People often think that buying gold shares (gold mining shares) are shares of gold itself, but if you buy and sell shares, you’re actually buying and selling shares in a gold mining company as opposed to selling gold.
If your bars are pure gold, selling them will be easy and you will receive a good price for them. However, the value of your gold will be reduced if, upon assessment, there is any non-gold alloy in your bars.
Another factor to be considered when buying gold bullion bars is the purity. This pertains to the amount of gold that the bar actually contains. If you will notice the ends of a gold bar, there are digits stamped in. This is the purity of the gold bar. The universal value of gold is 99.99 percent purity. The purity of the gold depends on the country it is originating from. For example, a gold bar with 96.5 percent purity is from Thailand.
Because investing in gold means spending a large amount of money, it is wiser that your buy gold in bulks, rather than piece by piece. When purchasing gold in bulk, it is actually cheaper than buying gold by the piece. Also, buying in bulk means a much lower premium. Remember to buy from trusted accredited pawn shop san francisco to make the most out of the premiums that they have to offer.
The price of gold is determined through trading in the gold and derivatives markets, but a procedure known as the Gold Fixing in London, originating in September 1919, provides a daily benchmark gold price to the industry. The afternoon fixing was introduced in 1968 to provide a price when US markets are open.
Then there are all those scams to watch out for now that gold is such a big deal for investors. Some dealers may try to sell you foreign or collector coins. The word “confiscation” is bandied about along with the “better return when you sell” phrase.
It pays to check the current market value of gold before heading out the door. Don’t let disreputable gold dealers pay you less than the current market value. If you’re selling for purely scrap purposes, you at least deserve to get the market value of the metal. Give it a quick check and you can then raise a dispute with any buyer who wants to pay you less than it’s worth.