Gold has always held a special meaning and place in global finance and in world cultures. People have been buying and selling gold since the dawn of civilisation however, gold remains one of the most misunderstood assets. However, the is no form of money that carries the same historical baggage but as JP Morgan once said “gold is money – all other things are just credit”
Gold as money
Throughout history humans have used all kinds of things as money. We have used shells, cattle, tobacco and even cotton. Gold has always been more valued than all these other things because of its properties, its malleability, durability and its scarcity. And because of these things gold has always been expensive. Its value is compounded by the fact that it is hard to come by, it requires considerable manpower to dig gold out of the earth and it costs a whole lot more to process. An ounce of gold requires a lot of time and money. It takes roughly thirty-eight man hours, 1400 gallons of water, 565 cubit feet of clean air and lots of electricity to mine and refine an ounce of gold from mining ore. Furthermore, the refining process needs chemicals like cyanide, borax, lead and lime which aren’t cheap to come by. This is why gold recycling is so important. It reduces the pressure on mines to continue mining for gold. Cash for gold businesses play a major role in the value chain.
There are people who have reservations about gold recycling. There are myths about what gold recycling is especially with the sudden flurry of gold buyers. There are a couple of myths about the cash for gold business:
#1. Gold recycling is unsafe
Gold is a valuable metal and there are a lot of people who would like to get their hands on it. Some even use questionable means. Not every gold broker is out to get you, there are reputable brokers out there who will buy the gold you have to sell at reasonable prices. Gold brokers are aware of the bad reputation the industry has and they have put in place things and systems to put your mind at ease. For instance, online brokers often offer insurance on your gold and they will return your gold quickly if you are not satisfied with their appraisal and offer.
#2. Gold recycling is difficult
Gold recycling simply involved gathering your old, damaged and unwanted gold and finding a good gold broker to sell it to. It’s even simpler and more convenient to use an online gold buyer. You simply send your gold, accept the offer and get a check or money in your bank.
#3. It’s not profitable
There are people who believe that collecting and recycling gold is a complete waste of time and money. We are talking about gold: here which is valued at $1300/ounce. You only need a couple of items to get a great price. It would take months for say, an aluminium can recycler to collect enough cans to make the same kind of money.
Gold is valuable to gold dealers and it will be worth your time. Some people are into collecting gold and storing it for the future. No one would actually store aluminium cans as financial security for the future.
#4. Gold buyers are scammers
This is more than just an unfounded myth but an unfortunate reality. There are gold and brokers who present themselves legitimate dealers when they are not. They may lowball you on the price of your gold. There are trustworthy dealers that you can find locally and online. You just need to take time out to do some research.