Even before the economy tanked, it was no secret that you could make money buying gold. One method that has become more and more popular as gold prices fluctuate is buying gold jewelry. The market prices may fluctuate but, in general, gold will always be worth a significant amount. A popular way to make money with gold during the recession and purported recovery has been to buy jewelry. This "scrap" gold is, after all, still gold. Different pieces, even of the same size, can have different values because it is the karat weight that indicates how much pure gold is in the piece. Ten karat gold, for example, has less pure content than 24 karat gold, and an 18 karat piece has somewhere in between.
The Timing of Buying and Selling
If you intend on creating a business around buying gold, you'll need to be educated and prepared. You'll want to keep an eye on the daily movements of gold prices if you want to make money buying gold , according to Bettina Newton's "Buying and Selling Gold Coins." Just as with stock prices, it's better to buy gold jewelry and coins when gold prices are down, and to sell when prices spike up. While you want to watch daily gold prices, you can not continuously wait for the "perfect" prices for buying or selling. You'll miss opportunities to make the most profit for your effort if you do. Instead, be content with selling when prices are higher than when you bought.
Assemble the necessary tools
In "How to Buy Gold: The Quick and Dirty Guide to Flipping Scrap Gold for Profit," Matt Wallace advises that there are four vital pieces of equipment you'll need to get started: a jeweler's loupe with magnification, a gold testing kit, a digital scale and a calculator. A couple of additional items that may come in handy include a magnet, which can be used to quickly tell whether a piece is gold or not, and a receipt book.
An Uncertain Undertaking
As Wallace points out in "How to Buy Gold …" there are no guarantees when you decide to buy. It's an endeavor that is full of uncertainty. You can place ads and let the public know by word-of-mouth that you're in the market to buy scrap gold, but the truth is that most people do not know what they really have stashed in their jewelry box. You might make an appointment with someone who says they have a "mound" of jewelry they want to sell and when you meet with them you could find that it is mostly costume and little, if any, is actual gold.
Is it Possible to Eliminate the Risk
Start your own gold accumulation plan. Protect yourself and your family by simply replacing your paper money for currency grade gold in affordable 1- 5 gram bar sizes. This is the safest way to make money buying gold.