Make Money Buying Gold
Gold is the oldest and more enduring form of legal tender. It is universally recognized for its value and rarity. While financial markets make wild swings over short periods of time, gold prices tend to creep up and down. The patient investor can do quite well if they know what to look for. Follow these steps to learn make money buying gold.
Instructions
Make Money Buying Gold
1. Understand what makes gold prices move. When the economy is doing well, gold prices tend to fall. When the economy is bad, gold prices soar. Investors tend to cling to the enduring value of gold when their financial future is uncertain.
2. Study the history of gold prices. Back in 1999, gold was selling for about $250 per ounce. By 2008 it topped $1,000 per ounce. Similar dips and spikes are recorded throughout history. Understand that gold prices don't fluctuate much on a daily basis but often make a steady march upward or downward.
3. Buy low and sell high. This may sound obvious, but if it was easy then everyone would do it. If you are buying gold, do it when no one wants gold. Do not buy when everyone has gold fever.
4. Gather gold that nobody wants. Most gold transactions focus on high-quality gold coins. With gold coins, the condition and rarity increase the price dramatically. There are many more gold coins, bars and scrap that are not in good condition or plentiful. You can often buy these in cheap lots from gold and coin dealers who want to unload them since most of their customers want the high-quality gold coins. When the price of gold is high, your less-than-perfect gold will sell just fine.
5. Hold that gold. Gold investing is an exercise in patience. Accumulate your gold when the economy is good and gold is cheap. Wait until the economy crashes. It always eventually does. When gold prices rise, dust off your gold and reap in the profits.
6. Buy as a wholesaler but sell as a retailer. When accumulating gold, look for every opportunity to buy in bulk and cut expenses. Many gold dealers waive sales tax and shipping when you buy a certain amount. When you are selling, pedal your gold to the general public. A gold dealer will want a wholesale price from you but regular people will pay market retail. Sell your gold on Internet auction sites, at coin shows or to another investor who isn't as smart as you.
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