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October 2013

The Modern-Day Gold Buyer Rush in Boston

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Many Boston investors are anxious to join what is known as the “modern-day gold rush” as the increasing price of gold and other precious metals over the past decade has driven the desire to own them. Before you join the rush, you should be aware of a few relative facts.

For a gold buyer, the primary form in which the purchase is made is in bullion. Bullion refers to gold and silver bars or coins, such as the American Eagle. Other precious metals can be purchased in bullion as well. During times of economic uncertainty in Boston and across the country, many investors consider gold and silver bullion to be a great investment, as it is protected against inflation or hyperinflation.

Experts have categorized the current economy as one going through a precious metals phase with the number of gold coins sold up 82% over last year. One factor driving up the price of gold is demand. With this unsettled economy, many investors are looking to protect their assets by purchasing bullion. As a result, the supply is going down while the demand continues to rise – the classic Keynesian formula for increased prices.

If you’ve invested in gold or silver bullion, and are looking to sell in Boston, there are a few additional things you want to consider to protect both yourself and your assets.

First, check out the dealer to whom you are choosing to sell. In the bullion market, scams are unfortunately quite common. Counterfeit, fraud, theft and robbery have been reported during the purchase or sale of bullion. Keep your privacy, and don’t openly discuss if you have invested in bullion, particularly if you have your assets stored at home. It is highly advisable to keep any and all assets in a safety deposit box.

The second thing to keep in mind is the speed at which you are looking to sell. While there are many online buyers of bullion, the process can be more time consuming. Look local and you can liquidate much quicker, allowing you to invest your payout into other investments faster.

As bullion is considered currency, a currency exchange rate will be incurred. Dealers will charge a “cost of conversion” which ranges between 2 to 6%. This cost is standard and should be taken into account when predicting your total cash out.

If you own bullion or coins, and are looking to sell, Bromfield Jewelers in Boston is a certified, reliable, and reputable dealer that you can trust with your investment.