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Gold Investing: Knowing the Ins and Outs of Doing it Right

Know the ins and outsGold prices have been on the rise for over a decade which has brought a whole new light to gold investing. So many people have started investing in gold, as they know that it is a secure way of holding their money. The price of gold is not going to fall below current levels and if anything, it would only be rising. Gold is extracted in the millions of kilos and the industry continues to grow, despite the low purchase rate among customers. Gold houses, such as Kitco constantly buy and sell gold on the market at fair value, and this is why gold investing still remains to be a great business.

Jewelery stores and gold refiners are always buying gold from people because it opens up a whole new profit margin for them. Jewelery stores are now making most of their money by buying and selling gold, rather than by selling premade jewelery. Now, there are several ways by which you can get into gold investing and we will be looking at some of the best methods to go by.

If you are going to be purchasing gold for investment, you should probably do so from people rather than shops. When you purchase actual jewelry, the store would factor in the cost of the gold and its proclaimed labour. In order to avoid labour costs, you should focus on purchasing used gold and scrapped gold, as this still has the true market value. When you purchase gold from someone, you will have the say in price, which allows you to maximize your profit margin. You don’t necessarily have to sell the gold after buying it, as you could keep it and wait until gold prices rise.

IMPORTANT NOTE: One of the biggest factors you have to look into when buying gold is fraudulent gold. Whether you are buying scraped gold, jewelry or gold coins; you need to make sure that it is indeed 100% gold. There have been several cases where people have sold worthless metal that has been gold plated on the outside. To avoid this, you need to invest in a solid gold testing solution. There are two ways that you can test gold, either by an electronic gold tester or a gold testing liquid. The electronic device would run you about six hundred dollars, so you may want to settle for a liquid tester for the time being.

Once you have tested the gold and have seen what karat it is; you would be able to provide a price on the amount of gold you are purchasing. The cost of gold will vary depending on the karat, because they are not valued at fair market value. The gold price you hear on the market is for pure gold, which is 24K and it is also the most expensive variety of gold. Investing in gold is a great opportunity for someone who has the money and means of doing so. Similarly, if you already have gold that you purchased long before; it could still be used to generate profit, as you could sell it for a much higher price than what you paid for it.

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