By : Katie Day
For hundreds of years, gold has always been considered as one of the safest things to invest in. In recent times, many investors are investing in scrap gold due to its many benefits. The scrap gold is usually obtained from old jewellery and broken appliances which have some parts made from gold. Buying scrap gold is amongst the favorite investment options of many investors today due to the following reasons :
1. It is affordable
Scrap gold has the same value as pure gold. The only thing that makes the two different is the name and price. The price of scrap gold is by far much cheaper than pure gold. For example, when you purchase scrap gold that weighs the same as a gold coin, you will spend less. This has made scrap gold a preferred option among investors with a limited budget.
2. It is available in small denominations
If you intend to buy a bullion coin, you can never get it in a small denomination. However, when buying scrap gold, you can buy the amount you want depending on the money you have. This way, you do not have to wait until you get a large amount of money to invest in gold. You can start by buying small amounts of scrap gold and then adding more and more in small amounts until you reach the investment level you require. This is a benefit that you cannot enjoy when purchasing a regular gold coin.
3. It is easy to sell
It is easier to sell scrap gold compared to selling a gold coin. This makes scrap gold a good option for investors who want to invest in something that can be converted into cash easily. Scrap gold is very easy to sell because there are many people who want to buy it. Therefore, when you have scrap gold items, you have something which can be cashed out easily.
4. You will not have to pay huge taxes
Scrap gold and pure gold bullion coin are not categorized in the same class. Hence, when selling your scrap gold you will not have to pay such high taxes like when selling a bullion coin. The tax benefit is one of the major reasons which makes the demand for scrap gold very high.
5. You can use it for barter trade
During tough economic times, you can barter your scrap gold for commodities that you need. This is because you can easily measure the amount of scrap gold that has almost the same value as the commodity that you want. If you have a gold coin on the other hand, it is very difficult to use it to barter. This makes scrap gold an ideal tool which helps an investor to survive if there is a financial collapse, for example.
6. There is high demand for gold
There is high demand for scrap gold all over the world. In fast growing countries like China, Brazil and India, the demand is even higher. This is because there are many items and technologies made in these countries that utilize gold. In these countries, scrap gold can fetch very high prices.
Scrap gold is a perfect investment solution for people who wish to invest their money effectively and safely. There are many stores selling scrap gold such as Dmmex. However, when buying scrap gold, you have to be careful not to buy gold with a low purity level. Learn how to determine gold’s purity level to prevent yourself from being tricked. You can also take the scrap gold to gold experts to verify its authenticity before purchasing it.
This article was written by Katie Day. Katie is a blogger who researches and talks about the benefits of scrap gold and why more and more people should invest in it.