Gold Trading: Cash for Gold

The price for gold rose in early trading on January 26, 2011, despite a significant fall in exchange traded products (ETP). ETP has reached its lowest level in the past two years on the assumption that the global recession is finally over and that global recovery is gathering momentum. So far this year, the demand for gold has been high, as reported by the US mint.

The United States Mint manufactures a number of numismatic coins and other products every year which are made available to the public through sales and auctions. The popular US mintage includes proof coins, uncirculated coins, annual sets, commemorative coins and medal of honors. The purpose is to make these numismatic products available and affordable to the general public. Such gold trading takes place at a net margin of or below 15%.

The US Mint divides its total revenue obtained from its numismatic program into six categories:

• Recurring coins: This includes specially packaged high quality versions of circulating coins. Annual sets, Presidential Dollar Proof and the beautiful Quarter Proofs are some of the examples in this category.
• Ultra High Relief: One Ultra High Relief Saint Gaudens Double Eagle was issued by the US mint in 2009. This 24 karat gold coin is one ounce in weight and is a fine example of the beautiful US historical coinage.
• American Eagle: The all-time popular American Eagle series includes collectible proof and uncirculated versions. The value for this coinage depends upon two factors – their intrinsic gold content and historical importance.
• American Buffalo: Collectible proof versions of the American Gold Buffalo are also immensely popular with numismatists. The US Mint puts a single proof version of Gold buffalo on sale each year.
• Commemorative Coins: Recently, the US government has authorized a program to honor people, places and events that are of great importance to the country. The 2011 series for commemorative coins include $5 gold coins, silver dollars and half dollars. A surcharge amount is included in the prices of these coins, which is not reflected in their revenue figures. This surplus amount is distributed to some organizations that use it to finance different projects.
  

Gold Trading: A Couple of Aspects

There are two things that a gold trader should definitely be aware of. Trading gold for cash can be lucrative if the gold you own is of considerable purity and you also find the best place to sell it.

Purity of Gold: 24 karat is the purest form of gold. If you have a piece of jewelry that is 18k gold, it means 75% of it is made of gold. The price is determined by the extent of purity of your gold piece. So, the higher this percentage, the purer the gold and the more money you will be able to sell it for.

Best Place to Sell Gold: People typically think of a jewelry store as the first place to visit when they think of selling gold. However, a jeweler is not the best person to trade your gold, as he will not offer you the best price. A reputable brokerage firm can give you the best price and will also evaluate your gold for free.

Gold trading can be extremely profitable especially considering its current price, hovering around $1,400 per ounce. The trend in gold prices has been upward for the past five years. This makes the precious metal popular among investors with a long-term horizon.