November 25 2018
Have you noticed that over the past few years, there have sprung up many companies which are trying to buy as much gold as they can lay their hands on. What are these companies doing with all this gold? Maybe you have seen commercial ads on TV which show a person exclaiming to his friends, “Hey, I got $600 for a piece of scrap gold that I sold off”. Have you ever wondered what Hartford Gold Group and similar companies are up to which are buying scrap, unwanted gold from consumers from around the world?
In fact, there are some people who believe that these gold buying companies are doing so on behalf of the government. It is the belief of some folks that the USA government is trying to secretly buy as much of the planet’s gold as possible and it wants to keep its activities hidden for some unperceived reasons that is why it is taking the help of these companies.
However, the truth is something else. It is not the US or some other country’s government which is trying to hoard up as much gold as possible. The actual buyers are common investors like you and me who are going after gold like never. The price of gold is at an all-time high and investing in gold is considered a very smart move right now by many experts. So, the companies who are buying the scrap gold from consumers are refining that metal and then reselling to investors at much higher rates.
So, these companies are acting like middlemen. They will buy any scrap gold which can include things like old jewelry, rings, bracelets, coins, and other such items. Some companies will also buy platinum or silver items too.
So, what exactly do these companies do after buying scrap gold from you? First, they will refine it. Let us understand what is refining – as gold is a soft metal, it must be combined with hard metals in order to make jewelry items like rings etc.
Refining is a process which involves melting down the jewelry so that other metals can be separated from gold. Refining is a complex process and involves many steps. The result is that you can get gold which is 99% pure. It is in the form of powder. This is then melted down again at a temperature of 2200 Fahrenheit, and then poured into gold bars. As you can imagine, this resulting gold bar which is 99% pure, will fetch a much higher price in the market. As a lot of people are investing in gold these days, there is no shortage of buyers for gold.
As a consumer you have a double opportunity now. If you have unwanted, broken or old gold items then you can sell it off and get some spare cash. On the other hand, if you want to invest in gold, then you can invest in gold bars which a lot of companies are now selling to consumers.