Buying Scrap Gold
- 1Manage your risk. Collecting and storing scrap gold has become a popular investment strategy. With gold prices steadily rising, buying scrap gold is a low-risk way to invest in this valuable resource.
- Term (duration) of Investment: Varies
- Nature of Investment: Low risk - Gold is the safest investment option available and the potential reward far outweighs the minor risk.
- Profile of Investor: Ideal for the first-time gold investor, or for someone just looking to set something aside for a rainy day.
- 2Keep it in the family. Ask family and friends if they have gold they are looking to get rid of. Practically everyone has broken necklaces, damaged rings, mismatched earrings and other forms of scrap gold that they would love to turn into cash. Work out a price they are happy with, while leaving plenty of room for profit.
- 3Place an ad in the newspaper. Have an ad run in both the classified section and the help wanted section of your local paper. Most people who are looking at the help wanted ads are in financial distress of some sort, so placing an ad offering to help them make money by selling gold to you can work wonders.
- 4Place an ad on Craigslist. This is similar to a newspaper ad, yet is entirely free and has the potential to reach more people.
- 5Monitor Internet auctions. Gold items will often sell for less than their scrap value, making them a great investment tool. Be sure to factor in any taxes or shipping costs before bidding.
- 6Develop relationships with local pawnshops. Leave your contact information with them and have them contact you if anyone comes in to sell gold items that the pawnshop doesn’t want. Some smaller shops may not have a refiner or even want to deal with scrap gold.
