Buying gold or silver for your personal collection or as an investment is a wise decision. You can collect broken jewelry, gold coins, and even precious metals in electronics, such as cell phones and computer chips. When buying gold and silver you want to know what to watch out for so you not only get a great deal on your gold, you get quality as well. Here are things you should look for when buying gold as a newbie.
Start with silver
Silver may be worth less per ounce than gold, but it's a great way to start when you are investing in precious metals. Silver is almost always hallmarked with markings like .925, .999, .800, etc. to indicate the silver content in a piece. The higher the hallmark, the more silver a piece has. For instance, silver that is marked .999 means that that alloy is 99.9% silver with 1% of impurities. You can collect silver utensils, antiques, coins, and jewelry for much less than you would pay for gold. Since silver is less of an investment risk due to cost per ounce, you can practice your buying techniques with this precious metal and worry less about mistakes along the way if you buy something that isn't authentic or is plated instead of being solid.
You wouldn't throw all your money into a single stock in the stock market, and the same rule should be followed for buying gold. Choose a dealer and buy a few pieces at a time, such as a marked gold ring or bulk broken jewelry. Watch out for gold-plated jewelry, since it will not be pure gold and will be worth less than solid gold items. After you've made a few purchases and are confident you can buy gold while getting a decent return on your investment, you can move on to larger purchases. Talk with a place like Gold for Cash for more information.
Pick the right coins
Some coins give you a greater return on your money than others. Well-known coins that carry a high pure gold content will be easier for you to collect than questionable foreign currency that doesn't have a known value or history. Do your research and choose the best coins that dealers will buy at their highest value so you make a wise investment rather than a risky one. The best way to do this is to talk to a gold dealer personally and ask which coins they recommend to collect.
Buying gold and silver for your own personal use or investment is a great hobby. Start with silver, shop small, and dabble in popular gold coins to start off on the right foot!