Make Money in Gold and Jewels with these Ideas

Any savvy investor needs to have commodities as part of their total investment portfolio. Gold tends to be the number one commodity to invest in. Should you choose to collect gold in the form of secondhand jewelry, you’ll likely be dealing with diamonds, as well. From building a retirement nest egg to making beer money, this article will help you achieve a financial goal.

It is easy to get great deals on gold jewelry and diamonds online and at pawn shops. Spending a little time looking through local shops could end up being a literal gold mine. You never know what you might find priced to sell quickly.

When buying diamond jewelry, for example, engagement rings, studs, accessories and wrist trinkets, knowing the 4 Cs of diamonds is critical. The 4 Cs are: Cut, Clarity, Color, and Carat. A few diamond setters likewise get a kick out of the chance to include a fifth C which is Certificate. Certificate is a grading report about the specific diamond quality. Knowing the 4 Cs of jewels will better prepare you for recognizing true quality.

Young woman holding engagement ring

If buying a diamond in a shop, make sure that you understand what kind of stone you are purchasing. Do not buy a stone based on seeing it against a black or dark background. This is a seller’s ploy to making it appear more attractive to your eye. If you look at it under magnification, you will get a truer view. When buying diamonds, watch out for the practice of deceptive lighting. These halogen or quartz lights can really make stones appear much brighter than they are.

Just be careful and don’t get in too deep as a beginning gold investor. You can lose money if you are not sure how to invest. Gold isn’t an investment you try and time. You should instead think of it more along the lines of wealth insurance. If you’re going to figure out the timing perfectly, buy when the gold market is quiet. Gold shortages are common when the economy is booming. Gold is usually a popular investment if you can afford to buy and hold for a long-term money making opportunity, but avoid borrowing money for gold investment.

Don’t purchase gold with a high premium. Look for low premiums so you can make a good return back. Don’t purchase gold from someone who is a cold caller. Many times solicitors are identity thieves trying to steal it from you. Never give these folks any personal information and get rid of them as quickly as possible.

Dollar cost averaging should be followed if you are investing in gold and jewelry. If you invest a fixed amount of money in jewelry every month, even if it’s pricier, you will even out your risk exposure over your investment period and get a better return.

Look for gold that is overpriced. You should find out what the going rate and try finding a close price match. You should expect to find some high price spreads that you can compare prices offered by different sellers.

Keep an eye on the price of gold and diamonds prior to unloading your items. You have to wait until the market is favorable for selling. This should entail you having a greater understanding of the fluctuation that occurs in gold and jewel prices. It’s a good idea to monitor the market closely before selling. Monthly and weekly gold price charts are great for analysis. Using both of the charts can help your research be more comprehensive.

If you decide to take any scrap gold or jewelry to local places that pay cash for gold, check out more than one.

If you think you’re going to mail off your jewelry, find out how much mailing and insuring these items will cost you and how much you will have to pay to have the items mailed back to you in case you do not accept the buyer’s offer. A few companies, like WP Diamonds, will pay the cost of shipping and insuring the items for you.

Photograph what you intend to mail to a gold item before shipping it to the buyer. This will ensure that you have proof of the items shipped. Take special notice of any distinctive qualities or features found on each individual item. This ought to include engravings as well as other unique markings.

engagement ring

Some companies who deal with gold out there are very reputable. Some are not. You need to do your research to keep yourself safe. Ask if they are listed with the Better Business Bureau, if they are insured. Find out what assurances they can give you. Shop around before you decide which gold or diamond buyer to use. You may be shocked to see the wide variety of offers you wind up getting! Going with the very first buyer might end up being the way to go, but you won’t know that until you visit a few.

Have all unique pieces, like jewelry with detailed craftsmanship, appraised before parting with it. While there may be a small fee, it’s worth it to increase profits in the long run. Additionally, appraisers could know of a dealer who might be interested in your distinctive jewelry.

If you can help it, don’t sell your gold on a passing whim. The value of gold increases in price over time, so don’t sell it unless you really need the money. You may benefit in the future by keeping your gold for even more later, if you hold onto it now. Gold prices are generally high these days, but current and past prices don’t tell you what the market will due in the future; there could be even higher prices ahead. If you really need to sell, then by all means do so, but it’s almost always better to wait. Remember, this is an investment, and when investing, you must think long term.

After reading this, you know more about investing with gold and diamonds. Improve your portfolio or make yourself some money by using these tips. Remember all that you learned here to keep finding success in dealing with diamonds and gold.