Investing in gold is smart and can bring diversity to your portfolio. But you need to acquire a certain amount of technique first. Keep reading to discover the benefits of gold, plus some ideas on getting involved in it.
The high price of gold may give you the idea that gold-filled or gold-plated jewelry is better. You can still buy gold jewelry without spending too much at the jewelry store. There is cheaper gold jewelry at pawn shops or online.
If you do not have a large amount of money to start off with, why not consider purchasing scrap gold. If you do this on a regular basis your collection would grow quite quickly. Keep your stash in a safe place until you have enough of it to cash in.
Take your old gold that you want to sell to a number of different gold-buying companies before settling on one. Even the market “spot” price of gold is a national standard at any given moment, not all stores pay it. Stores which are not centrally located may be able to give you a better price.
Don’t avoid searching antique shops or thrift stores for gold. Many of these places offer great finds in gold at a cheap price if dig deep enough. Usually, you will see donated items of great value because people are unsure of their cost. Your knowledge will help you get the better end of the deal.
To verify that a particular piece of jewelry isn’t simply plated, you can try testing it yourself with a magnet. Precious metals, gold included, are not magnetic. Often the clasp of a piece is real gold, while the rest of the piece is just plated. This is a smart idea to test it this way.
Ask the gold party representative about how the gold’s purity in karats is determined. Quite often, the gold will be stamped. In other cases, there’s no visual evidence and the rep must make the determination by an alternate method. Acid testing is a very simple way to asses karat quality. If you see this method being employed, it’s possible that the tester is a relative newcomer.
Before you sell your jewelry for scrap gold, have them appraised. This is especially true for one-of-a-kind pieces like jewelry with intricate details and workmanship. An appraiser will charge you a nominal fee, but it is an expense worth paying if your piece is unique and valuable. A credible appraiser can probably connect you with someone who is likely to be highly interested in what you have to offer.
You can invest in gold without actually having gold in your hands. You have the ability to invest in mining stocks or exchange traded funds that have an emphasis on gold. If you decide to buy physical bars or coins, remember to consider how much it costs to store the gold securely.
Now you know how to use gold to your advantage. It can be a bridge between liquid cash reserves and mutual funds. Educate yourself fully on the idiosyncrasies of the gold market so that you’ll be prepared to make smart trading decisions.