When it comes to purchasing gold, there are number of places that you can go in order to buy the precious commodity. However, the one main source to buy gold is the most commonly overlooked place.
Over the years many investors have chosen to purchase their gold from a bullion dealer. While bullion dealers may be a great option to ensure that the gold you are purchasing is pure and comes complete with a certificate, it is also a place that sells at a rate much higher than that of the prevailing market rates.
The Best Place to Buy Gold Could Be Closer Than You Think!
Other investors have chosen to purchase their gold at coin shops. Just like purchasing gold from the bullion dealer, when you choose to purchase gold from a coin shop or a coin collector, you are paying a lot more than the prevailing market rates. Many coins and bullion sold at coin shops also have a collector’s value which only increases the costs associated with purchasing your gold.
So then the real question is, what is the best place to buy gold? Believe it or not, the best place to buy gold is at a pawn broker. Every single day thousands of people make their way upon shops all over the country in order to cash in on their jewelry and other valuable items. While some people actually return to the far shop later to collect their valuable item, many people leave their jewelry at the pawn shop.
Sometimes people cannot afford to pay the pawn broker fees. Sometimes the items were being sold and not really pawned. Regardless of the reason, pawn shops are filled with on collected merchandise. Some pawn shops auction these items off while other pawn shop simply put him for sale in their display booths. The procedure after a pawn has not been claimed is different from location to location so it is important to check with your local municipal regulations when deciding to purchase gold from a pawn dealer.
While the pawn shops realize that the gold has a value, in most cases when they resell are auctioned off, it is well below the prevailing market rates. The pawn shop itself wants recuperate any of its losses as well as gains some profit in the process. As a result any item made of gold sold at a pawn shop is usually well below the current spot rate. Further, all the items have also been well documented to include their purity content as well as any other important aspects.
The pawn shops have already done the hard work for you. All you need to do is check out the auctions or swoop into purchase a good deal when you find one.
To make things even more exciting, sometimes the pawn shops are in a rush when pricing there are items for sale or auction. As a result sometimes they under value an item or two. These undervalued pieces of gold jewelry are your best options to making money when investing in the precious metals market.
If you are lucky enough to live in a place where the pawn shop is required to auction off any pawned jewelry that has not been claimed, then chances are you will be able to get the precious metal at an even lower price than ever thought possible.
However, even if the items end up going straight to the shelf, you still have the ability to bargain and haggle the prices to ensure that you are getting the best deal possible. Do not be afraid to dicker and deal in an attempt to reduce the price. You are not upset the pawn broker one bit. They argue the lowest price that they are willing to go and they just simply will not go below that.
Further, it may be in your best interest become friendly with the staff and the owners of the pawn shops in your area so that you can be kept up to date on any potentially profitable items that are coming up for sale or auction. If you build up a good enough trust relationship you may be considered the “Go to Guy” who was always called on when the pawn shop needs to make a quick sale.
It is not uncommon to find gold for sale at pawn shops at 10% to 20% below the prevailing market rates. This can mean substantial income if there are not pawn shops in your area and enough money available in your pocket to make the initial investments.