When most people think of gold buyers, they don’t immediately think of coin collection or gold bars. This is unfortunate because gold buyers have a rich history and a variety of options available for purchasing precious metals. As one of the most stable investment options on the market, gold has proven to be an excellent way to protect wealth and secure financial futures for generations to come. A solid understanding of gold buyers will allow you to realize just how lucrative this investment opportunity can be.
The first step in securing your investments with gold buyers is to understand what is meant by “urity.” Simply put, pure gold is 100% pure and leaves the rest in the metal. With all this in mind, it is easy to see why so many people are looking to purchase small amounts of gold. They hold an investment in the potential for future profits but also understand that they are buying something that is pretty much pure. It is up to you to research the different options available and select a dealer that offers a reasonable profit and good customer service.
To that end, gold buyers usually sell jewelry and bullions that are slightly contaminated with trace amounts of tungsten or other metals. Because these items are sold in small quantities, there is not much worry about purity and it is possible to have the metal tested and determined pure. If the customer decides to proceed, he/she will need to research the type of gold jewelry and the bullion for clues to its purity. Many times, collectors will sell their items without knowing if it contains real pure gold or just a few traces of tungsten.
Another common method used by gold buyers is to buy from refineries or mints. Because these establishments do not deal directly with consumers, their inventory is much less likely to be tainted and they are more likely to sell at a better price. Their goal is to keep their costs as low as possible and their profit as high as possible. Refineries and mints will offer higher prices for gold jewelry and bullions than pawnshops.
One way gold buyers stay informed about the current market value of gold is to subscribe to a gold exchange traded fund. Gold ETFs are traded on major stock exchanges like Nasdaq and OTCBB. Prices can change quickly in the market so it is important to monitor the rates to determine if an increase in price is due to the rising gold market value or if a drop in prices is expected. Gold ETFs are traded on major exchanges and are the same as stocks traded on major exchanges.
As with any other investment, it is important to consider the risk of investing in gold. Unwanted gold could become a problem should you need to redeem it. Since selling unwanted gold is very expensive, most gold buyers will choose to recycle their unwanted gold instead of selling it to another party. The best gold buyer should ensure that his clients sell the unwanted gold through him/her and keep a watch on the market to make sure that the price of gold doesn’t fall.
It is important to note that not all gold buyers sell coins or bars. There are some jewelry manufacturers who sell their gold directly to consumers. These manufacturers are able to buy high-quality jewelry at wholesale prices and resell them to customers at competitive prices. Jewelry designers usually sell their products in karat form, which is 10 times the weight of the jewelry itself.
For more information on gold buyers, visit Gold Guides. They have information available about karat gold, American Gold Eagle coins, and Celtic art. They also have a comprehensive list of precious metal dealers that are licensed by the US Commodities Futures Trading Commission. This ensures that you are dealing with a reputable dealer.