Trading gold has become one of the most active financial platforms today, with its price skyrocketing to up to $1,800 per ounce. Like other investment vehicles, it may come with risks, but a lot of traders bank on their bullion to ramp up their portfolio.
Why own gold?
Over the course of time, gold has proven its unfaltering economic value. Its monetary value, regulated by the Central Bank, is a safe way to keep cash. Its price moves along with global events that cause fluctuation in the value of paper securities, including bonds and stocks. Although in the short term, the value of gold could be volatile, it has always maintained its stance in the long run.
How to trade gold online?
While it is one of the easiest ways to trade, gold selling could also be risky, if not done properly. Here are five tips on how to effectively sell gold online.
1. Make sure to understand the dynamics of selling and buying gold.
Traders earn their profit through the difference between the selling and buying prices. This is commonly known as the premium spread. Study the graphs, historical data, and be up-to-date on current events, particularly on the economy. If you are in doubt, you may also consult experts on the subject matter including traders, financial consultants, economists and professional bullion handlers.
2. Watch out for suspicious individuals.
The online world could be the most dangerous platform due to the presence of digital bandits and online thieves. Be wary of rogue buyers. Make sure that you only do business with legitimate gold dealers. False or “rogue” buyers, also commonly known as “pop-up” buyers, are notorious for their promising quotes. As the deal progresses, they often leave their deal underpaid or even not paid at all.
3. Conduct due diligence of the dealer’s purchasing power.
One way to avoid bogus buyers is to check their previous transactions. You may simply ask fellow gold sellers or simply conduct online research for feedback and testimonies about the credit history of your buyer.
4. Make sure you know how to price your product well.
Apart from studying the scale and graphs, you should also do your own legwork. Try to bring your gold to a trustworthy pawn shop or jeweler and ask them to evaluate its market value. This is one of the easiest ways to keep a base price in mind before finally soliciting your price online.
5. Keep an eye on your gold. Store it in secure places.
Dependable gold dealers will ask for a way to deliver the product physically, but you need to be cautious of how you handle your gold. To ensure safe keeping, some firms offer gold handling services. You may opt to hire bank depositories, home safe and/or a duly recognized IRA custodial company to store your gold.
Above all, the most important reminder is to master the art of selling your gold to the right people. Conduct a research and put your gold where it’s safe. This way, the online world can be a safe avenue to quickly turn your gold into cash.