Unlike other commodities, scrap gold retains some of its value even if it seems to have lost the luster. Actually, scrap gold should never be relegated to drawers because every gold item has a value regardless of the condition. If someone has a broken gold item or any other form of scrap gold, it is wise to evaluate its true value and decide whether to save it as an investment or sell it. The charm of selling scrap gold lies in the fact that gold dealer will always be willing to buy scrap because after melting the gold can again be converted into coins, antiques and jewelry.
Still, selling your scrap gold may not be the best idea because if the current spot gold price is very low then the chance of getting a good price is minimal. Remember that you are not selling gold, but scrap gold. Scrap gold may not be worth the value of spot gold. Hence, it is always a good idea to check the current and historic prices of spot gold. If the price of spot gold is somewhat on a higher side then it is definitely worthwhile to sell your scrap gold.
When to Sell?
Also note that you should look to sell even if the gold price is not at its peak because the price of gold keeps on fluctuating, and you may never get the same price again. Only save the scrap gold as a future investment if the spot gold price is very low. In this case, you would want your scrap gold to regain value so that dealers and other interested people are willing to give you a fair price.
It is easy to check the spot gold price. Use the internet to look at the historic graph of spot gold price or just check in with your local goldsmith to assess current prices. Keep in mind that if the current price of spot gold is high then you should never make a mistake of waiting for the price to go further up. Like other commodities, the current value may be a price bubble waiting to burst.
Selling Scrap Gold
In order to sell your scrap gold, you should try to appraise its value. You should know how many carats of gold it is. Gold is 9ct, 14ct, 18ct, 22ct or 24ct. Sometimes this information is engraved into the item. After determining the amount of carat, check on the internet for current spot gold prices. As said, a local goldsmith can also advise you on the current price. However, don’t take his word for it because he is still a businessmen looking to get a good deal.
You should also check online with reputable dealers and auction sites to gather more information. Mostly, reputable online brokers and auction websites will provide a better value because your local goldsmith has to charge extra commission to pay for the overhead expenses. Nevertheless, act wisely when deciding to sell or save it for future investment.
MARC FABER NEWS
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The Market Oracle
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[An earlier version of this blog mistakenly attributed the comments to Marc Faber's blog. The original comments were made in an interview with Barron's on June 1. The comments were picked up Tuesday in a tracking blog that aggregates Faber's public ...
Dr. Doom Marc Faber: Don't Bet on New Market Highs
Faber said large cap stocks like McDonald's, Coca-Cola, Procter & Gamble and Wal-Mart "have most likely peaked." However, he thinks there are still stocks that show strength that could continue to appreciate "because all the money flows into fewer and ...
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Marc Faber notes liquidity squeeze depressing stocks but still buying gold
Famously contrarian in his approach, Dr. Faber is usually out of step with Wall Street but has an excellent reputation for calling the major market turns. He does not say he is shorting equities, though he notes emerging market equities and currencies ...