Using Gold To Diversify
While golds price can be volatile, gold prices tend not to move in tandem with stock and bond prices. And, in fact, during financial calamities when investors flee the stock market, gold prices often rally.
When the S& P 500 fell around 30% between November 2008 and March 2009, the price of gold was up by about the same amount.
This makes owning some gold, alongside stocks and bonds, a way to diversify your investment portfolio, smoothing your overall returns. Just keep in mind financial advisers typically dont recommend investing more than about 10% over your overall assets in gold.
Why Buy Gold Bullion
Gold has been used as money and a long term store of value for thousands of years. When you buy gold, you are buying one of the world’s most stable assets.Gold is a traditional safe haven investment and a perfect way to diversify your portfolio.Gold prices typically move independent of stocks and financial markets, which means that if the stock market goes down in value, gold generally will rise.Physical gold and silver are the only assets that are completely free of counterparty risk, and have historically held their purchasing power.Central banks, institutional investors, and retail investors/collectors invest in gold, which provides the durable demand, enabling gold to retain its value in the future.
Factors To Consider When Buying Physical Gold
If you decide to buy physical gold, youll want to keep a few things in mind:
- Storage: Physical gold requires a secure storage location. While you can certainly keep your gold at home, many investors prefer a custodian. Make sure you research secure options for storing your gold before you buy it, and keep in mind that safe storage adds costs to your gold investment.
- Insurance: If you decide to store your gold at home, you should insure your gold to protect yourself against theft or natural disaster. This can add to the cost of your homeowners or renters insurance. And even if you dont keep your gold at home, youll want to check in on your storage providers insurance policy to determine how its protecting your investment.
- Manufacturer: Because youre making an investment, youll want to make sure youre buying from reputable sources that will help your purchases value grow over time. When buying gold, look for respected producers like Credit Suisse, the Perth Mint and the Royal Canadian Mint.
- Purity: The gold content in the coin, bar or piece of jewelry has a big impact on its value and worth as an investment tool. Ensure any gold you purchase as an investment has the purity level to help it stand the test of time. That means youre probably targeting gold items that are at least 91%, if not 99%, pure.
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Making Polishing And Design Charges Are Icing On The Cream
Jewelers add these charges on top of the gold rate of the ornament. These vary from INR 50 to 500 per gram of Gold depending upon the quality of gold designer.
The jeweler would save money on ornament production as they produce in bulk but charge you the amount per gram. There are rare instances when you would order a particular design/piece with your specific choice. In these rare instances, the making charges would almost double up.
If you dont believe my words, try and get a customized gold ornament from your favorite Jeweler and you would be able to testify my words.
How To Buy Gold Jewelry
This article was co-authored by Kennon Young. Kennon Young is a Gemological Institute of America Graduate Gemologist, an American Society of Appraisers Master Gemologist Appraiser, and a Jewelers of America Certified Bench Jeweler Technician. He received the highest credential in the jewelry appraisal industry, the ASA Master Gemologist Appraiser, in 2016.There are 15 references cited in this article, which can be found at the bottom of the page.wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, 100% of readers who voted found the article helpful, earning it our reader-approved status. This article has been viewed 191,752 times.
Whether you are shopping for a special occasion or treating yourself, purchasing gold jewelry can be a delightful experience. Gold is a precious metal that retains its value. It is also durable and will last indefinitely with proper care. However, buying gold jewelry can also be expensive. The price of gold varies greatly, depending on weight, karat and where you make your purchase. Because this special purchase is an investment that can last a lifetime, research your jewelry and buy wisely in order to find and keep quality pieces that will bring years of enjoyment.
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Where Can I Buy Gold Wholesale Where To Buy Gold Wholesale
You can acquire gold bullion at wholesale prices from the largest high volume gold bullion dealers like ourselves here at SD Bullion.
Again to achieve your lowest price point over the gold spot you will want to buy in high volumes and typically in the popular gold bullion products, we carry which have vast and robust secondary markets, not merely here in the USA but around the physical gold bullion trading world.
For example, the 400 oz gold bars pictured below are cast in Switzerland. Likely they represent the lowest gold price one can acquire over gold’s fluctuating spot price for those parties thinking of allocating high seven to eight dollar figures into gold bullion.
Two PAMP Suisse 400 oz Gold Bars pictured above
The 400 oz gold bars pictured above are typically the size gold bars used by governments and their central banks, as well high net worth investors and financial institutions.
Just two of these gold bars represent over one million US dollars in value currently.
The two gold kilo bars pictured below are cast in the USA and Canada respectively.
Likely they represent the next level lowest gold price one can acquire over spot for those parties thinking of allocating large dollar figures into gold bullion. Gold kilo bars are becoming the new standard for eastern central bank and gold futures market trading .
Confirm The Gold Selling Counterparty Is Legit
You must always be certain of the trustworthiness of the counterparty you are considering buying gold bullion from as counterfeit gold products from China often hurt potential would be gold bullion buyers driven only by lowest price point buying.
We only deal in bonafide gold bullion products from private and government gold mints and guarantee all the gold bullion products we sell as the genuine articles. Any and all secondary products we buy from customers are also checked and verified legitimate using various methodologies to ensure no counterfeit products are ever introduced into our gold bullion inventories. Yet still today, the vast majority of the gold bullion products we sell are newly issued.
Our suggestion: any gold bullion dealer you may consider working with we strongly suggest you confirm their latest customer reviews on hard to rig review websites like this one.
Also, be sure to dig into the Negative Reviews of any potential gold bullion dealers BBB page to see the nature and volumes of customer complaints as well how the gold bullion dealer handles any discrepancies which may occur from time to time .
Be careful if the gold seller or gold dealer you are considering has no online track record at all. If you are ever offered gold bullion at prices below spot, then it is most likely a scam in waiting.
Although antagonization may be entertaining, its probably best to ignore these potential crimes.
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Gold As An Investment
Before buying gold, it’s important to understand some of the factors that make gold unique:
- Newly-minted coins are typically 90% to 99% gold.
- Jewelry is typically 14-karat in the United States or 18-karat internationally, but other karat values can be found, all the way up to pure 24-karat
- Gold provides no income stream unless you own stocks or mutual funds that pay dividends.
- Owning gold stocks does not entitle you to possession of the metal.
- You may incur a cost to store physical gold.
- While the current supply is limited, as the price rises it makes more mining economically feasible, which could increase the supply.
- Demand is not a function of the true need for the metal, since much of it is not used for any commercial purpose other than the making of jewelry.
- Gold holdings are heavily concentrated among a limited number of governments and central banks, exposing gold to extreme price fluctuations as these institutions buy and sell.
Pricing And Quality Markings
Gold prices are determined mainly by purity. But how can you know what the purity of the meal is? Here are some tips:
- Unless you have a readily available lab or have powers of microscopic vision, look for the hallmark.
These are unique markings that are mostly found on inconspicuous parts of the item .
Some markings will indicate the karatage, which indicates the gold content, while others would put the percentage of purity. You may refer to the table below for the most common purity markings used around the world:
|
Karatage |
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Research And Understand The Calculation Of Karat
Research and understand the calculations of karat and its effect on prices when the rate fluctuates: Measurement of gold is done in terms of Karat. The purest form of gold is of 24 karats.
Gold in its original form is soft that in order to give it a proper form and shape it needs to be mixed with some base metals such as copper, nickel, zinc, etc. The higher the karat the more expensive it is so mostly gold ornaments are made of 18, 20 or 22 karat gold.
Lastly Calculate The Value Of Gold Jewelry
Ready to find out what your gold jewelry is worth? Now that youve done all the legwork, the rest is just plugging in numbers into a gold calculator or formula. Either use a gold value calculator online, or insert your values into the equation below:
Weight of gold jewelry x gold purity / 24 = Grams of pure gold
Lets break down each part of that equation to help you better understand what each value means:
-
Weight of gold jewelry: the weight in grams of your gold jewelry item. Example: you have a piece of gold jewelry that weighs 5 grams.
-
Gold purity: To accurately value your gold jewelry, you need to know how much pure gold is in each item. To calculate this variable, remember that 24 Karat gold is pure gold, and each karat value smaller will contain less increments of pure gold.
Example: You have 5 grams of 18k gold.
-
24: You are dividing by 100% of pure gold, which is 24 karats.
If we plug each figure into the equation, it looks like this:
5 x 18 / 24 = 3.75
If you have 5 grams of 18k gold jewelry, then you own 3.75 grams of pure gold. Not too complex is it? Once you break down what each value means, you can see how karatage, weight and purity determine the overall value of your gold.
Now, what can you do with this information? You know how many grams of pure gold you have in each jewelry piece, but how do you put a price on that?
Youll now need to research the…
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How To Test Gold At Home
If there is no karat marking or youre not sure whether an item is made from real gold or has been plated, there are a few simple at-home tests you can do to find out.
- Rub the item against a piece of unglazed porcelain. If it leaves a black streak, the item is made from pyrite rather than real gold. If the streak is gold-colored, it is made from real gold.
- Hold a magnet above the gold item. Gold is not magnetic, so if your item is attracted to the magnet, there are significant impurities in the metal. The low purity also tells you its not likely to have a very high karat value.
- If the item passes these two tests, you might choose to purchase a home gold testing solution from a store. These can help you get a more accurate idea of how pure the gold material is.
Keep in mind that even commercial home testing solutions are only rough field tests and cannot tell you the exact composition of your gold items. The only way you can be certain of an items purity and value is to have it assessed by a professional with access to proper equipment.
Is The Right Time To Buy Gold
Gold is a rare and finite natural resource. Logic dictates, there is no more or less gold in existence than ever has been. All the gold that has ever existed on earth still exists somewhere.
The value of gold, therefore, remains steady over the long-arch of time. But, it becomes more valuable to sell gold in a bear market. This is the reason why the price of gold jewelry and bullion might see a spike if the stock market descends.
If you haven’t already it is currently a good time to buy gold. And, you probably already have some gold in your portfolio. You can invest in gold in a few different ways, and the most common is buying gold jewelry.
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Weight Of Extras Counted In Gold Weight
Have you ever noticed that extra accessories like the small round balls or the blue/green paint etc. are also weighed and counted while gold is sold to you?
And what happens to the weight of these extra while selling it back? They are simply kept out and only gold weight is counted.
This is another area of margin for the Jeweler.
Are Their Ethical Concerns With Buying Gold
More and more investors are worried about the social and environmental impact of their investments, and gold mining can leave a significant toll on the environment and raises concerns around human rights and governance since gold mines are located in conflict-affected or otherwise high-risk areas.
In 2019, the World Gold Council took steps to implement guidelines for member companies, as did the International Council on Mining and Metals. Both require that participating mining companies publish information on their progress publicly, making it easier for consumers to find.
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How Much Is My Gold Worth
If youd like to estimate your golds value at home, first determine its weight and its karat value. Gold jewelry is typically marked somewhere with its karat value, which is defined by the purity of the gold that was used . The higher the purity, the greater the value will be.
The following are commonly used karat weights and their respective gold purity:
- 24k: 99.99% gold
- 10k: 41.67% gold
- 8k: 33.30% gold
At Cash For Gold USA, were focused on the raw value of the gold material used to make the piece in question. Because of this, our appraisals are based only on the value of the gold content and not on the aesthetic, numismatic, or collectible value of the item.
Jewelrys Gold Purity Is Hidden From Buyer
You may or may not know this but all gold ornaments that you buy are NOT made of pure 24 carat gold. Jewelry is mostly made with 20 or lower carat gold and mixing other metals. 24 carat gold is also NOT self sufficient to hold itself together for ornaments/accessories purpose.
The difference between 24 carat and the one sold to you is the trade margin i.e. difference between 24 carat and 20 carat gold rate. To be more specific, jewelers sell you 20 carat gold with the price of 24 carat.
The gold ornaments sold in USA are expected to be more pure than what you buy in India. This is the reason ornaments in USA are sold on per piece price instead of gold weight price. Did you know that you can avoid sales tax on Jewelry in USA if you buy and ship out of state.
Most of us dont check the purity of your gold jewelry while buying because we always get the buy back assurance from the jeweler. This is the biggest catch in this business. As the Jeweler who sold the gold knows its purity, he would be able to buy it back with little doubt.
Usually, the jeweler would buy back their own gold at 10-20% less than the prevalent market rate of gold at the time of buying back.ExampleCurrent Gold rate: INR 20,000 per 10 gms of 24 carat gold Polishing and making charges: INR 200 per gm of Gold
If you are buying 10 gms of gold jewelry, the jeweler will calculate the cost as follows:
| Calculation |
| Total | 18,666 |
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The Best Places To Buy Wholesale Jewelry Online
As Jewelry Shopping Guide editors, we write about things that we love and we think youll like too. We often have affiliate partnerships, and may generate some revenue from these links at no cost to you.
Purchasing wholesale jewelry online comes with its benefits you are able to easily and conveniently access jewelry from around the world at highly competitive prices. However, when looking for wholesale jewelry, finding the right vendor can prove difficult. Youre also less likely to get a recommendation for specialist websites from people you trust, so how do you know what the best price is or whether you should purchase from overseas versus domestic?
In this article, we take a look at 10 of the best places to buy wholesale jewelry online. When making our selection, we looked at how long these companies have been established, customer reviews, inventory, price points, customer service and their unique selling points.
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