Buying and storing scrap gold has become a great way to invest. The good side of this type of investment is that it is low risk. This is because you always buy the gold at low prices and then store it. There are several places where you can get the scrap metal. The most common places are:

Friends and Family – You should ask your friends and family if they have any gold they want to get rid of. Gold pieces can be damaged rings, mismatched earrings, broken necklaces, and other scrap gold that you’d love to turn into cash.

When you buy from your friends, you should set a price that the people selling you the metals are happy with. You also need to make sure that the price leaves enough room for profit.

Newspapers – While it’s rare to find people advertising the gold pieces they have, there are some people who do. If there are no people advertising, you can announce that you are interested in buying the gold pieces. To reach as many people as possible, you need to advertise in a national newspaper.

Pawnshops: Pawnshop owners often have pieces of gold that they cannot sell to their customers; therefore, you should visit them regularly and see what they have.

How to buy scrap gold

Before you start shopping for the precious metal, you must first make sure you understand the value of scrap gold. The best way to calculate the value of gold is to take the spot price of gold and then divide it by 31.1 to get grams. You can also divide the spot price by 20 to get the weight of one cent.

You then need to multiply the number you get by the purity level of the gold.

Once you have known how to value the metal you want to buy, you must obtain a license. You need to visit the government offices in your city and you will get a license that allows you to buy the metal.

If you don’t have money to get licensed or don’t want to go through the hassle of getting licensed, you should consider working with a licensed broker.

Conclusion

These are some of the best places to buy the precious metal. Regardless of where you buy your metal, you want to make sure you buy it from a reputable seller.