Why You Should Invest In Scrap Gold This Year

Why You Should Invest In Scrap Gold This Year

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Historically, investment in gold has been one of the few proven methods of preserving value. When a national currency loses value, investments held in the depreciating currency will also decrease. However, many people are turning to gold investment as a way to weather economic storms. This article will talk about why you should invest in scrap gold this year.

According to a recent report from Trinity College, all investors should have some gold in their portfolio. However, most investors do not realize the value of investing in scrap gold. This is one of the least publicized areas of investment. In order to give a basis of understanding, scrap gold usually refers to old and broken jewellery. This can be gold that has been extracted from computer chips, or gold that has been used in electrical appliances. Generally, extracting gold from both computers and appliances is a painstaking process so it’s generally more valuable to focus on scrap gold jewellery.

The main advantage of investing in scrap gold is that it’s easy to get it at a spot price or even sometimes even under the spot price. One example is purchasing a 3-gram ring made of 14-karat gold. If the ring is slightly tarnished, missing a jewel, or simply damaged, a buyer can purchase this ring fairly cheaply, as the jewellery owner will not see the value in repairing the ring. However, a gold item of the same weight will cost twice as much. Buyers who are willing to purchase gold from antique jewellery dealers and can identify high-quality gold in broken or damaged jewellery will be able to purchase this gold for a very low price.

Investing in scrap gold also makes selling an easier and less expensive process. When owners sell the scrap gold jewellery, it can be classified as jewellery and not as gold bullion. This means that the owner will not be liable to pay a higher rate of tax which is applicable to gold bullion, resulting in a higher portion of the profits retained from the sale. Although it may be slightly more difficult to sell scrap gold than gold bullion, this is well-worth the time of the investor in the long run.

In order to invest in scrap gold jewellery, buyers should always verify the authenticity of the purchased items. Since gold jewellery is a mixture of pure gold and other metals, the karat value indicates that amount of pure gold. This amount will be stamped somewhere on the jewellery and ranges from 10K to 22K. You should avoid purchasing items which are electroplated or rolled plated and are not valued as an investment. Finally, when in doubt in regards to the value of the item, work out the value of the gold. There are multiple scrap gold calculators available online which will calculate the current value based on the going gold price.

These are the main reasons why investing in scrap gold is a smart choice. Not only is gold resistant to fluctuations in the economy, scrap gold offers a less expensive way to invest.

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