Caution: Gold and Gold Buyers

It looks like gold is on the way up.

Today’s end of New York trading showed the per troy ounce price was slightly down from the Friday close. Friday was $1227.50 and today’s last entry was $1221.40.

But, over the weekend, dealers began increasing their offers to buy proof gold at $2000 per ounce. Different from bullion and from standard issue gold coins, proof gold with its mirror finish  and lustrous design adds a premium above bullion  prices. Most interesting is that this dealer to dealer pricing began increasing due to the after market activity.

For the general public, these increases in prices – both bullion and proof – will yield an increase in the “we buy gold” advertisements – on TV, on the radio, on billboards, in newspapers, on the internet, and where they think they will get the most results from their advertising dollars.

If you want to sell gold, either coins, jewelry or other scrap gold, please be careful. Asking several different buyers what they are paying is a good idea. Just because someone tells you they are the high buyer does not make it so.

Rather than stand on the soapbox, take a look at this excellent article from earlier this year. The Examiner in Southeast Texas researched the buyers and detailed their findings in:  Treasure hunters or gold diggers?

The article is rather long, but if you need or plan to sell gold (or silver)  in the near future, the time reading will be well-spent.