The allure of gold as a fail-safe investment in adverse financial times remains strong. Yet, we are noticing a potential pitfall. Many, dazzled by gold's soaring prices, may be tempted to sell their hoard and cement a hefty profit. The spot price of gold hovers around $1,958 per ounce, marking a year-on-year increase of 11% as well as an awe-inspiring surge of 62% from five years prior, as stated by finance data supplier FactSet.
Acquiring gold seems simple enough, whether by buying one-ounce bars from outlets like Costco, securing it online, or even inheriting it in the form of coins, bars or even jewelry. Disposing of your gold, though, can hide traps such as failing to secure a fair price or even landing in a scam, caution experts.
"Selling can be akin to a risky bet," warns Kathy Kristof, a notable financial whizz and the brains behind Sidehusl.com, a site providing guidance on gaining a side income. "You fork out at one rate and sell at another - therefore, discretion is paramount while choosing where to unload your gold."
Kristof elucidates that even if you procured that one-ounce gold bar from Costco for $1,999, the same selling price isn't guaranteed. Your aim should be to secure a selling price as close to the current spot price as possible.
Amping up your research before handing your gold over to a third-party buyer is vital, Kristof stress. She suggests giving brick-and-mortar buyers a miss as they may offer less competitive prices due to overheads like maintaining a physical shop. Instead, Kristof recommends online gold buyers like The Alloy Market and Express Gold Cash, following a rigorous scrutiny by Sidehusl.
"Alloy and Express Gold Cash tend towards providing you with rates close to the spot price. When carrying out your research, make sure to comb through reviews for warning signals such as disgruntled customers, legal suits, or even instances when a company denounces having received the gold," she advises.
All buyers, including Alloy Market and Express Gold Cash pay for gold in a plethora of forms, including, but not limited to, former dental crowns, jewelry, and gold coins, but bear in mind that not all gold is created equal. Higher prices may be obtained by selling pieces to interested jewelers or purchasers for their aesthetic value, apart from the gold content itself, adds Kristof.
Lastly, if you decide to sell online, ensure your gold is insured before it is shipped, Kristof emphasizes. Companies like Alloy Market provide up to $100,000 worth of insurance on gold shipped to their premises. "Alloy and Express Gold Cash, with their solid reputations, transparent dealings and inclusive insurance, are a safe bet," Kristof finishes.