Protecting Yourself When Making a Gold Buy

Before you head off to meet someone to buy gold, it is critical to follow a few important steps. After all, you may be walking around with a few hundred dollars of cash in your pocket to buy gold, and if you have a successful buy, then your purchase will be on you afterwards. You need to be safe.

Tell People Where You Are Going

Going to Buy Gold

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Before you leave to meet your seller, tell someone you trust where you are going. Give this person specifics about where you plan to go, what time you plan to meet someone and what time you’ll be home. This way, if you don’t come home on time, they know exactly where you were last. Never leave home to meet with a stranger if you haven’t shared the destination location with someone. Let them know what you are doing, too.

Meet in a Public Place

Public Place

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Your transaction is legal. There’s no reason to meet in an alley someplace. Choose a coffee shop or a diner. Be sure it is busy enough that there is someone else there when you plan to meet someone. Choose a busy time of the day, if possible, to ensure there are enough people there to notice you. Keep in mind, someone may ask you what you are doing. Be honest. Tell them you buy gold. They may want to sell to you, too.

Be Discreet When Handling Cash

Discreet Cash

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Instead of pulling out a stack of $100 bills, it is a better idea to keep them in separate pockets. Take out just what you need. For example, if you plan to pay $500 for the purchase, count out five, $100 bills in your pocket before pulling it out. As long as you have the same denomination in bills, you don’t have to remove them from your pocket to know how much you are taking out. Though you may trust the person sitting across from you, the chance someone else will see you with a stack of cash is high.

Avoid Confrontations

Confrontation

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When you test the gold for authenticity, the person selling to you may question your methods. Instead of allowing a confrontation to occur, tell the individual what you are doing and how the system works. Keep the dialogue during the conversation positive and upbeat. You do not want the other person to think you are taking advantage of the situation. If they ask what you do with the gold, tell them you hand it over to your boss or try to find a buyer. Don’t brag about the money you are making.

At the end of the day, you just want to make the transaction a smooth one. Be quick about it. Get in and get out without making too much of a scene about the process. Both parties will appreciate this.

Making a Profit from Buying Gold Jewelry

Gold is a symbol of wealth throughout the world, but many people don’t realize how easy it is to make big profits by simply buying and selling gold jewelry. The process is easier than most people believe.

Buying Gold to Resell

Buying Gold

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When you think about buying gold, expensive jewelry stores and gold dealers are probably the first sources that come to mind. When you buy gold at these places, there’s no way to make a profit by reselling it. Even dealers that offer gold pieces at wholesale cost charge too much for the average person to make money. The trick is to buy used gold or even scrap pieces from people who need the cash more than the items they’re selling.

There are several places to look. Some of the best sources include:

  • Estate sales
  • Garage sales
  • Craigslist
  • Private auctions

Jewelry and gold sold through these places is typically well below market value, so you can make a pretty profit when it’s done correctly.

How to Resell Gold

Resell Gold

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Buying gold at a low price is the first step to making a profit from this lucrative business. Many people consider that the easy part. Reselling gold jewelry isn’t difficult either when you know what you’re doing. There are lots of places that buy gold and accept scrap metals, ranging from pawn shops to internet businesses, but these are not the locations to sell to if you want the greatest returns. In fact, most of these buyers are simply middlemen making their own profit on your jewelry. Metal refineries are the key to making a real income from buying gold.

What Is a Gold Refinery?

Gold Refinery

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Refineries work with a variety of metals, including gold, silver, palladium, and alloy mixtures. The purpose of a refinery is to transform scrap metal, impure bars of metal, and other useless objects into pure bars for reuse. These establishments pay for the metals needed to complete the process based on the current market value and weight of the metals involved. The amount of profit made depends primarily on the weight and purity of the metal you sell.

How Gold Refining Works

Refining Gold

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The refining process removes impurities from metal to increase its value. To do this, refineries melt scrap gold and unwanted jewelry pieces in a large furnace. The refinery adds borax and soda ash to the hot mixture. This combination causes the pure gold to separate from less valuable types of metal, typically resulting in gold that is 99.9% pure. Silver, copper, and any other valuable metal derived from the refining process will add to your profits.

Determining Profits from Gold

Gold Profit

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Each refinery has their own payment system, but the basic process is generally the same. In most cases, the current market value of each metal, along with the weight and purity after refining, determines the amount. Of course, the refinery is also in business to make a profit so a percentage is typically deducted to cover the refining process. Purer gold tends to bring the best profits, as well as metals like platinum and palladium.

Making a profit from buying gold jewelry is much easier and lucrative than many people imagine, especially when you know a little more about the process.

Ways to Keep Up With Gold Prices

Once you enter the business of buying and selling gold, it’s your job to monitor gold prices. While the price of gold is more stable than other investments, the prices still fluctuate to a degree. Every time the prices change, either up or down, that changes your profit margin significantly. Keeping up with the current value isn’t a challenge with the right tools, but it is necessary if you plan to make any money off of your buying and selling.

Know the Terminology First

Gold Terminology

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A common problem many people have is simply not knowing the difference in gold terminology. The spot price is not the same as the retail price, in other words. The spot price of gold is based on the futures value, a type of investment. If you were selling on the commodity market, rather than physically, this would be the value you need to know. The amount people buy and sell at is the retail price. Unless you are buying and trading gold futures, you’ll want to monitor the retail price of the precious metal.

Use News Sources

Gold News

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The value of gold fluctuates throughout the trading day. The best way to know the most up to date value is to use news sources. Yahoo Finance may be a good option. The Wall Street Journal also publishes gold prices on its website. Forbes, CNN, and USA Today post the current values of gold online and in print. Additionally, these sites have experts who predict the value changes likely to happen in the short and long term. Using these sources, you can track the value of gold with any Internet connection.

Use a Smartphone App

Gold App

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If you have a smartphone, visit the app store to find a gold price app. Both iPhone and Android applications are available. Some also offer the international value of gold based on real-time stats from markets throughout the world including the United Kingdom, China, and Australia. For Android phones, Gold Live! is one application option to consider. For Apple users, Gold Price Live may be a good option to consider.

Monitor Your Investments

Monitor Gold

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Like any business owner, it is critical to monitor the purchases and sales you make. Use a business tracking software program to help you to monitor these purchases. When you make a purchase, enter it into the system. When you sell the gold, enter the amount earned from the sale. Calculate your profit. A simple Excel spreadsheet can help you with this. You can also look into QuickBooks or other accounting software to help.

Keeping up with gold prices is part of managing your business. Knowing what’s going out and coming in can help you to make better investment decisions down the road. You’ll also like to see your profits rise, especially as the value of this precious metal keeps climbing.

5 Tips for Buying Gold Online

Looking to invest in gold and prefer buying online? Smart thinking, because it can be difficult to find enough gold locally to build a solid portfolio. Experts encourage investors to accumulate 10-20 percent of their net worth in gold due to the terrifying state of the world’s economy.

Some experts predict that an economic collapse could send the price of gold as high as $10,000 per ounce. This means even a meager quantity of gold could be lifesaving if global affairs continue to deteriorate. Here are a few tips for making sound gold investments online.

Tip #1 – Set Up a Website

Gold Buying Website

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What do people look for when deciding to do business with you? Your professionalism will set you apart. Get a well-designed website and fill it with information that will set customers’ minds at ease in dealing with you. Make sure the writing is free of grammar and spelling errors and looks like a reputable place to do business. The website will serve as your portal where customers can contact you.

Tip #2 – Start With Jewelry and Bullion

Gold Jewelry

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Some beginning investors think only of gold coins, but there is a lot of potential in bullion and jewelry that gets overlooked. Online auctions are a great way to find these pieces. Craigslist is another resource. Craft well-written ads stressing the benefits of selling gold and how much money customers can make. Reference your website in the ad to look like an established business.

Tip #3 – Calculate Your Minimum Investment

Calculate Gold Investment

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A good starting point is $1,000. Less than this really isn’t worth your while and more is risky if you don’t have enough cash on hand. Build at a reasonable pace, growing your gold investments without sacrificing your financial status. Many gold buyers are able to accumulate substantial gold holdings for just a few hundred dollars at a time.

Tip #4 – Get Gold Testing Equipment

Gold Testing Equipment

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Before buying gold, you’ve got to know that the gold is real and how pure it is. Gold testing supplies aren’t very expensive, and are far less costly than paying full price for fake gold. Learn to use your testing equipment before making any transactions. Start by testing the gold in your own jewelry box and pieces from friends and family until you get the hang of it.

Tip #5 – Be Willing to Travel

Travel to Buy Gold

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When buying gold online, it’s impossible to test the gold and price it properly over the Internet. If you find someone online that you’re willing to do business with but isn’t comfortable with online transactions, you’ll need to meet with them to test the gold and make an offer. Make sure the expenses of the trip are worth the amount of gold you’ll be getting, and make an offer that helps compensate you for your fuel costs and other expenses.

Making All These Gold Buying Tips Work for You

Gold Buying Tips

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The bottom line in gold buying is to buy at the lowest price possible. Since so many people in this economy are struggling, it’s easy to find people with gold they’d love to turn into cash. Some gold buyers keep all of the gold, some resell the gold at a profit and others send it to a refinery. Decide whether you’ll hang onto most of the gold you buy or turn it over for a huge profit. The potential is endless.

Tracking 2012 Gold Prices

As 2012 comes to a close, many people are thinking about the best way to improve their finances for the new year. Investing is a popular option, especially with tax returns arriving in the near future, but there are several places to put your money.

Why Gold Is a Good Investment

Gold Investment

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Many financial advisors recommend stocks over purchasing gold. Stocks have high return potential, but stock prices constantly fluctuate and are one of the riskiest investments to make. Gold prices, however, are extremely stable and have been steadily on the rise for more than a decade now. This consistency promises a worthwhile profit for gold investors. It’s a smart decision to put at least part of your investment income into gold.

The History of Gold Prices

Gold Prices

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Benchmark pricing standards for gold came into being nearly 100 years ago in September 1919 in London. In the US, the afternoon fixing of gold prices began in 1968 to serve American traders. Over the past 4 decades, fluctuations in price have been normal.

  • 1970 to 1980: Gold prices steadily increased during this first decade in the US market, peaking at a high of $850 per ounce on January 21, 1980.
  • 1980 to 1999: The next 20 years were not as encouraging for gold investors. Prices steadily dropped, hitting a rock bottom low of $252.90 on June 21, 1999.
  • 1999 to 2001: Known as the ‘Brown Bottom’ period in the gold market, this short amount of time marked the end of low gold prices and the beginning of a lucrative opportunity for investors.

Gold Prices in the New Millenium

New Gold Prices

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After bottoming out in 1999, the price of gold has steadily increased since the turn of the century. Unlike the stock market or oil investments, gold prices increased by more than 300% since 2000 and continue to climb. In early 2008, investors enjoyed a new high of $865.35 per ounce. Just two months later, the price jumped again to $1,023.50 per ounce. The price of gold continues to rise.

  • December 2, 2009: Gold prices surpassed $1,200, closing at $1,215.
  • March 1, 2011: Gold prices closed at $1,432.57 per ounce.
  • August 23, 2011: A record high of $1,913.50 was set.

2012 Gold Prices

2012 Gold Prices

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Investors were not disappointed with gold prices in 2012. Prices never met the astounding benchmark of the previous year, but gold has not closed at less than $1,500 per ounce on any given day this year. Since early September, gold prices remain steady, averaging around $1,700 per ounce. Financial analysts see a trend in prices that compares to the large increase the market experienced in 2009. According to this trend, gold prices will not fall below $1,760 per ounce and are projected to increase to a lucrative $2,400 high by the summer of 2013.

With trends like these and a stability the stock market could never offer, there’s never been a better time to start investing in gold. Buying gold in 2012 promises to yield excellent returns in the short-term future.