Gold prices are at record highs and if you watch any late night cable TV, you’ve probably seen the commercials encouraging people who own gold to cash in while prices are high. There’s nothing wrong with treating the gold you own as an investment and cashing in if you think the time is right, but there are many gold dealers taking advantage of gold owners who don’t realize the true value of what they have.
Some gold buyers are getting away with scams in which they pay only 15 or 20 percent of the true value of the gold, taking advantage of people who are either uninformed or desperate for some quick cash. It’s reasonable for gold merchants to make a profit when they take gold off your hands, but the profits should be reasonable. Here are some ideas to help make sure you get a fair deal when selling gold.
– Get Educated: Not all gold is created equal. If you have actual gold coins, like the popular American Eagle coins that many investors prefer, then you know exactly how much gold you own. However, a 14-Karat gold necklace or ring is not made up of 100% gold. With 14-karat gold, the gold content is approximately 58.3 percent, so your expected return on that piece of jewelry should be adjusted based on the actual amount of gold in the piece of jewelry. Knowing what you own will help you to determine the value you should expect to receive in return.
– Use A Reputable Buyer: It’s easy to get a license to buy and sell gold and with the frenzy surrounding gold prices recently, gold merchants are popping up on every street corner. You’re more likely to get a fair price from someone who deals in gold full time and has a reputation to maintain than a plumber who trades gold on the side. You can also do a background check of your own with the Better Business Bureau to look for complaints against a gold merchant. Some of the best known companies that buy gold have a long list of customer complaints.
– Ship Gold Securely: One gold infomercial shows a happy gold seller dropping a bunch of jewelry into an envelope, sealing it, and sending it off to await payment. You wouldn’t send an envelope full of cash and if you can avoid sending an envelope full of gold, you should. Find a secure way to ship your gold with the option to insure the contents of the package and confirm delivery if you can’t find a local buyer.
– Don’t Throw Away Memories: Gold prices are high and some people are going to cash in, which is fine. As you decide whether or not you can part with your gold, the emotional value attached to items you may have inherited or received as a gift is important to consider as well. There will always be gold buyers and gold prices may continue to increase so don’t part with something that is special to you if you don’t have to–the opportunity to sell gold isn’t going anywhere!
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