Photo: Flickr via faungg
The price of gold has risen steadily over the summer, hovering around the $1,750 mark today and not far from last year’s peak of $1,895. In short, it’s a seller’s market.
But before you start rifling through your jewelry box, we reached out to expert Bobby Tyson of Gold & Silver Buyers, for his take on the dos and don’ts of the gold trade.
Keep your eye on the market. “The spot price reflects the current market price for gold,” Tyson says. “Don’t expect to receive spot price for your gold, but know that purchase offers fluctuate with the market and look to sell when the market is up.” We like Bloomberg’s Commodity Futures tracker for keeping tabs on gold’s current market value. Scroll down to “Commodities.” Tyson relies on sites like kitco.com to keep up with greater trends in the industry.
Vet the gold buyer before you sell. With gold going up in value, watch out for scammers looking to take advantage of eager sellers. “The latest gold boom has resulted in fly-by-night operations moving in, ripping off consumers and moving on,” Tyson says. Visiting the Better Business Bureau (http://www.bbb.org/) to see if any complaints have been filed against the company would be a simple way to start. Even after you’ve done your homework, he advises consumers take along someone they trust to vet the buyer in person.
The key is in the karats. “20-four karat is gold in its purest form, giving it more than twice the value of 10 karat gold,” Tyson says.