Gold is one of those investments that works in a way that is counter to other financial market mainstays, such as stocks, bonds, and currency exchanges. Sure, “buy low sell high” applies, however in times of financial instability, stocks and bonds can often drop in value. Gold on the other hand tends to climb in value during periods of financial instability.
Selling gold in today’s market seems to make sense. We have got all of the cues we need from the gold masters of yesteryear: financial instability, consecutive and overlapping environmental disasters, economic slowdown, recession, and hundreds of ongoing armed conflicts with the US being involved somewhere in the neighbourhood of 134 of them as I write this.
And while the time is ripe for breaking off some of that gold bullion from your personal stock, the time is also ripe for thieving. In times of gold rushes, the thieves and gypsies tend to come out to play in full force.
We interviewed a number of gold sellers and gold buyers to get their thoughts on how to navigate the tumultuous gold market and drilled down their responses into this concentrated beacon of light to illuminate your path.
Top 5 Things to Know Before Selling Gold
- Gold Buyers in Melbourne warn that selling gold at pop-up mall kiosks and hotel-based gold buying events may wind up in some heart break.
The reason behind it is not to say that all of these types of gold buying blitzes are corrupt, however you may find that you have no one to reach the next day should you discover that you were given a less than favourable deal.
- Quotes given over the phone are often a lure to pull you into a shop. Some pawn shops are less customer-oriented and are more interested in foot traffic to their store.
As a result they may give a high end bogus quote over the phone and then drastically reduce it for one reason or another when you arrive in person.Our suggestion: Skip the phone call preamble and just show up. It would be irresponsible for either party to think they can give or receive a quote without the buyer seeing the gold first hand.
- Know how much gold you have before you go shopping around for a reasonable sale price. Gold is bought and sold in “Troy ounces” which are a touch more than a traditional ounce. One troy ounce is equal to 31.1034768 grams which is almost .01 more than a home scale ounce.
- Another great nugget of information to know is how fine your gold is. 24 karat gold is as pure as it gets. A few calculations will reveal the worth of your gold. All you need to do is figure out the current gold price first. If your gold is 24k, you get 100% of its weight/gold value. If it’s 14 karat, then you get 58% of the gold weight/value. Got it? Good.
- Weighing gold must be done in plain sight; it’s the law. Same goes for the testing your gold for sale as well, or your gold in general. It has not been unheard of to have a gold buyer swap out a gold piece while the seller is not paying attention. It happens! Do not let it happen to you.
Do you think we left any important considerations out? Please let us know in the comments