When it comes to trading gold, it is very different than other commodities markets. When you compare it to Forex or even the stock market, you will find strategies differ as do research methods. To best profit from trading in gold, read this article from top to bottom to learn the tricks you need.
Find out if you have a piece made by a well-known designer. Sometimes, the origin of the piece and the designer of the piece makes a gold piece worth more, rather than having it melted down. Tell the buyer if you have a piece done by someone noteworthy, to get a better price.
Before going to sell your jewelry, investigate what the current market price of gold is. That way, you will know if you are being offered a fair price for the items you have. Although there are many honest gold dealers out there, there are also those who will try to offer you much less than it is worth.
Avoid rare gold coins unless you really know what you are buying. Rare gold coins can be difficult to sell, and they sometimes lose value quickly. They also might not contain as much gold as you think. Leave such purchases for the experts, and stick to better known coins for your own collection.
If you’re buying gold pieces for investment reasons, stay away from proof coins. These coins are polished and mounted, and they can sometimes be worth more than regular coins. The problem is, proof coin value only matters to collectors, and it can vary on a daily basis. For investment only purposes, stick with regular coins.
When dealing with gold commodities, proceed with caution. Markets all have their share of unscrupulous players, but gold is a market that seems to have many. There are plenty of honest dealers; however, there are also people who are only out to steal your personal information. You need to do your research and be careful.
Ask the gold party representative about how the gold’s purity in karats is determined. Frequently, the gold piece will have a stamp on it. There are ways to determine a piece’s purity if no stamp is present. Acid testing is a very simple method, so if a representative is using this, they might be new.
Always identify the karat value of your jewelry when you walk into the store to sell it. Some dealers will try to convince their customers that the karat value of a piece is lower than it actually is, and this results in less money in the consumer’s pocket. Have a clear understanding of your piece’s actual weight so this doesn’t happen to you.
Before you sell your scrap gold to a dealer at rock-bottom prices, make sure that it isn’t worth more to you the way it is. Some things that lay people think aren’t good enough for anything other than scrap can turn out to be very valuable. See an appraiser to be sure.
Now that you have read all of these tips and understand what they are offering you, take advantage of their rewards. Profits can be yours when you trade smarter and with the right knowledge behind you. All you have to do is make an investment, follow through and reach for your goals.