Feb 10 2014

Investing In Gold And Making A Fortune

Posted by administrator in Business People, Business Tips, Uncategorized

Investing In Gold And Making A Fortune

Does the gold market intrigue you? Everyday in the news, you hear reports about gold prices in relation to the business economy. But how does one make gold into a good investment? If you are looking for answers, this article may be able to introduce you to some key aspects of gold investing.

Beware of buying or selling gold from any mobile offices or cold-call solicitations. These “businesses” are set up in temporary locations that include inns and motels. They claim to offer instant cash for silver and gold pieces, especially coins. They enjoy taking pieces to make a profit for unfair or no compensation.

When buying gold through a private sale, always test to make sure that the gold is real. There are many pieces of jewelry that are gold plated. In order to make sure you are buying the real deal, invest in a gold testing kit. They are not expensive and can save you from buying fools gold.

Do not hesitate to sell any gold jewelry that you no longer have use for. There are many people that hold on to these pieces for no logical reason when they can be sold for a tidy profit. The money you make from the sale would do more good than unused jewelry sitting in a box.

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.

Knows all the details in a gold sales contract. If you use any of the abundant mail-in gold buyers, study the fine print carefully before making the sale. That way, you will be aware of the cut of your proceeds that will go to fees and commissions.

Look into any company you are considering via the Better Business Bureau. If there have been complaints lodged against the company, then it’s best for you to just move on to another buyer or seller. The BBB is an excellent first line of defense to weed out the worst companies out there.

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.

Before buying gold, know your dealer. Call the BBB or visit their online website to get assistance in finding a reputable gold dealer. By contacting the BBB, you can see if they have any complaints against them. If so, think about using someone else.

The value of gold has been on the rise over the past decade. No one knows whether it is smart to invest in gold right now or not, though. Generally, a weak dollar equals strong gold prices.

Don’t be afraid to travel a little bit to get an appraisal. Sometimes suburban gold dealers offer better rates than dealers in the middle of the city. It can be worth the extra gallon or two of gas to potentially get a hundred or more dollars more in the sale.

When you invest in gold pieces or bullion, beware of the tax implications. The Internal Revenue Service considers investment in precious metals similar to investing in collectibles. That carries a high tax liability than investing in equities. You have to factor that in when you calculate the potential returns of your gold investment.

Beware of gold selling expos. These expos create a sense of urgency and you may end up getting a lot less for your gold than you would receive by selling to a local dealer. Many people find out that they lose approximately one third of the value of their gold by selling at an expo.

Remember, a gold dealer only buys gold, not the alloys it’s mixed with. Many gold pieces are made with gold that’s less than pure (based off the karats). Your dealer will take that into consideration when offering you a price, so the weight of your piece may not reflect what you’re offered exactly.

You have to consider at what percentage of your portfolio do you want gold as an investment. This means as you keep growing your investment, you are going to have to manage it accordingly. A good rule of thumb for gold investors is to tack gold at 10 percent of your overall portfolio. This is just a suggestion.

Investors around the world buy and sell gold everyday. Gold prices not only affect the price of gold jewelry, but they have direct relationship to the world economy. This article gave you a brief introduction to what the gold market involves. If you are serious about gold investing, use this information as a stepping stone into your personal education of this hot commodity.

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>