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The New Gold Rush: What You Should Know

Did you know that gold investing can help you with various things? With the right knowledge, you can build your profits into a hefty amount. This article is full of wonderful tips from the experts.

Prior to selling old jewelry, research the going price for gold. This can help you discern whether you’re being offered a good price or not. While dealers often give you market value, some are used to sellers wanting quick cash.

While you may be very tempted to quickly send off your old gold scraps and jewelry to a business that buys gold through the mail, do your homework about the company first. You should find out how long the process takes, and get package tracking and insurance on your package, too. Lastly, take a photo of all that you placed in the package in case there’s an issue later.

Anything with gold can be sold to a good dealer. Examples of saleable items include broken jewelry, spoons, forks, household goods, etc. It need not be completely pure, either. It could be plated gold or it could be that just a portion of the item is made of gold. It’s still possible to make money this way.

Spot Price

On the day you are planning to buy your gold, check the spot price. The spot price is readily found on the Internet. Paying for gold that is any higher than an 8% markup is not a wise investment. Paying that price would simply be unfair to you.

Know what you are working with. Not everything that looks like gold is worth its weight in it. Often, you will find other metals mixed into the gold in order to strengthen the item. This can lower the price. Gold-plated items apply the same principle. Have your pieces appraised before sale to determine their value.

You can use a magnet to determine the authenticity of gold. Precious metals do not respond to magnets. Many times you see the clasp gold plated but not the rest of the piece. The magnet test is simple and effective for this purpose.

Those costume earrings you’re holding in your hand may have real gold backs or hoops. Clasps of necklaces and ring bands are often real gold as well. If you want to sell these, though, you need to get quite a few of them together to make it worth it. A larger profit can be obtained this way as many pieces are being sold in one “lot”.

Always separate out your gold according to karat weight before you sell it. Keep an eye on the gold buyer because they may try and deceive you. A common trick is to weigh everything together and then give you the price for the karat that is the lowest weight. This of course results in fewer dollars for you. Separating the gold before you go prevents this from happening.

When working with a dealer of precious metals, carefully examine every page of the contract before signing it. Gold buying and selling is serious business, not a game. You must be aware of any form you’re attaching your signature to. If you do not agree with the term, go to another dealer. It’s better to walk away and find another deal than run any risk to your personal information or financial wellness.

Follow the tips presented here to earn a steady profit buying and selling gold. With sensible goals and wise decisions, you’ll be able to grow the money you invest in gold. Do plenty of research on this form of investing and start with a small investment.

Author

Carmen Evans