Gold is the one currency that’s accepted almost anyplace in the world. It has been widely recognized through history, and it’s the most precious of all precious metals. Gold is one of the safest investments, and the prices and value are rising. Whether you want to collect and sell scrap gold from jewelry for a little extra cash, or you decide to get into heavy investing, here are some tips on investing in gold.
There are three basic gold investment methods: buying scrap gold, buying gold bullion, or investing in gold futures. All have varying degrees of risk, with a different degree of payoff. The easiest method for new, small investors is to go to family and friends, local auctions, estate sales or advertisements and offer a fair price for collections of gold jewelry or scrap gold. This can be resold at a local pawn or jewelry shop for a small profit is you price it right.
The next method is investing in gold bullion. This method of investing in gold is a solid long-term investment with very low risk; even in a bad economy gold prices hold steady over time and gold is recognized in every economic system around the world. You need little experience to begin this type of investing, just good reference material about coins and market value, and the rewards can be substantial once you learn the ropes. You can buy and sell rare or historic coins or buy gold in bars. Gold in bar form is normally 99.5 to 99.99 percent pure, and common markings are Credit Suisse, Metalor, PAMP, and Johnson Matthey, which are the names of the most productive gold refineries. Gold is sold by weight, with coins weighing from 0.10 oz to 1 oz, and gold bars sold in 1 oz., 10 oz. and 100 oz. weights. The next step is to find a reputable dealer who has been in business for a while. Banks, auction houses, local gold wholesalers and online brokerages are good sources. Gold is usually purchased at or just below market value, with a one percent premium attached.
Buying gold futures is a variable investment that depends in part on speculating on the short-term value of the commodity. This can be as high risk as traditional investing, and it isn’t a good option for someone new to the market.