Buying gold and other precious rocks can be a good investment. You just need to know the basics to maximize your profits. Knowing the value of what you have is important. Be familiar with the different types and how you can sell it. Experienced jewellers all over the country said it best, timing is everything. To help you out, here’s how to cut the learning curve:
Never buy too much
While gold can be a good investment, it is important to take things slowly especially if you’re just getting started. Keep in mind that there’s always a risk, but you can be wiser with your decisions. Do your research. Read reviews. Consult a professional. Know when and what to buy. Take note that gold is not the perfect inflation hedge that most gold dealers want you to convince. It correlates more closely with assumed or perceived disaster or uncertainty than it does with actual inflation.
Check the purity
Never get anything without checking the purity of the item. Some gold coins are 90% pure—the higher the purity, the softer the end product and the more valuable it is. Choose the highest purity you can afford. Here’s a summary to guide you:
- 24 Karat is pure gold.
- 18 Karat has 18 parts gold and 6 parts of one or more additional metals, making it 75% pure.
- 14 Karat has 14 parts gold and 10 parts of one or more additional metals, making it 58.3% pure.
- 12 Karat has 12 parts gold and 12 parts of one or more additional metals, making it 50% pure.
- 10 Karat is the minimum containing 10 parts gold and 14 parts of one or more additional metals. It is 41.7% gold.
Many investors had bad experiences from different firms. Avoid making the same mistake. Do your research and make sure to check the credibility of your dealer. Get more recommendations from your colleagues. Browse their website and read testimonials about their services.