With the trend in the gold market over the last few years showing a distinct drop in price, many people are taking a new look at gold as both an investment and a source of revenue. These two goals require considerably different tactics though, so it's important that you recognize your options and what resources are available to you. Making smart use of your money will ensure that you stand the best chance of maximizing the profit potential of every transaction.
Finding Cheap Gold
Turning scrap gold into hard currency isn't the same as investing in a commodities market, though there are similarities. Start your hunt with estate sales, yard sales and moving sales, where people are often looking to either clean out their homes or unload unwanted items for a quick buck. Virtually anyone offering jewelry of some kind probably has at least one or more gold necklaces, rings or bracelets that can be sold as scrap gold.
Regardless of where you find scrap gold, be discriminating and look closely at each item. You should be able to find a jeweler's mark or engraving that tells you what karat value the item has, from 8 to 24. Necklaces and bracelets will have the mark on the clasp, while rings will have their mark on the inside of the band, giving you a starting point for determining the value of the item.
Use Your Tools
Familiarize yourself with tools available online to track the prices of precious metals. These tools will help you identify trends, spot ideal buying and selling prices, and stay informed of the current spot price of gold. Having this information on hand will make it easier for you to determine how much of a profit you stand to make on a given purchase and when to walk away from a bad deal from a potential gold buyer.
Since most of your individual transactions at this level will be relatively small volume, focus on the price per gram rather than per ounce. Not only will this give you a more accurate unit of measure, it will help you avoid tricky math later on when you go to sell an item. Be aware though, when selling gold, you should expect offers below the spot price, and these offers can vary from one buyer to the next. With that in mind, it pays to call around to a few buyers in your area to find out who is paying the closest to the current spot price per gram.
Buying cheap gold jewelry and selling it off as the price climbs back up is an effective way to turn a little legwork into a solid source of income. If you're aware of the tools at your disposal, and the opportunities for inexpensive purchases, you can stand to turn a quick profit with minimal effort on your part. Contact a company like Revell JH Jewelers And Goldsmith to get started.