Many people today are looking to place their money in the gold market because it is considered a less risky investment. Even though all investments carry risk, chances are you won’t lose everything when you buy gold. Read on and get valuable advice in the world of the gold market.
Make sure the dealer you are considering is licensed. Make sure, too, that the dealer is active in reputable organizations within the industry. This is a business with a lot of sharks in it, so the more things that prove the legitimacy of the operation, the better it is for you.
If you are going to a store to sell your gold, make sure you research the shop on the Better Business Bureau’s website. You will be able to see what type of experience other consumers had, and you can determine whether or not the company was responsive to customer complaints.
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
When purchasing gold jewelry, ask the jeweler for a certificate of authenticity. This certificate is proof that you are purchasing a good piece of jewelry made of solid cold. Be sure the certificate indicates the price of the jewelry. Should you ever decide to sell your jewelry, this will be of help.
You can get varying prices depending on how you sell it. If you are selling to pawn shops or most private sellers, expect them to offer the melt value. Don’t let this hamper you, because you’ll find the right buyer eventually.
When deciphering the actual sales price of gold, you should understand the fees associated with selling gold. Dealers generally charge a commission of five to six percent for each ounce of gold sold. For example, if you are selling $100.00 worth of gold, the dealer will take $5.00 out of the proceeds for commission fees.
All investments come with a certain amount of risk, and gold is no different. To help limit your risk when selling gold, ask for referrals from friends or family members who have sold gold in the past. They may be able to steer you toward a reputable gold buyer.
When selling your gold, realize that jewelers use a different scale system than others. For example, one ounce of gold will weigh 31.1 grams. Some businesses weigh by the pennyweight, which is 1.555 grams. Then, they purchase by the gram instead of the pennyweight, which can result in them underpaying you.
Reading this article about investing in the gold market was the first step towards understanding how to make a safe investment. Now that you have these tips you should possess enough confidence to go out and invest on your own. Take what you learned here as great advice on how to approach the market of gold.