- Personal Finance
Selling your unwanted gold for cash?
Cash for Gold- A sign of the times?
With the recession and general poor economic times we find ourselves in, we have seen a marked increase in the cash for scrap gold advertisements on television, radio and here on the Internet. Now the one thing I find quite funny is the phrase usage of " Scrap Gold" I could understand people saying scrap iron but gold, as one of my earlier hubs expanded upon is a valuable commodity. I think maybe scrap gold is a sneaky little ploy to make you be dismissive of the real value of gold. Or maybe I am seeing psychological conditioning in the market place, I will leave that opinion up to you good people to wrestle with, maybe you are less cynical than myself.
Is Cash for Gold the right move?
Well, that is an entirely personalized response. Please remember that the gold recycling company is paying you for the value of the gold you send them. They as a rule do not care about the design, intricacy of production, gemstones or more importantly what you paid for it! So whatever figure you have in your head, maybe be sensible and reconsider what they will offer you. An option is to get a local pawnbroker to value the gold before hand, they give you a value of what they would pay for the jewellery item not the gold only price.
If you assume the gold item is valuable then get an insurance quote valuation. The reason I say this about considering parting with a gold trinket or jewellery is that sometimes sentimental value makes an item very very expensive. If you sell a family heirloom for cash and a couple of years later want it back or something similar. You could end up having to spend double the amount to replace it!
Why are people after your Gold?
The rather simplified answer to that is this, gold in the later half of the 20th century generally became a less expensive commodity. This was due to an economy built on rampant public spending and the public willing to accept high amounts of credit based on either their salaries or spiralling cost of their property. If we jump to the present day United Kingdom and the majority of Western societies, the property market has crashed. Bricks and mortar became the new gold in the late 1990's, this was how financial markets viewed your worth.
Gold like houses are only worth as much as a consumer or customer is willing to pay.So now Gold has reverted to its pre-property boom prestige. And although Gold is still able to fluctuate in its price, it represents a more solid and durable investment. Houses are subject to many different factors such as Lending rates, desirability, dilapidation and maintenance costs, and location. The hoarding of gold is an investment as gold will always be worth more than its real practical value. Our banking system still likes the traditional economic feel of the smooth security of gold bar's.
Is the Cash for Gold a con?
There are several well established gold recovery firms, and if you keep your senses about you, there should be no reason why you would get swindled. Most reputable cash for gold companies will provide postage paid and proof of postage envelopes. They should not charge you for the valuation of the gold you send them. And your statutory rights are not effected by you sending in your gold, The gold is yours until you sign away the agreed sale of the "scrap gold". As always when dealing in these types of transactions do your research and ask around. The more established companies need to maintain their honest image so are more likely to offer a good customer service experience. If they end up with a bad reputation they will lose customers.
Any more advice you can give?
If your going to trade your gold, think it over and don't be too impulsive. Once you sell off Grandma's gold engagement ring, you may never see it again. It could be smelted down and lost forever. Also get a couple of quotes for the price of the gold. Don't just randomly pick one company and settle on the first offer, shop around. While shopping around be wary of offers that seem too good to be true.
If one company is offering a good amount more than the average price, check them out thoroughly. It is likely the company is a scam or con. Never get blinded by the money on offer as greed is not good. Finally don't expect to get an offer that you believe is realistic, these companies are money making businesses they have to make a profit. Finally do your research, check what the price of gold is and workout what is a reasonable price. If there is gold in your dresser or cupboard just sitting there, why not get something for it? just don't give it away and regret it at a later date.
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