Best Returns from Gold Investments
Gold has been a bread and butter investment for hundreds of years as its value remains far less volatile than other investment opportunities such as stock, property and the money market. Gold was in fact used as the primary currency across the world until surprisingly recently. It was only in 1933 that gold had been replaced across all countries in the world with country specific currencies using paper printed money and more common alloy metals for coins. Gold however remained the collateral for paper and alloy metal based money until the early 1970’s with most money being issued against gold held by governments and central banks. However a succession of economic crises and the hoarding of gold by dominant economies, meant that gold could no longer sustainably be used as collateral for issued money and a variety of other financial mechanisms were developed and implemented to secure the value of minted and printed money.
Despite this volatile unpredictable journey of gold, the precious metal remains a benchmark for value and investment. Gold is a safe investment and is particularly popular during times when global economies are suffering and are unstable. During times of bear market times and times of recession, gold is the go to safe investment with the gold price frequently increasing during times like these due to demand for the precious metal. Of course gold becomes less popular during times of rapid growth and the increase in value of other classes but most good investors will tell you to have diversity within your investments and to include some stable, low risk investments. This is where gold fits in. Gold is an investment that is stable, low risk and is there to mitigate the risks and potential losses of other investment classes.
Many of us may have gold in a variety of forms including gold jewelry, gold coins and even small gold bars or pieces. Not many of us will have gone out and bought these lately but are more likely to have received them as they were passed down within families. We don’t even tend to buy gold jewelry as an investment anymore, but as an aesthetic piece to wear. This approach is different in other parts of the world where gold is bought as an investment and kept safely to cash in at a later time. Gold is very popular in Asian countries, not because of its aesthetic qualities but because of its inherent value. Some of us should probably be very grateful for the gold coins, gold pieces and coins that we have generously received from our older family members who saw the value in investing in gold in one form or another.
One of the most convenient ways of cashing in your gold assets or to put your gold assets to financial use is through pawn shops. Pawn shops have garnered an unfortunate image, predominantly due to questionable stereotyping by the media, but they have since made significant efforts to reverse that stereotype and become a more attractive financial services offering to everyone. Pawn shops have positioned themselves on the main shopping streets and within malls while reinvigorating their interior décor to reflect a welcoming and professional environment in which to transact. Pawn shops are no longer the back-alley, smoke filled, dark offices that the media, TV, and movies once portrayed them as.
If you are, thus, an owner of gold in the form of gold jewelry, gold coins or gold bars, then pawns shops are now a very attractive way to transact gold for cash or gold for cash loans. Gold is in high demand by pawn shops due to the relatively easily tradability of gold and the well-established valuation and appraisal techniques used for valuing gold. The gold price is also easily established given the global gold price index. If you are looking to pawn gold, then there is now no better service than a reputable, licensed pawn shop.
If you believe you have gold jewelry, gold coins or gold pieces or ingots that holds some value and would like to sell the gold or use the gold as collateral, then your local pawn shop is likely to be the easiest and quickest place to get this done. A significant amount of business that pawn shops do involves customers wanting to pawn gold, and your visit will in no way be unusual for these pawn shops. When taking your gold assets to a pawn shop, they will, obviously, use established techniques and gold characteristics to establish the value of your gold collections. Gold coins and gold pieces or ingots will frequently have the gold quality indicated on the piece and will most often refer to the karat of gold of that particular piece of jewelry or gold ingot. The higher the karat, with a maximum karat of 24, the higher the gold content of the coin or ingot. The gold content along with the mass of the jewelry piece or ingot will then reflect the current value of the gold taking into account the current global pure gold price. It is important that you have an understanding of the gold content in your coins or ingots and are aware of the rough gold price in order to ensure that you have a ballpark value of your gold and that the negotiations that take place when you pawn your gold do not start off poles apart from the pawn shop. Gold coins, may have additional value associated with them particularly if they are rare or vintage coins. The value can increase dramatically for these coins as there is thriving collectors market for rare and vintage coins.
Valuing gold jewelry most often uses the certificate of origin or authenticity to establish the definitive gold content of the jewelry piece. Gold jewelry bought from established retailers will always have a certificate of origin or authenticity and it is important that this be supplied with the jewelry piece for quicker valuation purposes. Gold jewelry may also have an indication of the gold quality imprinted on the piece as well. The total gold content and mass is used to establish a basic value of the jewelry piece, but a number of other factors are used to then determine a final value. Jewelry, similar to gold coins, can dramatically increase in value if it is rare, vintage or has been manufactured by a particular branded jewelry house. Branded jewelry, such as Tiffany & Co, Faberge or Cartier has additional value because of its brand. If the jewelry happens to be rare or was in limited production, then there can be exceptional values associated with the jewelry. Again, there is a large collectors market for such jewelry and pawn shops have excellent understanding and knowledge in these markets.
Pawn shops are ideal businesses to pawn gold and it is likely to be in your interest to at least have your gold jewelry, gold coins or gold ingots valued at a pawn shop to ensure you at least have the information to then make your decision. Pawn shops have a deep understanding of the various gold markets, whether it be gold that is going to be melted or collectors looking for jewelry pieces or coins and reputable, licensed pawn shops will give you market value for your gold collections. They are familiar with customers looking to pawn gold and you will either be able to walk out of a pawn shop with a check, having sold your gold to the pawn shop, or with a check having taken out a pawn loan and used your gold collection as collateral against this loan.
Pawn shops are also far less risky than what most people would think. Both Federal and State laws cover transactions and the operations of pawn shops. This means that the customers are legally covered for transactions when they want to pawn gold. If you decide to use your gold as collateral in order to take out a pawn loan, then pawn shops are legally obliged to insure your gold against loss and theft and for the gold to be securely stored. A customers transactions are thus legally covered to the same degree that other loan and purchasing transactions would be with other stores or financial institutions. The alternative of selling the gold privately is far more risky.
If you are looking to pawn gold, then seriously consider a reputable and state licensed pawn shop. Your gold will be valued professionally by experts employed by the pawn shop and you will receive a sellers’ market value for your gold. As gold is always in demand, your transactions when pawning gold will be quick, simple and efficient with the transaction being completed on the day that agreement is reached. If you decide to take a short term pawn loan, your gold will be safe with the pawn shop until you take it back after having paid off the loan and interest. Pawn shops are ultimately one of the better places to ensure maximum returns on the selling or collateralizing your gold collections.
Safety in Gold
Gold has been a safe and secure investment for centuries and remains an important investment that is often used to balance more risky investments. Gold in its various forms is seen as an investment that is less volatile and fluctuates less than other investments such as stocks and other commodities and retains its values even during tough economic periods. Gold is similar to property in that it is both a sustainable investment and generally does not depreciate significantly in value during bear markets or recessionary periods. The benefits of a gold investment over property are that much smaller investments can be made when compared with the amounts that have to be made in property meaning an investment in gold can be made by almost anybody. Gold can thus be seen as an accessible and secure investment. Investments in gold can be made is a single investment or can be made as part of a larger portfolio where the gold portion will balance other more risky investments.
Gold comes in many forms. In its simplest form it will be found in gold ingots or gold coins. These can be pure gold or close to pure gold where the ingot or coin weight is closely correlated with the pure gold price. Alternatively gold can be found in jewelry, home decor or even watches. Despite the gold being included with other metals and precious stones, the gold component still retains value associated with the gold price and can be bought and sold with the gold value taken into account of the overall value of the jewelry, décor or watch value.
When you consider investing in gold or realizing the value associated with your gold assets, it is important to bear in mind that the gold price does fluctuate on a daily basis. In fact the price fluctuates throughout the day as gold is traded on a global gold commodity exchange where it is bought and sold by commodity traders. As an individual, you will not be trading your gold items on this exchange, but will be trading with physical buyers and sellers, whether they be stores or other individuals. The current gold price will however be a determining factor even in your trades of your jewelry, décor or watches. The gold price is measured as the price per ounce of gold meaning that commodity traders are dealing in ounce denominations. They will obviously trade in amounts much more than a single ounce but it the price of gold itself will always be reflected per ounce. As an illustration the current price of gold is over $100o per ounce. Thus when determining the baseline value of your gold investments you will be considering the ounce weight of pure cold in your jewelry, décor, watches or other items. It is very easy for you to calculate a rough estimate of your gold assets by measuring the weight of the gold containing item and then determining the portion of the weight of an ounce and using the gold price to then calculate the value. There may be an additional step though if your item is not pure gold though. Most people are aware of the karat system for gold. The karat refers to the purity of the gold in your item. The lower the karat the lower the purity of the gold in your item as a whole. For example a gold ring that is 12 karats means that the ring is made up of 50% gold metal and 50% other metals. The karat system has a maximum karat purity of 24 karats. An item that is 24 karats means that the item is pure gold and consists of no other metals. The karat purity then decreases from there as per the example of the ring with 12 karats. A 6 karat ring will therefore be made up of 25% gold metal and 75% other metals. Items that are made up of gold and other metals do not mean that the portion of gold within the item has less value. Almost all gold containing items and products can be melted down and the pure gold purified from the metal mixture. This means that the gold portion still retains its gold price value. In fact most items and products that contain gold will need additional metals in order to ensure the integrity and strength of the jewelry, décor item or watch. Gold is difficult to work with and has less strength and malleability than other metals. A pure gold item will scratch easily and be easily damaged. Having other metals within the item, in the form of gold alloys, increases the strength and resistance of the item which is often important in items such as jewelry, décor, watches and other items.
Now that you know what kind of value your gold assets will have or what to look for when buying gold assets, the next step is to trade in gold. As mentioned previously, you won’t be able to trade your physical gold or buy physical gold on an exchange. You will need to trade at a physical store or with another individual. One of the best places to both buy and sell gold is a pawn shop. When you want to pawn gold it is as simple as visiting your local pawn shop in Phoenix. There are a number of advantages when you want to pawn gold at a pawn shop. Firstly, the transaction is quick and simple. Your local pawn shop deals with individuals who want to pawn gold on an almost daily basis and they are experts in valuing gold for those that want to sell gold. They will also, typically have a variety of gold containing products for those that want to buy gold. In most cases you will be able to walk out of the store with a check on the very same day that you visit the store to sell your gold or buy any number of gold items on your first visit to the store.
When selling your gold you simply hand of your gold for valuation. Whether you have gold coins, gold ingots or any other item with gold content, the pawn shop owner or manager will some time assessing the gold products for value. If you have a certificate of origin or certificate of authenticity that came with the gold item then it is always a good idea to hand this over as well. Valuation of gold items is usually relatively quick. In the case of gold coins and gold ingots the gold purity or karats will be stamped on the gold item making the job of the pawn shop manager quick, easy and accurate. The valuation will also take into account any additional factors which may add value. In the case of gold coins, the rarity, age and quality of the coin will be considered and if these factors tie up with significant demand for such a coin, then additional value will be added. In the case of jewelry, décor items and watches, the gold purity is typically stated in a certificate of authenticity allowing for a valuation. Again, other factors will be considered such as jewelry or décor item manufacturer or designer and watch brand. Rarity, age and quality can add considerable value to these items as well. Once a valuation has been determined, the amount will be proposed by the pawn shop and it is then your decision as to whether you sell or wait additional time for the value to increase.
Pawn shops are also a great place to invest in gold items. Pawn shops will often keep some of the gold items they have bought for sale to walk in customers. These may include gold coins, gold ingots and then of course second hand jewelry, watches and items. Many pawn shops these days focus on higher end items which make for good investment options so these pawn shops are not the place to pick up cheap second hand watches or $10 pieces of jewelry. When buying gold items from a pawn shop you will be buying gold at market value with a slight markup for the shops operations and profit. You will thus be getting an excellent deal on gold which, if you are prepared to hold onto, will mature in value with time and allow for a return in the long term.
If you are considering your investment options and are thinking to pawn gold, then now is a good time to do this. The last seven years have been tough economically and stocks and even property have shown very little growth since before the 1998 economic crises. Many investors turned to gold to ensure parts of their investment portfolios were safe. Economic growth is still slow and there could very well be periods in the short term where stocks could drop in value, making gold the ideal investment to have. Pawn shops and the opportunity they provide to individuals to pawn gold allow for effective yet simple methods for securing your savings and investments.