Buying and selling gold for profit!
In some countries, buying gold is almost a necessity. Consider India, where people accept only one ultimate sign of wealth: the weight of gold one carries on his or her body, and has stored in the house treasure chest. Similarly, some Far Eastern societies keep gold and other precious metals in very high esteem, and prefer to deal in it, when settling large transactions.
This is nothing really new; for millenniums humans used gold as the widely recognizable currency. Any while citizens of the highly developed countries prefer to used credit cards and bank transactions to do their finances, many others still rely on buying and selling gold for their commercial activities.
Buying gold may not make you rich; but selling what you have just might. Do you have pieces of expensive gold jewelry that you no longer wear? Are those rings, necklaces, earrings and bracelets languishing in your jewelry box, or in a dresser drawer? It’s probable that these pieces are made from low-karat gold (9K to 14K is most common). Be aware that their essential value is determined not by the gold they contain, but even more by the work of the jeweler who made them, with the store’s markup added as well.
When you see an ad for a dealer buying gold, and decide to sell whatever jewelry you no longer enjoy, it will most likely go as “scrap”. You may be shocked to see that the price you receive from the dealer who is buying gold is only about 25% to 35% of the original purchase price. You haven’t gained a thing by owning your golden hoard; in fact, you have lost money. That is certainly not the best way to make your fortune from buying gold!
Buying gold a sure way to the riches?
Buying gold won’t make you rich. But, owning this precious metal will. This seemingly obvious truth escapes many people who buy expensive gold jewelry, as dictated by the latest fashion, and after a month or so, throw it in the bottom of the jewelry box. Not only are these gold bracelets, necklaces, rings, etc. usually made of the low karat value (9 to 14 karat is the norm). More importantly, their intrinsic value is not that of the precious metal, but the jeweler’s work, with the fashion store mark-up added on top of it. Worse still, when you see newspapers’ ads by dealers buying gold, you’re the first to ring and sell whatever has lost its luster. And, because the price you get for your scrap is in the vicinity of 25-35% of the purchase cost, you’ve lost money. That’s not the way to go about buying gold!
When you realize why and how some people are buying gold, you may be interested in following their tracks. For there are great riches to be had, if you follow the right advice, and decide to take action.
If you have some excess funds you want to keep safely, nothing beats the idea of exchanging your dollars into the gold metal treasure. Even better, speculative investing in gold may deliver you good returns with the added benefit of security. Nothing performs better than gold and its stocks in time of political uncertainty. Why? Because everybody is buying gold for its stability and world-wide recognition as a valuable commodity.
Where do you go to buy gold?
You virtually have two options: wholesale gold buying, and sourcing it from private dealers. The first option is not really opened to the majority of people. There are minimum quantities involved, starting at 400 troy ounces. Even if the price was only 600 per ounce, you’d have to pay $240,000 to become a wholesale buyer. Gold Exchanges and banks in each country keep stocks of gold bars, bullion and ingots available, if you decide to go this way…
For the rest of us, it means a few phone calls to the local gold dealers, checking their prices and placing the order. If you consider that as recently as August 1974, no American citizen was allowed to buy, sell or own gold, this is a truly remarkable opportunity.
