Most of us have old gold jewelry hanging around that we do not want, either because it is broken, not in style anymore, or something we just do not wear anymore. Many people think by keeping the item they have saved the item and its value is going to continue to go up. However, this is not true and depending on how long you hold onto it you could lose out on money. Here are a couple reasons why:
1. Gold Prices Are Volatile
The price of gold changes daily depending on the market. If you simply wait to sell your gold based on when you think the best time will be to sell old gold, you could eventually miss your chance to sell it at a higher price. If you wait too long, you may not receive more money than what you could currently receive due to changing gold prices, and you could miss an opportunity for better resale value.
2. Jewelry Has a Limited Life
Gold jewelry can become no longer fashionable or out of style. If you sell your jewelry at a different location, such as a private buyer or jeweler, older out-of-date fashion styles will likely receive a much lower selling price than equivalent newer versions.
3. Making Charges Are a Hidden Cost
When you purchase gold jewelry you pay a making charge for the production of the item. When you return to a jeweler to sell your old gold jewelry, all jewelers will subtract the making charges from your payout. Therefore, you will be paid less than what you originally paid for the jewelry, regardless of if the gold prices increase.
4. Interest That Accumulates on Pledged Gold
Many individuals use gold that has been pledged to banks or finance companies to acquire loans. The benefit of this is that you can access money quickly. However, over time the loan will accumulate interest. By prolonging the retrieval of your pledged items, you will ultimately pay more interest than you would have otherwise, thereby reducing the amount of money you receive when you get your gold back.
5. Safety and Storage Risks of Gold
If you have gold in your possession, you run the risk of theft or losing it. There are costs associated with safely storing valuable items in a bank or financial institution. In general, whenever you keep your precious metals, there may be additional costs associated with it, which will reduce its financial advantages over time.
6. The Opportunity Cost of Holding Gold
Gold that is held in your home will not generate any returns. If you sell your old gold, you can receive cash to use in emergencies, invest, or fulfill other necessities. This allows your money to grow instead of staying idle.
In Conclusion
Although holding onto your jewelry can be perceived as valuable, if you hold onto it for too long you may be losing money on it. If you sell your old gold at the best time possible, you can maximize the financial advantage by receiving a fair price, with no hidden fees, and gain additional cash that can generate more income through investing.
Mahika Gold provides instant and secure payment on current market values for your gold.