- May 25, 2012
- Category: Gold
We have all seen them. Those “Cash 4 Gold” signs being waved around frantically to help pawn shop owners drum up more business. It seems like these people are on every street corner. Thus the question arises, “Should I sell my scrap gold?”
You may indeed get some decent money for your old gold jewelry and coins that have been collecting dust for the past 15 years. However, consider the following…
First:
Think for a moment about why this has become so popular. The fact is, there is money to be made from gold! Gold has recently dropped below $1600 and has already started to make its recovery. Soon, gold will be on its way to $1700.
These shop owners know that the gold market has just started to show its true potential. They have the cash to buy out unsuspecting customers and are happy to do so. Yes, they may be buying your gold at a decent price, but after they buy a few ounces here and there it can easily add up to more than $5000 each time they send off their lots to the smelter. Do this a few times a week and now a simple pawn shop is turning a significant profit.
Next:
Think about what you are trading your gold for. Cash? Wouldn’t you rather have more gold? Gold has proven to be a safe haven for investors for years and will continue to be this way for many decades to come.
Don’t trade your gold for cash. “Trade Your Cash for Gold” should be the saying. Protect your paper assets and turn them into something more stable. Inflation can wreck havoc on the dollar, but does wonders for gold.
Lastly:
Consider for a moment how these shops make their money. When you bring in a ring or other piece of jewelry that is only part gold, how much is it worth? Do you know what percentage of gold it is? Do they know exactly? Sometimes it can be hard to tell.
Because of these uncertain variables, pawn shop owners can easily take advantage of unsuspecting customers. These so-called experts are the ones that need to make a profit and are willing to fudge the numbers if it means they are coming out on top.
The Moral of the Story
Do not sell your gold. In fact, if you are really concerned about your wealth then buy more of it. Lots more! As we mentioned earlier in this article, gold has been going up and will only continue to grow as the days and months go by. Contact us here at American Bullion today to discuss how you would like to move forward with protecting your paper assets and creating a more stable future for you and your family.
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American Bullion specializes in adding gold and silver to retirement accounts. If you have a question or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a precious metals specialist.