Be Smart When You Sell Old Jewellery

If you have bits and pieces of jewellery lying about around the house and you have been thinking about selling them there are a few things that you should know before you set out to sell them.

In most situations, gold sellers such as yourself would go to a dealer ask him or her how much the gold is worth, haggle a little and walk away with whatever you get from them, thinking that it was just extra cash that you would not have had in the first place. Well, although this may be true, what about the fact that you could have had double the amount and since the gold was yours, the money or the value that it carried should also be yours!

The most important thing to know when you set out to sell gold is its value, and these days all you have to do is just find an internet site such as kitco and you would instantly have the latest updates on the value of precious metal to the second. Secondly, you could take the jewellery pieces to the local jewellers and get a rough estimate how much lower than the market price they are willing to offer. This would give you leverage or a bargaining chip when you meet the actual gold dealers who will be taking it off your hands. Just remember when you are bargaining, that there are other willing buyers and all you have to do is go to them instead. With this frame of mind, you would be able to push your luck as far as possible and use the intense competition that these businesses face as an ally towards you getting better deals.

The usual modus operandi of gold dealers is to buy gold at a 20% markdown from market prices in order for them o be able to make a good margin, but most would be willing to settle even at a 10 % markdown when the quantity is sufficient, however your target should be 15 %, meaning if the value of the gold in your possession is $ 100, try to get at around $ 85. Another option is to sell it online and you will be surprised that there might be individual or independent buyers out there who would even pay you up to 92 % of the market value if market conditions are right for them.

However, there is an element of risk when you do business online, based on the sheer number of rip-offs that prowl around on the net looking for victims who do not know any better. Using social media or commercial sites where buyers and sellers meet regularly could also work such as eBay.

It may be difficult at first as people who deal online are usually cautious, but with the right approach and the right credentials online platforms provide equally good opportunities for you to make the highest cash payments when you sell gold jewellery.

Something Strange in the Precious Metals Neighbourhood

In most circumstances and according to historic data, the silver market responds alongside gold, and in most instances it outperforms gold. However, looking at the latest empirical evidence, it seems that silver is having a lot of issues keeping up with the ‘godfather’ of precious metals.

Over the last decade or so both metals have had a significant correlation of 0.81 and any movement made by gold, silver amplifies it by 45 % (based on a regression analysis using SPSS statistical software) this means a rise in gold by 1 % would stimulate silver to rise by 1.45 %, this is however not the case for 2016. Gold was seemingly up by 17 % this year and the first 10 % took place at the very beginning of the year which means, silver should have risen by approximately 25 %, this was not the case, as silver only rose by about 8 % at the peak of gold’s rise, some analysts are even stating that this is the first time this phenomenon is taking place.

This situation could also be due to the fact of silver’s quasi industrial status. The fact that although silver is considered a precious metal, it is also widely used by industries, and a slow growth in the industrial sector (fingers pointing at China) could bear down on not only silver, but also copper, nickel and others, which have somewhat rebounded and outperformed silver.

This according to most analysts is due to the position of silver as an industrial metal rather than a precious metal and because most of gold’s rally was driven by investor fear, the glut in demand moved on the price of silver negatively. Another factor that must be taken into consideration at this juncture is that silver is rarely mined alone, it is usually the by product of gold mining and as gold producers are relaxing production with the hopes of ushering gold prices up, the production of silver has also slowed and the spike by silver was not supported by demand from investment level gold buyers.

Meanwhile, the recent hike by the Feds on rates has also had a tremendous impact on the precious metal market in general as investors’ shift their focus towards better returns as the cost of holding precious metals becomes a nuisance.
However, most investors are not just holding on to their precious metals, they are also using the current lower prices to bring their average per ounce of holding to lower levels ahead of the expected breakout.

A lot of contradicting theories and speculation is currently shrouding the industry making it difficult to tell if whether gold is going to break out or slump back as some are expecting it to below USD 1000 per ounce, which should not necessarily mean bad news as it would give investors greater leverage to bring their average cost/ ounce lower than it ever was.

The truth is that, no matter what happens, gold will rally soon enough and silver is most likely to follow suit although not as robustly as it did before

Disappointing Jobs Report Pushed Gold Prices Higher

After the United States FED published the scheduled jobs report, the disappointment was inevitable for most economist, analysts, and investors.

While this report made clear that the U.S. economy isn’t at its best, investors are losing faith in the Dollar at short-term.

Being worried about the future of the U.S. Dollar is unavoidable. The slow progression of the domestic economy, creating only 160,000 new jobs in April, was worrying for both investors and the FED. At the same time, unemployment didn’t change, located in 5%.
Experts at MarketWatch expected numbers to be way better in the report. A minimum of 205,000 jobs in nonfarm payrolls was forecasted by the media authority, considering this number already a pessimist one.

Impact on Gold

As usual, disappointing numbers in official reports about the U.S. economy boost gold prices. Investors often worry about the currency’s situation, which is weaker when people lose interest and economy are not doing well.

This Friday was excellent for the gold markets, receiving all the concerned players from Forex. The jobs report led a considerable amount of investors to look for a safe-haven asset that didn’t suffer under a Dollar debacle.

The numbers in the recent report may suggest that the FED will have problems to raise the interest rates in the future. In order to do so, the U.S. economy has to throw better results, instead of the actual ones.

Bank of America Merril Lynch stated through its technical team that, according to the recently published data, investors will not see interest rate raises anytime soon. FED had plans to raise the rates twice this year. Now, the panorama has changed.

This fact is helping gold to reach unexpected levels. George Gero, precious metals expert in RBC Wealth Management, said that is possible that gold “finally close over $1,300”.

RJO Futures senior market strategist Phillip Streible is confident that “the next bull market in gold is starting”. This may represent a huge opportunity for all-time, consistent gold holders.

Mining Stocks are Enjoying gains as well

The great Friday gold had was also positive for mining stocks. Big names in the market are now recovering from massive losses in the previous months.

A bearish gold market affected terribly the mining companies’ performance, pushing investors to look away to other, safer alternatives.
Single-day gains for mining stocks are notable. Newmont Mining and Barrick Gold went up almost 4%. On the other hand, Goldcorp got 2.9% by the end of the day.

Besides stocks, leveraged exchange-traded funds related to gold also recovered what they lost recently. The Direxion Daily Junior Gold Miners Index Bull 3X Shares gained 16% by the close. The Direxion Daily Gold Miners Index Bull 3X Shares when up 12% as well.

The Bottom Line

The bullish gold market is performing above expectation and against all the odds. By now, the prices of the precious metal achieved its best quarter in three decades. This new achievement for the financial indicator may be a good way to forecast what is coming.
Besides the negative forecasts, we heard months ago about the final age of the gold markets, including mining companies in the terrible scenario, prices are getting higher each day, proving the contrary.

The worldwide adversities in the financial matter are including now the slow progression of the U.S. economy. After decades of being the most solid currency available to invest in, people may be feeling worried about the direction of the Dollar.

Saving in Gold

From the very first pay check one receives, there is spending and there is savings, the savings are usually divided into short term savings and long term savings with the short term savings accommodating short term goals such as buying a car, getting and education or even getting your nose fixed with plastic surgery. Then there is the long term savings, which usually involves buying property or paying for children’s education or even starting up a business.

However, when it comes to long term savings many people make the mistake of nurturing their savings with paper currency without realising that the money that they are earning now, will not have the same purchasing power after 10 years, and despite the small interest that your savings earn you via the bank, in general savers lose as the longer their money stays with the bank, the smaller the value of each dollar while the bank takes your money invests it somewhere and double your money, they keep on average about 95% of the money they made from your money and give you 5 % and they never say thank you, in fact they somehow always manage to get even that measly 5 % they gave you initially.

So how do you manage long term saving? The answer is to save it in physical solid gold bullion.  Keeping long term savings in gold or silver, palladium, or platinum is a complete and proven savings strategy.

For instance it is totally lawsuit proof based on the fact that gold is never on the books with regards to financial accounting although gold is the ‘Real McCoy’ of money. Regardless of how old the gold is or which part of the planet it was mined from, gold along with the other precious metals is a permanent and trusted measurement of value. It will never be deemed worthless as each ounce of gold on the planet comes with an enormous amount of man hours put into mining it giving it value than cannot be offset to zero.

Another factor is that, gold is actually the only universal currency as everybody accepts is as payment, some currencies are not even accepted at foreign banks, because some paper currencies are nothing but worthless paper outside of its own borders. The point of savings is to not lose your savings, or be vulnerable to currency deprivation that could turn you into a popper overnight.

Gold retains its value no matter what and thus having gold as savings is without doubt if not the better long term saving option – it is the only valid saving option.

Even central banks buy and store gold, because they know that the paper currency that they themselves print will eventually lose its grip as a value store and the only real value will be held by the precious metals pantheon, much as they did eons ago.

Saving your earnings is one thing, protecting it from the forces of economics is entirely another thing and the only shield that we have to protect long term savings, is by turning it into gold.

Best Gold Buyers in Melbourne Use XRF Machines and Acid Tests

The best gold buyers in Melbourne use both XRF machines and Acid Tests to check the value of gold that they are buying or trading. Both these systems of checking gold can give the most accurate value of a gold item. Gold sellers are provided how much their gold really worth.

XRF Machines for Testing Gold

XRF machines are used determine the value of gold. Not only jewellers use this machine, but people who are engaged in buying and selling of gold. Using this machine, the value you intend to get is close to the value of the product when sold on the market. That’s how accurate this machine is.

XRF machine is used by placing a gold item into the platform of the x-ray machine. Then, a computer screen   will display what the camera is focusing. An analysis will occur and in few minutes, the breakdown of the gold content and other related metals is provided.

The information obtained from the analysis of this machine includes Qualitative Bulk Analysis, Inclusion of Nickel content, film or plating analysis, Identification of anomalies or defects and possible causes, RoHS and other prohibitive materials improvement.

The best gold buyers in Melbourne prefer to use XRF or X-ray Fluorescence because it is easy to use and also for non-conductive materials such as ceramics, plastics, liquids, and glasses.

The Acid Test for Gold

Before discussing, how an acid test is performed by most gold buyers in Melbourne, it is best to learn first about the measurements of gold content in the karat system. Pure gold or fine gold is a twenty-four karat gold, which is actually 99% pure gold with 1% negative allowance. So, any jewellery below 24 karat is considered gold alloy. 14 karat gold, which contains 58.3% gold and 41.7%, may contain zinc, copper, silver, and bronze is the most common in much jewellery worldwide. Evidently, the lesser the karat, the lesser is the gold content of the jewellery.

Acid Test is the traditional method of testing the karat value of gold jewellery. This method is done by rubbing the gold jewellery against a testing stone to create a scratch that is dropped in the solution. If the gold smear does not dissolve, then the jewellery’s karat is similar to that of the solution.

Trustworthy gold merchants use this test to determine the real value of gold and if the gold is real or fake. If you will sell your gold, it is best that you sell it to buyers that use testing methods to determine the accurate value of your gold. This will ensure that you get the proper value for what you are selling. If you want to know for yourself the value of the gold you are selling, you can also purchase gold testing kit and test your gold jewellery before dealing with gold buyers.

How Gold are Valued and Sold

The value of gold is never lost, but fluctuates. When the demand is low, the value depreciates and when the demand is high, the value appreciates. Therefore, the best time for you to sell your gold is when the demand is low in order to get the highest price for it. But, you must remember that different gold merchants will offer you different prices. Some may pay you in cash and some will not. To protect you in this very lucrative market is to know some basic principles of selling and buying used gold jewellery.

  • Take note that the value of your gold jewellery is based on its weight, purity, and prevailing prices of gold.
  • Buyers’ cash price offers to you changes daily so you may not get the price quotation you get today for tomorrow’s transaction.
  • Buyers’ intention in buying your old or used gold jewellery is for melting down. Therefore, how intricate the design of your gold jewellery has no bearing for its selling price.
  • Several buyers you visit in a day will offer you varied cash prices for the same gold jewellery.

If you want to get the highest prices for your gold jewellery from gold merchants, take time to learn about buying and selling gold. Compare prices from reputable buyers only. Don’t choose according to popularitiy, but rather by the reputation the buyer has.