What do you know about the gold market? Do you understand what it takes to trade intelligently? Could you turn a profit if you bought and sold today? Regardless of what skills you already possess, this article will give you the helpful hints you need to turn a profit tomorrow.
Before attending a gold party, separate your jewelry by karat weight. Some buyers will try to weigh all of your pieces together, and then pay you based on the lowest karat weight among them. This amounts to less money in your pocket, meaning you have made an unfair sale.
Knowing the current market value of gold is important prior to selling or buying it. You will then be prepared to negotiate. Most dealers will give you the market value, but some will rely on the fact that people just want cash to try and get the best deal possible for themselves.
Only buy gold jewelry from a seller if they have a return policy You have no idea if the person for whom you are purchasing the piece will like it or if it will fit. For this reason, it is important to purchase jewelry items that come with a money back guarantee.q
Before taking your gold to sell, research the buyer. Most reputable dealers will be members of the American Numismatic Association. These dealers are held to a higher standard of ethics and must follow certain criteria when purchasing gold from individuals. To ensure you get the most money for your gold, make sure to use a dealer who is part of this association.
Make a commitment to yourself to get educated on gold. Know going in: only you are on your side. The buyers, no matter how reputable, want to get the best deal for themselves as possible. If you can’t speak the language, there’s a very good chance that you’ll lose in any sort of negotiation.
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.
Consider the long-term value of gold as an investment, if you are in the financial position to do so. Rather than buying low and selling as soon as the price increases, hold onto your gold. Over the years your wealth will accumulate for retirement or give you something precious to leave to your children.
Do not buy gold from strangers who approach you in the streets and offer to sell it to you at an unreasonably cheap price. It might sound silly but people fall for it all the time. These pieces are brass or gold plated and the seller will do anything to get you to buy it. Ask to go to the pawn shop and if they refuse, walk away.
To benefit from the upside potential in gold, consider gold index funds. They are easily traded on the exchanges. For instance, the CBOE Gold Index roughly tracks the price of gold, both up and down, by trading gold mining companies. There exchange traded funds that trade on gold futures contracts, but those tend to be quite volatile.
Figure out if you want to invest directly or indirectly in gold. Direct investment means you buy gold, the actual gold. You can feel and touch it. Buying gold coins is an example. Indirect investment means you buy funds or certificates that are pegged to the price of gold. Examples include gold mining stocks or exchange traded gold funds.
Prior to any gold buying or selling, look for a stamp on the gold or jewelry. This stamp lets you know what the karat value is of the piece you are considering. This is essential information to give you an idea of the exact value of the gold. The buyer or seller will be aware, so make sure you are too.
If you’d like to buy gold without putting a lot of cash down upfront, that’s alright. There’s nothing wrong with beginning with a little bit. Buy a few small items of gold, such as coins and jewelry, as you can. As time passes, your collection will accumulate, at which point you will have plenty of gold.
Although it can be exciting to buy gold from eBay and online auction sites, you must be cautious. You can be sure that sellers and fellow bidders know the value of the item so you need to know the value as well. Buy only from reputable sellers with positive reviews and good ratings.
These tips have truly given you a great education when it comes to the gold market. The next step is to put them to use by buying and selling some gold. Once you start getting a handle on the right techniques, you’ll be turning a profit and enjoying your new investment hobby.
