Many people tend to not think about investing in gold because often they believe the only way to do this is by buying and storing expensive gold bars. Now you can do that if you want, but there is so much more to putting your money in gold than just buying it in bullion form. If you plan on adding gold to your financial portfolio in the near or distant future hopefully these tips will help you to make an informed decision as to which way to head.
Bear in mind that Gold bullion is one of the best options for gold investing. Bullion is derived from fine gold. Further, the value of bullion is simple to compute because of the markings present on them. You also need to have an appraisal done after buying from any seller just to be certain all went as planned and you got your money’s worth.
Protecting yourself from dishonest people who are trying to steal your identity should be of a concern for you. One way to try and ensure that you are protected is to purchase gold locally from a reputable dealer if at all possible. Never give your personal information out over the phone, especially your Social Security number and credit card information, unless you are 100% certain that it is a reputable company.
Try to only buy and sell your gold with a dealer that is recognized by the official gold and money associations. The reason being is that these associations require their member to follow their strict guidelines to make sure that you get fairly compensated whether you are selling or buying. One well-known organization to check out gold dealers is the ANA or American Numismatic Association.
Another really good way to check out the company before you do business with them is to speak with the BBB in your area to be sure the dealer is reputable with a really good rating. Your local Better Business Bureau will have a record of any complaints lodged about a company. If you notice there are registered complaints, then you might want to select another gold dealer.
If you are selling gold be sure you bring your state issued photo I.D. or passport or some other government issued I.D. with you because it is a requirement per Federal law. If your gold buyer doesn’t ask for your I.D., this is a major red flag that something may not be right so if this does happen, I suggest you stop the deal if at all possible. It’s in your best interest to err on the side of caution. You will also want to ask to see their state issued gold dealer license as well.
Understand that when buying gold coins or bars, dealers will charge a percentage commission that will be added to the price you’re paying above the gold spot amount. In this case, it can pay to shop around to find the most reputable dealer with the lowest possible commission rate. However, you can expect most retail commissions an ounce of American or Canadian coins or even bars to be somewhere around five or six percent on average.
Keep in mind that the weight of your gold jewelry will also include the weight of any other metals that were added to make the gold stronger. A dealer who purchases gold will only pay for the actual weight of the gold itself. Just be realistic about your expectations, even if the jewelry has sentimental value because as rough as it sounds the dealer could care less how much it means to you, they only care what they market will pay for it.
Many gold dealers think that everyone who is selling their gold must be strapped for cash so they will low-ball you. Remember, be a comparison shopper! To ensure that you are getting the most for your gold, you should try to shop around. Get written offers from several different dealers and go with the highest sales price. Also, inform each dealer that you are shopping around for the best price.
Get ready for a little negotiation; whether you’re buying or selling gold, there should be a little wiggle room in whatever prices that they throw out at the start. This is totally normal and it really is your perfect opportunity to show your negotiating prowess and jump right into the ring and work to get the best price possible from them.
Each gold dealer will make different offers depending on their commission set up or the flexibility in their fees. But you won’t see the benefit of this unless you shop around so don’t just stop at the first place you check out and then call it a day. You may be making a bad deal for yourself that way.
When mailing away gold to sell, make sure you find out what you can do if the items are lost. Most companies will not take responsibility for items lost or damaged in the mail. If they limit liability, see if you can buy additional insurance with either them or at the very least the carrier you intend to use to ship.
What about Gold Parties?
Gold parties seem to be popping up everywhere these days, and participants usually enjoy going. They get to hang out with their friends and leave with money in their pocket. However, remember that the representative may or may not even be qualified to evaluate your gold, so you never know what kind of price you are going to receive.
Before going to a gold party, it is a really good idea to find out which company exactly will be buying your jewelry. Research the company ahead of time by taking a look at their website and finding out how long they have been in business. You can also need to check the Better Business Bureau to see if they are members or have any reviews or complaints.
Keep your expectations low, while you may walk out with a few hundred dollars, but you are not going to get rich. You also won’t get the full value of your jewelry because there are far too many hands in the pot since the company wants to make a profit, but they also have to pay the host. So definitely go and have fun just avoid selling anything you don’t want to sell because of pressure.
How To Invest In Gold
Besides buying or selling physical gold in the form of bullion or even jewelry you now have many other ways to profit off of gold if you can do it correctly. Take ETF’s for instance or Exchange Traded Funds but while ETFs are a great way to trade in gold, nothing is like owning real physical gold. There are downsides to this, of course, such as the difficulty you will face if you need to sell the gold fast, plus the cost upfront is often large. After about six years or so have passed, it ends up actually being cheaper than an ETF.
If you are still unsure as to how you want to proceed it is best to meet with a local financial adviser to go over your specific situation. If you don’t already have one you can speak to someone at your local banking institution who should be able to assist you further. Do a lot of research on different investment advisers if you do not want to go through your bank just be sure they are reputable.
Hopefully, this article has helped you realize that there are many options open to you for investing in gold including ones not included in this article. Now that you’ve read these tips, it’s time to put them to good use while you can. Once you see gold in your investment portfolio, you will feel much better about the equality and quality of your financial investments.