You may have noticed a sudden surge in businesses asking you to turn your old gold jewelry in for cash. You may have also seen online ads asking you to buy gold bullion. Perhaps you are simply curious about buying and selling gold but you don’t know where to start. Here are some common questions beginners ask about buying and selling gold.
Selling
Q: What kinds of gold can I sell?
You can sell any type of gold you own. Gold jewelry and gold coins are the most common type of gold to sell, but dealers will take any type.
Q: Is it okay if my gold jewelry is broken?
Broken jewelry is fine. You are selling the gold based on its weight and purity--which does not change when the jewelry is broken--not on its aesthetics or usability.
Q: How do I know if I’m getting a fair price?
You should expect to receive between 80 and 85 percent of your gold’s assay value, or the value the gold would have if melted down. This amount will likely not be the same amount you paid for the gold, especially if you are selling jewelry, because the price of jewelry depends on more than just the amount of gold it contains.
Buying
Q: Why should I buy gold?
Gold is the only currency that has never failed. It does not depend on another’s ability to pay you (such as is the case with stocks and bonds) and it doesn’t fluctuate the way the dollar does. Gold is a safe and easy investment, and it is likely to give a good return on your investment. Gold is like insurance; no matter what happens to the U.S. economy, if you have gold, you have wealth.
Q: Where can I buy gold?
There are numerous places you can buy gold, including websites such as goldsilver.com and www.apmex.com. Before you buy, though, make sure that the company you are buying from is reputable. Check the Better Business Bureau to see how long they have been in business, what kind of rating they have and if there have been any complaints filed against them.
Q: What is gold bullion?
Gold bullion is gold that is valued based on its weight and purity, not aesthetic factors. If you choose to buy gold bullion, there are two main choices—coins and bars. Coins are great for beginning investors because they are smaller, more versatile and easier to liquidate quickly. Bars are better for experienced investors who want large quantities of gold.
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