What You Must Know About Your Gold Before Selling

21 December 2021
 Categories: Finance & Money, Blog

One of the reasons to invest in something like gold is so you can sell it when the time comes when you need money. This could be to pay for college tuition, to make a down payment on a house, or because you have a medical emergency. Regardless of the reason, you will need to know your own gold very well before you sell it.

Why Your Gold is So Valuable

Gold is valuable to a large extent because of its history. It has been used as a currency for many years and continues to be perceived as being valuable. Gold is also scarce. For other materials that are less scarce, their value declines as they become more widespread. Gold also has value because it has many uses. For example, it is used to make jewelry and electronics. 

Determine if Your Gold is Real

You may have been sold fake gold without knowing it. On real gold, the purity of the gold is marked somewhere. This will be based on a percentage or on the number of karats. 24 karats is the highest level of purity for gold.

However, the markings might be fake and you may need a different method to identify gold. Because gold is heavy, it should sink in water. If it does not sink, it is more likely to be imitation gold. Also, gold is not magnetic. Therefore, if the piece of metal sticks to the magnet, your gold is fake. However, you can also always visit a gold coin dealer to see if they will give you an opinion on whether your gold is real.

Gold Bars Vs. Coins

Two of the most common types of gold are gold coins and bars. Generally, you will be able to sell your gold coins for more money. However, the total value of a gold bar might be higher because they tend to be purchased at a higher weight.

The Mint

Where your coins were minted is very important. Your coins may have been minted by a sovereign government or they might have been minted by a private mint. If your coin was made by a sovereign mint, it will be considered legal tender.

The History of Your Gold Coin

Some gold coins have a unique history that can cause them to be valuable to collectors. If this is the case, you may be able to sell your gold for more if you sell it to a collector.

For more information, visit this site or sites like it.