Some individuals have been able to turn a profit with scrap gold in recent years, but you'll need to know quite a bit about this market before you can reasonably expect to make money.
Many people turn to gold as a safe-haven investment during tough economic times, and scrap gold is no exception. You need to know the current value of scrap gold and the present ratio of supply to demand. The price of scrap gold changes just like the gold spot price, so these rapid variations must be understood before you can buy scrap gold and sell it for a profit.
You can find the current value of gold at websites like www.Kitco.com and www.GoldPrice.net, but the “spot price” listed by these reputable companies may not be the same value that you get for scrap gold. Scrap dealers pay 10-20% less than spot price, because scrap gold requires refining and processing before it matches the Commodities Exchange (COMEX) spot value.
If you plan to buy old jewelry for scrap gold, remember that most jewelry contains a significant amount of alloy that dilutes the pure gold content. Extracting pure gold from items that contain alloys can be time consuming and costly. Silver and other precious metals may be in the jewelry as well, so be sure to extract these for investment purposes as well.
If you thought that you wanted to buy scrap gold, but it is now starting to sound like a lot of work, it may be advisable to research other means of gold investing. Gold bullion bars, gold bullion coins, and certified gold coins are excellent ways to own physical gold. Contact us directly for more information on the available and advisable ways to buy gold.
Steven Martin
Senior Gold Specialist - Buy-Gold.org
