Buying and storing scrap gold has become a great way to invest. The good side of this type of investment is that it is low risk. This is because you always buy the gold at low prices and then store it. There are several places where you can get the scrap. The most common places are:
Friends and Family: You should ask your friends and family if they have any gold that they want to get rid of. Gold pieces can be damaged rings, mismatched earrings, broken necklaces, and other scraps of gold that you would love to turn into cash.
When you buy from your friends, you need to come up with a price that the people who sell you the metals will be happy with. You also need to make sure that the price leaves plenty of room for profit.
Newspapers: While it is rare to find people advertising the gold pieces they have, there are some people who do. If there are no people advertising, you can announce that you are interested in buying the gold pieces. To reach as many people as possible, you need to advertise in a national newspaper.
Pawn shops: Pawn shop owners often have pieces of gold that they cannot sell to their customers; therefore, you should visit them regularly and see what they have.
How to buy scrap gold
Before you start buying the precious metal, you must first make sure you understand the value of scrap gold. The best way to calculate the value of gold is by taking the spot price of gold and then dividing it by 31.1 to get grams. You can also divide the spot price by 20 to get one penny.
Next, you need to multiply the number you get by the purity level of the gold.
Once you have known how to value the metal you want to buy, you must obtain a license. You must visit the government offices of your city and you will obtain a license that will allow you to buy the metal.
If you don’t have the money to get a license or don’t want to go through the hustle and bustle of getting a license, you should consider working with a licensed broker.
Conclution
These are some of the best places to buy precious metals. Regardless of where you buy the metal, you need to make sure you buy it from a reputable seller.