Common Myths About Gold and Silver Industries Debunked

(Newswire.net — July 8, 2016) Upland, California — California Gold and Silver Exchange (CGSE) debunks several common myths related to the gold and silver industries. The company is a family-owned and operated business that buys gold, silver, and other precious metals in almost all forms—whether they are new, mismatched, broken or single items. They provide one of the highest payouts in Southern California and offer free estimates to clients. They also sell gold and silver bullion, silver rounds, and silver bars.

One of the most common myths about the gold and silver industries is the belief that a person needs to have a lot of money to invest. California Gold and Silver Exchange (www.cagoldandsilver.com) invalidates this, saying that an individual can actually get 1 oz of silver for around $20. To further back their statement, they add that 24k pure gold bars can come in as little as 1 gram for around $50. What this means is that purchasing gold or silver is not as difficult as what most people think.

However, the company says that jewelry is not necessarily an investment and that an individual could be paying 10 times more than the actual gold value when he buys a piece of jewelry. This is because there are multiple factors that a person does not get back when paying for a jewelry piece, which include the cost of manufacturing, the sales person commission, the marketing for the item, and the general overhead of the company. An American Gold Eagle coin, on the other hand, will cost about 5% over the price of gold in general, with a 5% spread between the buy and sell value.

Another common myth is the idea that there are currently a lot of fake gold and silver items. According to California Gold and Silver Exchange, the most common fake item that could be seen is the Morgan and peace silver dollars. They are quite easy to spot since they do not have the proper weight and they also stick to a magnet. While there may be fake gold and silver bars, they are actually few and far between. If the price is too good to be true, then the item being sold is usually a fake. Fortunately, reputable dealers would not sell fake items, says CGSE.

California Gold and Silver Exchange also states that items sold on television are not necessarily rare. In fact, they are usually priced three to five times more than the regular value. Companies that market these items on television typically prey upon novice collectors to maximize their profits.

Lastly, CGSE says that graded modern coins may not bring a higher return when sold since many graded modern coins are common coins. Even if the coin was in the highest grade, if they made 40 million of it, it would never be rare. To learn more about the company, visit hwww.cagoldandsilver.com.