4 Issues to Avoid When Buying & Selling Gold
Investing in gold, silver, coins and other precious metals is a smart investment for individuals that provides financial security during economic uncertainties, but there are several issues to avoid when buying gold. Inexperienced gold buyers and sellers can make short-sighted mistakes that can cost them dearly. Failure to do due diligence and prepare for your investment choices could lead to a financial problems. Too often, inexperienced gold investors jump into bad deals with dishonest brokers and sellers.
The team at Jewelry & Coin Exchange doesn’t want to see this happen to you, so we have made a list of mistakes to look out for. Here are four issues to avoid when buying and selling gold.
- Not Exploring the Different Types of Gold Investment Options
Many new gold investors choose to buy physical gold bars or bullion coins. When securing your future with precious metals, it’s important to understand the variety of products available.
Certified investment-grade coins
For universal, undisputed value, certified investment-grade coins ensure pricing consistency and guaranteed authenticity. Graded coins have been certified by Professional Coin Grading Services and Numismatic Guaranty Corporation, the two largest grading companies in the United States.
Gold bullion coins and bars
Gold bullion coins and bars maintain a purity of at least 99.5% and have a wide variety of weights and sizes, ranging from 1/10 oz. coins to 1 kilo bars. Popular bullion coins and bars include Gold American Eagle coins, South African Gold Krugerrands, and various sizes of gold bars. These items are appreciated for both their aesthetic value and precious metal content. If you choose to invest in collectible gold coins, choose premium investment grade coins to satisfy your enjoyment of coin collecting and to provide you with economic protection in the long run.
- Failing to Learn About the Logistics of Gold OwnershipIf you wish to buy gold bullion bars or coins, you need a secure place to store your investment. A safety deposit box at your bank is a good storage method if you are not worried about having constant, instant
access to your gold.
Alternatively, you could install a safe at your home to store your gold and other valuables. There are several storage options to consider, including:
Bank deposit box
Each option has its share of pros and cons, and you will need to weigh your options carefully to secure your investments.
3. Misunderstanding How Gold Prices Work
The price of gold changes constantly. The price of gold at any given moment is called its spot price. The spot price of gold is calculated by averaging out prices from professional gold brokers and traders around the world. In addition, some states charge sales tax on precious metal purchases, which can have a significant impact on your final bill. Jewelry & Coin Exchange’s home state of New York charges tax on precious metals, whether you buy from us in-person or if we ship your gold to you out of state. Per New York State law we only charge sales tax on purchases under $1000. Any bullion bought over $1000, we do not charge sales tax. When you sell your gold, you will generally sell it at around its spot price at that time. Remember, gold prices are constantly fluctuating.
4. Failing to Work with a Trustworthy, Reputable Company
There are a lot of scammers out there who make a fortune by cheating investors out of their wealth. Beware of any dealer who attempts to pressure you into buying or selling by using scare tactics. Why buy and sell your Gold with Jewelry & Coin Exchange? The team at Jewelry & Coin Exchange is committed to 100% customer satisfaction. Each of us is experienced and knowledgeable in the buying and selling of precious metals. We are committed to educating our customers about precious metal and providing reliable advice that helps each and every customer. We are more than equipped to help you dodge these common pitfalls when buying gold and selling gold. Call Jewelry & Coin Exchange today at (585) 227-6370 for a free expert consultation.