When you invest in gold, if you get the timing right you can cash in and make quite a substantial profit.
Image by Mark Herpel via Flickr
Gold is the same as any other commodity, and to maximise your profits you need to buy it while the price is low, and sell it when the price is high. Saying and doing this is easier said than done, as the price of gold does fluctuate on a daily basis. There are many different factors that affect the price of gold, and even experts on the subject have difficulty in predicting what will happen to the price with any great accuracy. Traditionally the trend is for the price of gold to go up, but this is not always the case.
One thing that you want to make sure of is that you do not have negative equity in your gold. What this means is that the value of your gold is less than the price you paid for it. Many people were left with negative equity when the price of gold dropped in August 2011, from its height of almost $2000.00 per ounce. Many people hoped the price would rebound to minimise their losses, but almost four years later, they are still waiting!
Cutting your Losses
If you have negative equity, then you are going to be left with two choices. You can keep hold of your gold and look at it as a long-term investment. The other option is to go to one of the many shops and sell gold bullion in Melbourne. Cut your losses and sell your gold for as much as you can. It is hard to take a loss sometimes, but if the price is falling it is best to take as small a hit as possible.
Getting the Best Price for your Gold
The price of gold is pretty universal, with all of the companies buying gold at the rates that are dictated by the market. The biggest difference you will find between all of the different companies is the commission that they charge. The difference in the different commissions charged is not usually massive, but if you are selling a large quantity of gold, the cost can soon mount up. It would also be rather silly to lose more money that you have to, especially if you have negative equity! You have a choice of different types of places where you will be able to sell any of your surplus gold, relatively easily.
- Pawn Shops
- Private Sale
- Gold Merchants
- Internet-based companies
Before you sell your gold, it is going to be worth your while contact all of the local companies near to you, and compare the commission rates that they charge. If you sell to a private buyer, then you will not have to pay any commission, but it is not always easy to find a buyer, especially if you need to sell quickly. Internet-based companies may offer the best rates, but you also need to take into account the cost of sending your gold to the company, if they do not have an office close to you. Whichever way you decide to sell your gold, you can have some cold hard cash in your hand relatively quickly, and hassle-free.