Why Scrap Gold Is a Better Investment than Gold

High gold prices can make this precious metal seem like a desirable investment. But with the sheer variety of options available, how do you know what to choose when you want to invest in gold? One commonly overlooked variant is ‘scrap gold’, which can be one of the better assets on the market – even more so than gold itself. 

There are several reasons why this is the case. In this article, we’ll start by examining what scrap gold is. Then, we’ll look at the advantages it has over other types of gold, such as bullion or ETFs.

At Elite Pawnbrokers, we sell a range of gold and silver bullion, as well as other prestige assets like gold jewellery. Our experienced appraisers are also happy to buy or loan against your scrap gold. To learn more about how we can help you invest in gold or to request a free quote, simply contact us at 0508 273 554 today.

What Is Scrap Gold?

In essence, scrap gold refers to any kind of gold that no longer has value in its current form. This often includes broken bits of metal or leftover pieces from the jewellery manufacturing process. Some examples include:

Gold Pieces

  • Gold dust, grindings, pieces of wire, and small beads of melted gold
  • Gold findings used to manufacture jewellery, like chains and clasps
  • Bent or broken pins, brooches, charms, and rings
  • Watchband clasps and watch cases
  • Dental bridges, bars, and fillings
  • Outdated jewellery

Gold-Plated Items

  • Another great way to invest in gold is by purchasing assets coated with this metal.
  • Gold-plated jewellery such as rings or watch-cases
  • Gold-plated spectacle frames
  • Gold-plated bar- and tableware

Gold Alloys

  • Pink Gold
  • White Gold
  • Green Gold
  • And more
Why Scrap Gold Is a Better Investment than Gold
Scrap Gold

Why Choose Scrap Gold If You Want To Invest In Gold?

There are many benefits to choosing scrap gold when you want to invest in this precious metal:

Better Prices

Scrap gold tends to be smaller than gold bullion or bars. It also frequently includes impure gold and is usually second-hand. For these reasons, you can often purchase it at prices well below the market value. For that reason, choosing scrap when you invest in gold offers you the potential for higher returns, especially if you are savvy about your initial purchase.

Less Risk

When you buy scrap gold, you can sell it for an immediate profit. This means that you won’t have to worry as much about fluctuating market prices or the risk of significant losses on your investment. What’s more, physical gold is relatively secure against inflation and currency changes, as its value is timeless. Unlike digital assets, scrap gold can’t be hacked, either!

Lower Barriers To Entry

You don’t need a complex, large-scale operation or specialist equipment when you buy scrap. What’s more, by choosing scrap when you invest in gold, you won’t need as much on-hand capital compared to other forms of this precious metal, like large bars, bullion, or funds. That’s why scrap gold is a fantastic option for newer investors.

Minimal Additional Costs

Scrap gold is often small in size and can be purchased in small, even individual quantities. This means you’ll need less security. As a result, you’ll save money you’d otherwise have to spend on special transport, storage solutions, or insurance for your assets. These reduced outgoing expenditures will help maximise the return on your investment. In addition, unlike other types of assets, when you choose to invest in gold, you won’t have to spend time or money on maintenance.

Easier Liquidation

Scrap gold is easy to transport to a dealer and sell. That makes it a great option if you need an investment that you can liquidate quickly. After all, your mortgage, supermarket, and utility bills all have to be paid with money, so scrap gold is fantastic if you need cash on hand fast. In contrast, when you invest in an ETF, you won’t actually own the metal in the fund. This means that you can’t take delivery of it if you need it.

Greater Satisfaction

Unlike data, precious metals are assets you can actually hold, which can make them far more satisfying to invest in gold. There can be a real psychological benefit to being able to see and feel your investment, and it can serve as a special memento of your financial journey.

Get Started On Your Investing Journey With Elite Pawnbrokers Today

Are you ready to see the returns scrap gold can offer you? Just turn to the trustworthy, reliable team at Elite Pawnbrokers. Our experienced appraisers can provide you with free quotes right over the phone!

We also have an incredible range of gold assets on sale if you’re looking to expand your range of investments. For more information and to discover why we’re the Bay of Plenty’s favourite pawnbrokers, just get in touch with us at 0508 273 554. Why wait? We’ll help you begin to invest in gold today.