To Sell Gold and Silver Or Not?
It Can Be a Risky Endeavor Worth Taking if you Follow These Steps:
Precious metals are in high demand, so ensure that you sell gold and silver effectively. There are gold and silver stores that want you to buy and sell to them at every location of convenience in cities worldwide. These stores are trying to make the process of selling and buying gold and silver easier for the consumer. However, the process can be risky if you are not well-versed in the business.
1st step: Comparison shop when you sell gold and silver. Pawnbrokers are in business to buy and sell gold and silver and many other items of value. One of their main jobs is to give estimates on value, even if you don’t buy. So, shop around and get an idea of what the going rate is for your gold and silver. You can also check out websites online that will show historic rates, so you can get an idea of what gold and silver have been going for in the past and determine if you want to wait to sell. There are also websites that can search brokers by state, to narrow down your in-state options.
2nd step: If you are buying or selling in person, check the shop’s credentials. Legitimate places are licensed by the state to sell and buy gold. If they are working by the book, they will also ask to see your ID to ensure there are no shops working in money laundering schemes. If you are selling online, make sure to read the fine print. Many brokers will buy your gold and pay for the shipping in pre-paid envelopes. However, when and if you decide to not accept their offer, they will have a very high shipping charge to return the gold and/or silver. Also, there is a possibility of the property being misplaced or stolen in the mail. Make sure that the broker has legitimate insurance and not limited liability. Sell gold and silver safely.
3rd step: Watch out for fly-by-night shops that pop up in hotel conference centers. These traveling businesses come into a city and buy the gold and silver for pennies on the dollar of traditional brokers. If there is a business coming into town, check with the Better Business Bureau and see if there are complaints on the business for selling and buying practices. It is hard to track down these types of businesses if you have any concerns. Be careful who you sell your gold to as well.
4th step: When you find the proper shop to sell gold and silver, make sure to watch the scale. Most gold brokers measure their gold by the Troy ounce, while others measure by the pennyweight. Pennyweight is equivalent to 1.555 grams. One of the scams in the gold market today is to weigh in pennyweight and then pay by the gram, so ensure this doesn’t happen to you. If it does, you will be getting paid less for your gold and the broker will be making money.
5th step: Be aware of what you are selling. If you purchased your ring from a jewelry store, then you know it should be real gold of a certain karat. If you have a family heirloom, you may want to have it further investigated. Sometimes, the value of the item is higher if the item stays in its original form than if it melted down. Also, do not mix karats when melting metal as you will lose money by mixing. Understand the different levels of gold as follows: 14-karat is 58.3% gold, 18-karat is 75% gold and 22-karat is 91.6% gold. For silver coins, anything post-1964 is not worthy of selling. However, silver coins prior to 1964 are worth 22-25 times the face value, depending on your broker.
Whatever you choose, make sure you research your investment prior to the transaction. Some items will be a great value and other items may not be. If any of your items hold sentimental value, consider holding onto them for future generations. The future of selling gold and silver may become even more prosperous as time goes on.