There is no second opinion in the high selling value of gold globally. Thus, it is quite precious metal for investors and people loving to wear ornaments. However, to buy the costliest glittering metal isn’t easy as there are ample chances that a novice buyer may get duped.
Here are few mistakes often made by gold buyers best to be avoided:
- Not carefully watching the prices of the metal: The marketing price of gold is never stable. It varies even in few hours of time. Thus, before you embark on buying the precious metal it is best have clear idea about the price. This consideration will help in negotiating with the seller while buying gold.
- Verifying the price in a trusted shop: Often traders quote high value to new customers even if it is available at a lower price. If you are planning to buy gold ornaments verify the actual gold weight and the price. Ask the trader the ornament making charges and the tax price involved. Visit few shops before deciding the best budget friendly gold ornament to buy for investment or for usage.
- While buying bullion you feel all are same. It isn’t as the price depends upon the weight, the purity and the place where the gold is minted out. Every Company has its own price, thus check out the seller who adds up only small percentage on the Company selling price. Moreover it isn’t right to think that higher the price the purity of gold will be higher. On the contrary, for knowing the purity of the metal one needs to check the hallmark on the gold bar or coin. Even gold jewelry will have hallmark stating the percentage of purity of the metal.
- Think before you buy – Consider the reasons for buying the precious metal. If it is for investment purpose or for usage. For investment, it is best to buy gold in bullion like in bar or coins. When you sell gold ornaments later, a major percentage is cut for purity and also you will not get back the making charges that you paid while buying gold ornaments.
- Investing on scrap pieces of gold – There are many sellers who display scrap or leftover tiny pieces of gold to buyers that they can buy at lower price. However, when you sell gold, there are chances of you getting less amount for it.
It will be always beneficial to buy gold from a trusted seller otherwise there are chances that the buyer will get inferior quality gold at a higher rate.