First Things First: Testing Gold Before Buying It

Gold Bars in LondonNow that you have managed to build a stable investment portfolio, you are prepared to take the other forms of the asset. For starters, you need to lay the groundwork for your portfolio. This means that you need to invest in safe assets, such as health and life insurance. After that, you can take riskier forms, such as stocks. And if you covered all these areas, you can invest in tangible assets, such as gold.

If you are planning to get jewellery or buy gold bars in London, there are some things you need to consider. Some measures will protect you from fraudsters and scammers.

Check the Stamp

If you are planning to buy from a pawn shop or a referral, you must check the item’s stamp. Bars and jewellery bear a small stamp that indicates their purity and karat. If the seller claims that the gold comes from a reputable manufacturer, check the item for this stamp. There is an exception, however. Old gold products do not bear stamps.

Use a Magnet

You need to keep in mind that gold is not magnetic. Use a magnet and see if the gold will be attracted to it. If it does, do not buy it; it is fake or it is mixed with other metals. This is the most common method used by experts.

Check the Density

The density of gold is 19.30 g/cm3. If your seller claims that the gold is pure, drop it in the water. If the gold sinks, it is pure. Otherwise, it is fake. Other than the density, you need to make sure that the gold does not have traces of rust. Gold does not rust.

These are only some of the things you need to keep in mind when buying gold. To avoid the consequences of dealing with fraudsters, you need to buy only from reliable sellers.

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