Have you ever wanted to invest in the gold market? Gold is one of the most popular commodities in the world. Gold is an important symbol of riches across all cultures. Its value has consistently increased over the past years, making this a very sound investment. Read the following for some tips on investing in the gold market.
Before you buy gold, be sure you know exactly when it will be delivered to you. To ensure timely delivery request a confirmation on the shipping date. You should be provided with the estimated date of delivery. Do not complete the order unless you have this in writing.
Be very wary of anyone that claims to be able to offer you rare and valuable coins at dropdown prices. The reality is that no one is going to give you something for nothing. The coins you are being offered are probably not as valuable as they are making them out to be. If you are looking to purchase gold as an investment, you should aim to acquire gold of a higher karat. 24 karat gold is worth the most amount of money and it goes down from there. 10 karat gold holds the least value, which is why you want to invest in the higher karat gold.
When going to sell your gold, bring along identification. If you come to an agreement on the sale of the pieces, you will be required to give the buyers a copy of your government issued id. This is a law meant to protect individuals against buying pieces that are stolen, and any reputable dealer will stand by this law. When mailing your gold away for sale, make sure to read all the fine print before sending it in. Some buyers have less than stellar reputations, and you will not see this until you read the fine print. Make sure you are comfortable with all the terms you are agreeing to, or look to another location to sell your gold. While some people like the idea of purchasing gold in coins or bars, the cost is very high. It is also not advisable to keep valuable coins or bullion in your possession unless you have a very secure safe. Having personal possession of a few gold coins is only a good idea if you know you can keep them secure. Break up your gold into karat values when you intend to sell it. The karat value determines the gold’s value, so you are unlikely to receive the best price for your gold if it is all weighed together. The money you receive in return depends largely on how much each karat value is.
You can invest in gold for your retirement plan, like a 401K or an IRA, but it has to be a qualified investment. Exchange traded gold funds will usually qualify just like other stocks traded on the market. Gold coins may be a different story. A retirement account may only accept .999 pure gold for investing.
To benefit from the upside potential in gold, consider gold index funds. They are easily traded on the exchanges. For instance, the CBOE Gold Index roughly tracks the price of gold, both up and down, by trading gold mining companies. There exchange traded funds that trade on gold futures contracts, but those tend to be quite volatile. Understand fees and commissions when buying investment gold pieces. Most reputable dealers will charge between five and seven percent. You need to realize this cost incurred to make sure you are still getting a good deal on the pieces you are buying, based on their true value at the time of purchase.
When you decide to sell gold, you should get a few sources to give you an estimated value. There are many buyers who purchase gold, but prices vary from one professional to the next. When you seek more than one estimate, a fair price is going to be more attainable. When you are buying or selling gold to another person, make sure you are keeping yourself protected agaisnt identity theft. Avoid giving out your personal financial information. This includes bank account numbers, credit card numbers and Social Security numbers. Take special care to not give out this type of information, especially over the phone to people that you don’t know. It is important to understand the type of scale your gold dealer uses. Some dealers use a Troy scale while others use a pennyweight. On a Troy scale, gold weighs 31.1 grams per ounce. A pennyweight equals 1.555 grams. In comparison, a US scale measures each ounce of gold at 28 grams. If you are seeking ways to invest your money and be guaranteed a profit each month, gold trading is something to consider. Although there really are no guarantees when you’re investing money, gold profits have gone up in the past decade. The article below shows you how to invest your money in this “safe” market called gold.