You might have seen advertisements and commercials for buying and selling gold in public, on the internet, or on television. Oftentimes, these ads promise vast wealth at little personal risk. However, the reality of the situation is a little more complicated than that. If you are interested in learning about the subject, here's a brief introduction to the world of buying and selling gold.
What exactly is the gold market?
At the most basic level, the gold market is the trading of a commodity. If you are familiar with the stock market, then buying and selling gold works somewhat similarly to buying and selling stocks. However, there are a couple big differences that separate the two.
First of all, in the stock market, there are thousands upon thousands of different stocks that are all traded and that all affect one another. In the gold market, you are only looking at the value of gold.
Second, stock prices are a much more abstract concept. A stock is a fraction of potential ownership of a company or a measure of the value of a company. On the other hand, gold is a physical asset which you can touch and feel. This physical asset can be used for purposes other than buying or selling, such as the creation of jewelry.
Third, stocks are almost always traded electronically or directly at a stock exchange. On the other hand, gold may be traded anywhere.
Finally, gold is slightly less volatile, though not necessarily more predictable, than stocks.
Getting Started
So if you are interested in trading gold, then the first thing you need to do is acquire some gold. This can mean melting down old jewelry or buying gold. Either way, you will then want to convert it to a transferable format, specifically coins or bars. Using a universal format such as coins or bars makes it a lot easier to conduct transactions, since both parties will be able to accurately gauge the amount of gold present, especially if you are using government-issued gold coins.
Before conducting any transactions, you should spend a few weeks or months familiarizing yourself with the price of gold and the trends of the market. You will want to watch for rising and falling trends so that you don't make a massive mistake. Once you are confident that you should sell based on the current climate of the gold market, then you can pull the trigger and make a profit by selling your gold to a company like Certified Rarities.
Share
