. Usually, there are other metals mixed with gold for stability. This actually lowers the price of the gold. Gold plated items are subject to this too. Having an appraisal done to your gold can help you get the best idea of its actual worth.
Check Better Business Bureau ratings for gold dealers and jewelry stores before deciding where you want to sell your pieces. The BBB listing should include basic data about the company, along with details about any complaints made against them. Pay close attention to whether any of the complaints were not settled in a satisfactory way. If you see lots of complaints that have gone unresolved, think about moving on.
Know your dealer before purchasing gold. To ensure you’re dealing with someone legitimate, do some research with the BBB. Get in touch with the BBB to find information about which complaints, if any, have been filed. If you find several complaints, look elsewhere for a gold dealer.
A good way to get a good price on gold is to ask your relatives for their broken jewelry. Buy a jewelry scale and weigh the gold so you can give your loved ones a good deal and still make money for yourself.
With luck, you now feel comfortable adding gold to your portfolio. This strategy can help fill in the gaps between your savings and stocks. See why gold is such a great investment, and understand the differences in risk between the different choices available to you.
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