It glistens in the light like flaxen blonde hair. Like a river of molten lava, it reflects the glory of the sun on your wrist. Gold is a mesmerizing precious metal which many can’t get enough of. If you’d like to start trading on the gold market, the tips below will help you succeed.
Avoid buying gold coins for their historical value, unless the investment can stand on its own without the gold factoring in. Although coins with historical value can be very profitable investments, most often it is that alone and not the composite material that makes you money. Don’t confuse the two markets.
Understanding how gold alloy works is important when both buying and selling your gold. Since gold is too soft to be used by itself, it is combined with other metals to form an alloy. The karat system will tell you how much gold is in the alloy. In the United States, jewelry must be at least 10 karats for it be legally allowed to be called “gold jewelry”.
Get an appraisal if you do not know the value of your gold jewelry. This will cost a little money up front, but it’s important to know what you have. An independent appraiser should be used in order to receive the best value. Remember, though, that you won’t get the appraiser’s price for your gold.
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.
Do not assume because there is no stamp that a piece of gold is not real. There are many solid gold pieces out there that are not stamped at all. Try testing the gold in question with a magnet and if it does not stick, you probably have solid gold.
It is necessary to find a reputable dealer you can trust if you wish to purchase gold coins or bullion. Caution is required to avoid purchasing low quality gold from a scam artist. It can be extremely difficult to sell this gold at a later date and you will probably lose money.
Read the terms and conditions of any gold mail-in service. These operations tend to have a lot of fine print, some of which can really work against you if there are any issues down the line. Before choosing this route, read everything you can so that you avoid as many potential pitfalls as possible.
Be cautious about buying gold from a mobile office. Anyone who sets up in a hotel or other temporary location should be considered with a great level of caution, even if they promise great deals. Remember that these dealers might not be there if you ever have to go back, meaning they can easily sell you something that isn’t worth as much as they say it is.
Everyone loves to wear gold, but few have the fortitude to trade it on the open market. You have decided this endeavor is one worth undertaking, and these tips will help you get the job done. Go forward, continue learning and use your great gold market knowledge to your advantage.