TIPS ON BUYING AND SELLING GOLD
5/10/2008
The price of gold soared to a record high of $1000-an-ounce in August, 2008, fuelled by a weakening American dollar, strong demand and the rising cost of oil. By some estimates, gold is forecasted to hit $1250-an-ounce before the end of the year. The current (November) economic forecasts of a global recession could put this number in doubt.
Demand for gold has surged this year as investors seek out safehavens for their money in the wake of the credit crunch and market turmoil.
It has also become cheaper for foreign investors as a result of the falling American dollar which has crashed against currencies around the world.
With the value of gold skyrocketing this year, the increase has sent people to their jewellery boxes to ferret out single earrings and little-worn novelties, along with the bigger items: pieces whose sentimental value just is not enough to trump their actual value.
If you have plans to buy gold, dealing with a reputable jeweller or jewellery store is imperative. Furthermore, if you have plans to buy gold for the purposes of adding it to your portfolio, ensure you are dealing with a duly registered investment advisor or firm.
The Better Business Bureau provides the following BBB Tips to both safeguard and educate the public with regard to selling gold.
TIPS FOR SELLING GOLD
- Check your jewellery box for scarcely worn items and things you do not want. They can be worth more than you might think.
- Your jewellery may be stamped, “14-Karat” but that does not mean it is gold. Some necklaces can have catches stamped as such, but the number alone means little.
- For an appraisal, if possible, go to someone you know and trust by checking with the Better Business Bureau. Have others reported issues with a particular jeweller or jewellery store? Visit the BBB’s website to “investigate before you invest”.
- Get an appraisal at a jeweller’s, not a jewellery store. The difference is that there is more likely to be someone who knows how to properly evaluate gold at an actual jeweller’s.
- If gold is worth $930 per ounce, you aren't going to be paid $930 for every ounce of gold you have. The ounce quote is for pure gold only. 14-Karat gold is composed of just 58.5 percent gold. The lower the karat, the less the gold content.
- Don't let anyone steal your diamonds from gold pieces. Single gold stud earrings might be worth $5 or $10, yet diamonds in the earrings can be saved. Some are too small, and the labour to remove them might exceed their value, but engagement ring diamonds, for example, should be given a value separate from the gold.
- Gold pieces with less color, or fewer stones, are worth more. A jeweler must break the stones out before the item goes to the refinery.