Gold has been a precious metal of high economic value for ages. It is much more than a piece of shiny metal. The dynamic utility of gold as a metal has added to its worth. Today, most people see gold purchases as a long-term financial investment. Intelligent gold investors know when to buy and sell gold for cash. Ideally, it should be purchased during low market prices and sold when the prices soar. Selling unwanted or unused pieces of gold is a great way to profit from existing gold belongings. Let’s take a deep dive into why you should consider selling unwanted and unused gold items.
Why sell unwanted or unused gold articles?
An important factor which makes gold an ideal financial instrument is its liquidity. The market for reselling gold articles makes it easier for ordinary people to sell their gold articles. Here are some important reasons why you should consider selling unwanted or unused gold articles.
1. Better returns
If you are someone who is holding gold as a financial instrument for good returns. It is time to rethink the investment strategy. When the market prices are higher, selling gold for cash can help you book a profit. You can invest this fund in other investment tools for better returns. Over the past few decades, the average rate of return on gold has been around 9.6%. If you have a slightly higher risk appetite, you can invest the money elsewhere for better returns.
2. High market prices
There are three crucial determinants of the gold’s value in your possession. It includes the purity of gold, the weight of the article, and current market prices. The first two out of the three determinants are constant. Therefore, the purity and weight of your gold belongings won’t vary with time. However, the market prices can fluctuate regularly, and you can profit from increased market prices.
3. Upgrade your collection
If you own gold jewellery that is old and out of fashion, you can consider selling it to purchase new ones. Upgrading your gold collection from time to time is essential, especially if you are a fashion enthusiast. However, you won’t have to dig into your savings to purchase new gold articles.
4. Broken articles
Mending broken gold jewellery or other articles can be very costly in many cases. In this case, it is better to sell the damaged gold articles to finance the purchase of new gold items instead of repairing existing ones.
5. A better alternative to loans
Selling gold items to obtain funds can be a better alternative to loans when the interest rate is high. This is because you will be able to meet financial obligations without any interest burden. Also, there will be no restrictions on spending the money.
Tips to sell unwanted gold articles
Here are some crucial tips to follow while selling unwanted gold articles.
1. Find out the purity
One of the most important things to do before selling any gold item is to check its purity. The purity of a gold article is measured in Karats. A higher Karat value indicates a purer gold article and can help you get more money while selling. A lower Karat value means the opposite. Reliable financial institutions dealing in gold have a benchmark for purity. Most institutions only accept a Karat value between 18k to 24K.
2. Compare prices in the market
You must compare the prices in the market and the amount being offered by different gold buyers before selling it. Researching the market prices and value for gold articles will help you find the best deal.
3. Only sell to reputed companies
Never commit the mistake of selling gold articles to random local jewellery shops. They might not offer the best price for your gold. Instead, selling the gold articles to reputed institutions will get you the best value for gold. Also, the selling process is hassle-free and quick.
4. Carry the purchase receipts
The purchase receipts of your gold belongings are essential for getting the best value of gold. All reliable gold buying/selling companies ask for proof of ownership of gold articles being sold. These receipts have essential details regarding the purity and weight of gold items. Failing to provide the same can result in no sale.
