In August 2011, gold prices hit a record high, surging past the $1,800 per ounce mark. There were reports by investment analysts estimating gold prices to climb to $2,000 per ounce by the end of the year. The soaring prices did not deter investors in the yellow metal, as expectations were still bullish. Buying scrap gold was also one of the avenues considered by investors to reap the benefits of the surging market.
Tips for Buying Scrap Gold
Since the time cash-for-gold schemes were launched, people have increasingly considered buying scrap gold. Here are some tips that may help you in purchasing gold scrap:
- Deciding investment value: Buying scrap gold for selling is among the safer investments in a challenging economy. It is a good idea for novice buyers to begin with a minimum amount. The minimum can be as low as $50. Buy your first lot with little money, so that you limit your risks while you gain knowledge about the market and learn the tricks of the trade. With time, you will gain confidence and be better prepared for making larger investments.
- Use a digital scale: Selling gold scrap does not require any special knowledge. However, you should know how to use a digital weighing scale. You can buy your own scale, since it costs only a few dollars.
- Check online auctions: While there are local shops that one could visit for selling and buying scrap gold, most people prefer the online medium for trading. This is because one can make profitable deals by participating in online auctions.
- Collection of gold scrap: You can also consider buying gold items from your friend and family members. You can purchase broken necklaces, missing pairs of earrings and other such items that cannot be used anymore. In this way, you can probably pay less than the market price to buy gold according to the weight of the yellow metal.
- Use of advertisements: There are many sellers who advertise in local newspapers for selling gold. There may be people who wish to sell precious metals such as gold, silver and platinum to pay off their debts. Since such sellers may be in urgent need of cash, you may be able to strike a profitable deal. However, you will need to identify sellers who appear genuine, as you may not be able to differentiate between pure gold and gold alloy.
Buying scrap gold is not difficult, but it needs you to be careful. The safest way to sell and buy gold scrap is via a reputed online platform. You may check the clientele of the platform to make a decision regarding its authenticity.