The gold market has been buzzing over the last few years. You should keep in mind a few things if you wish to trade in the gold market and get value for your money. For instance, you should know the type of gold you’d want to trade and how you can make your business succeed.
For instance, you may consider trading gold nuggets. In this case, you’ll need to know how to value your gold nuggets and get the best price for them. Besides, it is vital to value gold nuggets correctly so that you pay the right price when purchasing them.
This article is a guide that will help you make wise decisions when trading gold. It will provide you with tips and advice that will help you avoid disappointments in the gold market. Read on to understand what gold nuggets exist in the market and how you can trade them efficiently.
Let’s get underway.
What’s a Gold Nugget?
You need to understand what gold nuggets are before looking into their worth. A gold nugget is a piece of gold that often occurs naturally and whose rarity increases with size. But then, gold nuggets can also occur artificially, as you’ll see later in this article.
Unless they are artificial, nuggets are extremely rare to come across these days. This rarity makes them more expensive than artificial nuggets made from melted electronic parts. However, it is worth remembering that nuggets cost more than their gold content since they’re not pure gold.
The price of a gold nugget depends on a wide range of factors. For instance, the quantity and purity of gold a nugget has can determine how much you’ll pay or get for it. Thus, there’s never a uniform price like it is with the gold bars sold by dealers such as Acre.
Main Types of Gold Nuggets
As stated earlier, it is vital to start by knowing what you’ll be trading. And gold nuggets do not come in many types that will make choosing what to trade daunting. You only need to choose between natural and artificial gold nuggets.
Each has its pros and cons, so it’s crucial to know what you’re getting into. In this section, we’ll take a deeper look at natural and artificial gold nuggets.
Natural Gold Nuggets
You may decide to deal with natural gold nuggets as a gold trader. These are naturally occurring pieces of native gold. Natural nuggets are rarely found in old gold mining sites, hard rock gold deposits, and close to gold veins or lodes. They end up in these areas because of weathering.
One question many people ask is whether natural nuggets are pure gold. Well, you can’t state that all-natural gold nuggets can be pure gold. Their purity differs depending on location. It’s easy to find pure nuggets in places that have produced huge natural gold nuggets like Australia.
So, how much does a natural gold nugget cost? One factor that determines this is the quality and purity of the nugget. Other factors like size, weight, attractiveness, etc., also matter. The rarity of natural gold nuggets has, however, made their prices rise in recent times.
Artificial Gold Nuggets
The only other type you can consider is the man-made nugget. Goldsmiths make nuggets to collect gold remains from their work and get some value from it. This makes the purity and quality of artificial nuggets differ depending on the materials melted to make one.
The more gold an artificial nugget contains, the purer it is. Usually, the purity will range from 40% to 55% if the goldsmith manages to extract enough gold from various gold-coated items. But then, the quality can also go as low as 10%, making the nugget almost profitless.
Like natural nuggets, the quality of an artificial nugget determines its price. An artificial nugget with more pure gold will cost more than one with less gold. Thus, there’s no standard pricing for artificial nuggets. But then, they are also not valued, and not many people collect them.
How To Trade Raw Gold: The Process
Buying gold isn’t as straightforward as it seems. There are various hurdles that people who trade gold face every day. Your ability to overcome these hurdles will determine your success. As a buyer, you need to be more vigilant since there’s a lot of fake gold in the market.
Therefore, you shouldn’t start at determining the value of your gold. Your research should start at finding a reliable gold dealer like Acre. After you find a dealer, the next step should be to check the quality and purity of their gold to verify it’s real and of good quality.
Here is a summary of the steps you should follow;
- Inspect the gold physically to ensure it looks and feels like real gold
- Estimate how fine it is, and if you can’t, find an experienced person to help
- Estimate how much dirt could be in it
- Check the gold market prices
- Make an offer
However, there’s no sure-fire process to buying gold nuggets. It is more of an art and science than following specific cookbook directions. It would help if you had plenty of experience, especially when differentiating fake from real gold and checking its quality and purity.
Which Is More Valuable: Gold Nuggets or Gold Bars?
The best way to discuss the worth of gold nuggets is by comparing them with other types of gold. For instance, how does the value and price of gold nuggets compare to gold bars? What’s more expensive than the other and why is it expensive are pertinent questions.
Generally, the value of all types of gold depends on market prices. It also depends on obvious factors like size, weight, purity, quality, etc. Speaking of size, for instance, large gold bars are more expensive than small ones. The same also applies to gold nuggets.
However, gold nuggets are more valuable when comparing the two. Remember, nuggets are rarer than bars which you can buy from various industry dealers. Thus, a gold nugget and gold bar of the same size won’t hold the same value; a nugget will be a little expensive.
But then, some gold bars are also rare. Suppose you compare it with standard gold nuggets of the same size, the gold bars will be more valuable. Thus, no strict formula determines the value and price of either a gold bar or nugget—these factors do.
Which of the two types, a gold bar and nugget, is more valuable? You have to say that it is a gold nugget. Remember, gold nuggets are rarer than gold bars, especially if they are natural. You can easily find a gold bar that makes it hold a little less value than a gold nugget.
How To Value and Sell Your Gold Nuggets
What if you want to buy and not sell gold nuggets? Valuing your gold nuggets is also a skill that you should know before getting into the gold industry. You’ll need to follow a few steps to ensure you get the best price for your gold without exploiting your customers.
The first thing you should do is find the right market for your gold. If you sell to unscrupulous dealers, there’ll be zero chances of getting fair value for your gold. Thus, do extensive market research to know where you’ll sell the gold before starting the process.
Once you identify the best place to sell gold, follow these steps to value your nuggets.
- Consider the rarity of your nuggets—the larger, the rarer, and the more valuable.
- Check the purity. You may need an expert to help you know how pure it is.
- Consider the shape and beauty of the nugget.
- Set a price for it.
Those are the easy steps you can follow to ensure you value your gold nuggets correctly. If you are stuck with valuing it, you can find an experienced person to help you. The aim should be to get the best price for your nuggets and also avoid exploiting your customers.
Gold is one of the best investments you can consider today. It comes in various forms, and nuggets are an excellent example of gold that you can purchase. To trade them perfectly, you’ll need to understand how to value them so that you buy and sell them at the correct price.
There are two major types of gold nuggets in the market, as discussed above. You should be able to differentiate between the worth of natural and artificial nuggets. The rarer or exceptional a gold nugget is, the higher the price you should expect to pay for it.
This article has shared excellent tips to help you value gold correctly. After reading and implementing these insights, you can be sure that you’ll pay for or sell nuggets at the right price. You can contact us if you ever get stuck when looking to value your gold nuggets.