Saturday, November 2, 2013
Turn Your Scrap Gold Into A Lucrative Investment
Current recession has once again given way to a debate regarding the charm of selling scrap gold. In fact, the price of spot gold seems to be rising every day. Moreover it has been some years since the price of one gram of gold went under $1000. Therefore, selling scrap gold has once again seen as a great investment opportunity.
In reality, selling scrap gold was always a lucrative investment, but only for those people who knew that scrap gold is not scrap at all. On the contrary, goldsmith and pawnbrokers understand that the appeal of scrap gold is even more attractive than buying it from mining companies because it is easy to turn scrap gold back into its pure form without incurring high costs.
Where is Scrap Gold?
Scrap gold is not only found in broken jewelry, watches, antiques and coins, but it is everywhere in the household. Did you know that your television set, communication devices, house appliances and even cell phones may have components made of gold? Actually, people who know where to look for scrap gold have made it a habit of selling scrap gold to yield high profits.
As it will take another three to five years before the economy goes back to pre-recession era, now is the best time to sell scrap gold and buy gold investments. For sellers of scrap gold, current high prices mean that it is sensible to sell scrap gold and invest that amount in alternative forms of financial deals. It will not be an oversimplification to suggest that selling scrap gold is just one great investment opportunity but investing the profits gained from selling scrap gold is twice the gain. Since the aurora of mining precious metal has dwindled, savvy investors understand that scrap gold has gained immense importance. Therefore, it is the right time to sell your scrap gold and earn a hefty profit.
Where to Invest?
After selling scrap gold, an investor can reinvest the cash in gold stocks or buy gold commodity index. Since gold prices excel in struggling economy, anyone can make reasonable gains in the next few years. Gold exchange traded funds (ETF) and gold certificates have historically been safe investments providing investors steady gains in rising and falling economies. Since large gold mining companies have a monopoly in the sector, buying long term shares in these companies is a great hedge against fluctuating stock market. Also look to invest in a gold company that finds huge gold reserve and is located in a stable economic region. Whatever your strategy, just remember that selling scrap gold and reinvesting it in ‘golden investments’ can offer double the profit.
Save or Sell? Should You Sell Your Scrap Gold?
Unlike other commodities, scrap gold retains some of its value even if it seems to have lost the luster. Actually, scrap gold should never be relegated to drawers because every gold item has a value regardless of the condition. If someone has a broken gold item or any other form of scrap gold, it is wise to evaluate its true value and decide whether to save it as an investment or sell it. The charm of <a href="http://www.birksgoldexchange.com">selling scrap gold</a>lies in the fact that gold dealer will always be willing to buy scrap because after melting the gold can again be converted into coins, antiques and jewelry.
Still, selling your scrap gold may not be the best idea because if the current spot gold price is very low then the chance of getting a good price is minimal. Remember that you are not selling gold, but scrap gold. Scrap gold may not be worth the value of spot gold. Hence, it is always a good idea to check the current and historic prices of spot gold. If the price of spot gold is somewhat on a higher side then it is definitely worthwhile to sell your scrap gold.
When to Sell?
Also note that you should look to sell even if the gold price is not at its peak because the price of gold keeps on fluctuating, and you may never get the same price again. Only save the scrap gold as a future investment if the spot gold price is very low. In this case, you would want your scrap gold to regain value so that dealers and other interested people are willing to give you a fair price.
It is easy to check the spot gold price. Use the internet to look at the historic graph of spot gold price or just check in with your local goldsmith to assess current prices. Keep in mind that if the current price of spot gold is high then you should never make a mistake of waiting for the price to go further up. Like other commodities, the current value may be a price bubble waiting to burst.
Selling Scrap Gold
In order to sell your scrap gold, you should try to appraise its value. You should know how many carats of gold it is. Gold is 9ct, 14ct, 18ct, 22ct or 24ct. Sometimes this information is engraved into the item. After determining the amount of carat, check on the internet for current spot gold prices. As said, a local goldsmith can also advise you on the current price. However, don’t take his word for it because he is still a businessmen looking to get a good deal.
You should also check online with reputable dealers and auction sites to gather more information. Mostly, reputable online brokers and auction websites will provide a better value because your local goldsmith has to charge extra commission to pay for the overhead expenses. Nevertheless, act wisely when deciding to sell or save it for future investment.
Labels: Scrap Gold