Gold can be found in array of forms and tucked away in some of the most unlikely places. From estate sales to private individuals, as someone who is looking to buy gold to turn a profit through resale, there is no shortage of places to find good merchandise. However, when you are buying gold to later resell for profit, it is all too easy to make costly buying mistakes in the heat of the moment. To make sure you always get a return on your investment, there are three big mistakes in gold buying that should be avoided.
Mistake: Not keeping a gold testing kit with you.
Why? While you may think it is easy to tell the purity of gold on the fly, this is not always the case. Gold is not always stamped with its purity rating, especially when it comes to older antique pieces or small items, such as earrings or pendants. It is never good to rely in your own methods either, whether it is scraping the gold with a coin or poking it with a sharp object, as these methods are not fool proof. A gold testing kit will give you a definite answer with a quick and simple test using a scratching stone and testing acid, which turns various shades according to the gold's purity level.
Mistake: Disregarding the importance of using a jeweler's loupe to verify markings.
Why? When you are sifting through jewelry pieces or gold coins at a market or sale, it is easy to take a quick look at a marking and discover later that you have made a costly misjudgment. A jeweler's loupe offers you a way to reach in your pocket and have a tool that you can use to quickly take a good look at stamps, branding, and markings on gold pieces before you hand over your cash.
Mistake: Taking a seller's word for authenticity of antique or collectible pieces.
Why? Some gold pieces are highly valuable more because of their history or designer than the weight of the material. If a gold buyer says that the gold piece they have for sale is genuine from a high-end retailer or well-known because of a specific history, you should always have something documented to back up their claims before you buy. It is all too easy to get your hands on a fake that looks just like the real thing. Make sure you always ask for certificates of authenticity on unique pieces or have an item appraised by a trusted industry professional.