Given the volatility of the global economy in recent years, buying and selling gold has gained a new degree of popularity. The key to generating real value and profits from gold is to spend sufficient time learning about the commodity and its market. Keep reading to gain valuable pointers that really can help.
Use caution when buying your gold. Make sure that you are buying from a reputable seller. You can learn who you can trust by searching the Better Business Bureau website and other resources like it. If you attempt to buy your gold through online actions, pay special attention to the seller's history.
Know you're going to have to show your ID when you sell gold. By law, people are required to present their identification when they sell gold. That is done in order to deter thieves and other criminals. Therefore, don't be embarrassed if they ask for your ID, and even snap a photograph of you.
Be aware of any fees that are attached to the transaction of buying gold. Online purchases come with several types of fees. You may suffer from a markup of as much as ten percent from the dealer. Read all of the fine print to learn about any and all fees that are related to the purchase
If you are planning on buying gold for historic value, make sure you understand the true value of the piece. Some are worth no more than their melt price. If you are buying for your own collection, that might be okay. If you are buying as an investment, you should look for pieces that are worth more, meaning it's often advisable to stay away from any mention of historic value.
Look at the World Gold Counsel website before buying from an online dealer. This site lists reputable dealers who you can trust working with. Buying from someone else could result in you being scammed, because there are many dishonest gold dealers out there. Do your homework first to make sure you remain protected.
Go into your gold selling knowing the current price of gold. This is a commodity that has a fluctuating price. Every day it's something new. If you aren't in the know, you could be taken advantage of by a less than reputable gold buying company. Remember, knowledge is the real power here. Go into any negotiation ready with it.
Many people find purchasing gold stocks is a wise investment for their portfolio. When stock of companies lose value, the value of gold stocks rise so this provides some protection for their long term investments. Many investment counselors are now recommending inclusion of precious metal stocks in long term retirement accounts.
Know that the gold jewelry you buy online may be different than you think it really is. When you cannot hold something and look it over in person, you may be disappointed when you get the item. This is because there's no telling what the quality will be like with just the picture.
Try to avoid buying gold coins from small shops that claim to be reputable dealers. You want to make sure that the people you deal with are really knowledgeable about the business, so it would be in your best interest to look for a gold dealer that has a much larger inventory.
Understand fees and commissions when buying investment gold pieces. Most reputable dealers will charge between five and seven percent. You need to realize this cost incurred to make sure you are still getting a good deal on the pieces you are buying, based on their true value at the time of purchase.
Do not buy gold coins that are for sale at the pawn shops in your area. Chances are you will pay a lot more for them here than you would anywhere else. It is best to look for a reputable gold dealer to do business with, so you know you are getting the best deal.
Know what your goals are before you invest money in gold. Though gold stands up well against a bad economy and inflation, it can be risky. Knowing your goals and limiting your exposure beforehand can help improve your chances of earning money.
Buying big lots of jewelry from estate sales can end up being quite profitable. There will probably be a lot of costume jewelry, but you can also come across some great real gold pieces of jewelry. Take your time to inspect each piece and you just might find yourself a treasure.
A popular method of buying gold is in the form of coins. In the U.S, you can purchase the Amercan Eagle, American Buffalo and St. Gauden's. These can be easily kept in your safe at home or in your safe deposit box at the bank. These are fun to look at and they hold their value well.
When selling gold, don't be surprised if the buyer does a scratch test on the gold. This test helps prove the karat fineness of the gold in hand so that a proper price can be determined. This is a totally normal practice and often done, so don't be alarmed by it.
Before getting involved with gold you must know that there is a downside. Since there is a rather large fluctuation in the prices of gold, it is best to hold onto it for at least three years. If you trade gold everyday there are just too many risks involved, making it much more likely that you will lose money.
Not all gold is yellow. In fact, not all gold is yellow or white even. Gold comes in many shades due to the metals that are mixed in with it. There are many surprises out there, including gold that's shades of green! There's still value in these pieces, so keep an eye out for them.
Gold has traditionally provided a stable repository of value, even in the most turbulent economic times. In order to extract maximum value from your own participation in the gold market, knowledge is absolutely essential. Hopefully this article has given you the foundation necessary to launch your own exploration of the possibilities offered by gold.
Orignal From: What You Have Always Wanted To Know About Gold
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