The Myths About Selling Gold
The gold market has long been subject to myths and legends and far more so than many of the other investment vehicles traded daily, worldwide. The reasons for this are wide, contested and varied, but seem to be related to gold's ancient value and great historical and social context. It also has to do with a tendency for new investors to rush into buying gold to beat the current economic climate and finding themselves making rookie mistakes!
Myth One: Buyers Know How to Appraise Gold
One for the traders and sadly not true. Most online buyers of gold today are new to the business. Many have flooded into the market as savings rates have plummeted in the economic climate, seeking ways to maintain and grow their assets. This means that many buyers are inexperienced and prone to error. For experienced investors, this offers opportunity but also can lead to frustrations when dealing with new traders. Anticipate that new gold buyers will not have certifications in gold appraisal or any valuable experience in the field. They will be highly unlikely to have the skills required to accurately value your gold or any gemstones held within it. In such circumstances, the involvement of a professional is vital, to instil trust in the buyer, facilitate the trade and make sure you can complete the sale quickly and efficiently. To get the best prices for your gold, bring in the experts and trade with other experienced traders.
Myth Two: The Gold Purchaser Will Simply Mail Me a Cheque, Like They Promised...
A myth for new gold sellers; this is a scam in the making. If you are selling your gold, as a new trader, there are a huge number of gold buying businesses that have sprung up, all promising you the best sums for your gold. You send in your gold and receive a disappointing cheque. Mistakenly, you may think this is the best you can do and let the matter go, in some frustration. However, there is recourse in this situation and you should contact the gold buyer immediately and request either the return of your gold or a better price for it. You may find you can negotiate a better price, or at least arrange a refund so that you can sell your gold elsewhere, with more caution. In future, ascertain the price you'll receive for your gold beforehand and take it into a gold buyer physically if necessary. For valuable gold jewellery, get an appraisal from a professional valuer. Also, check that any gold buyer you deal with has a guarantee policy in place that you can adhere to for peace of mind.
Myth Three: I'll Have to Pay for Gold Appraisal
No, you don't need to. Gold evaluations are usually free, so if someone tries to charge you, simply go elsewhere. Ideally, don't just pick a gold appraisal business from the street either; seek out recommendations and go to those who are held in high esteem and who hold visible professional accreditations in the industry.
Myth Four: The Older My Gold Coin Is, The More It Will Be Worth
Certainly, rare gold coins are worth more than their basic money equivalent, but you may find yourself disappointed by what you receive. The price for gold coins is set by a variety of factors. These include the condition of the gold, its rarity, the demand for the year and type of coin, its component metals and their value and also the supply and demand forces present in the market at the time of sale. Always look to sell your gold coins to a specialist gold coin dealer, rather than say, a pawnbroker. This will get you a fair appraisal and a better sum for your sale.
Myth Five: Price Guides Will Tell Me What Gold Is Worth
It's true that price guides were once fairly reliable. However, gold prices have soared recently and published print guides may well be out of date. Use online sources from reliable websites that are updated daily. Remember too that all sales prices are negotiable, so bargain hard when selling your gold!
Myth Six: Cleaning This Gold Coin Will Make It Shinier and Therefore More Valuable
Leave your gold coins or bullion alone if they are tarnished! Soaps and scrubbing are hugely damaging to pure gold, which is very soft, so avoid damaging it and leave it be. Pure gold can be damaged by placing it in water or even using cotton pads on it, as it's so malleable. Professional coin dealers will look at a coin and determine whether it's been adulterated, scrubbed, dipped or washed to make it look better. Inexperienced gold buyers may purchase coins thanks to their golden glow or sheen and then realise that this cleaning has devalued it. So, be very careful!
Myth Seven: The Gold Market Will Keep Rising
Don't believe this, as gold is believed to be overvalued now by many market analysts. It has become overheated for a number of economic factors, not least the terrible rates available to traditional savers, who would previously not have thought of investing in gold or other precious metals. So, proceed with caution and remember to diversify your portfolio at all costs. Putting all your eggs in one basket is a recipe for disaster, especially with the market being so highly valued and the world's economies being in a rapidly changing and precarious state. This is especially the case if you are looking for short-term gains. Consider holding your assets in a range of funds, derivatives, products and vehicles to spread risk and help to build a balanced, long-term portfolio.
These are just some of the many myths that circulate about gold. The legends and folklore surrounding this fascinating precious metal change and develop all the time. For investors, the message remains the same; get the fundamentals right, have a strong clear strategy in place, make decisions based on objective information and rationale and keep your portfolio balanced. You will reap your rewards in the longer term and find the experience of gold trading to be both profitable and enjoyable.
