Some people are interested in buying gold for various reasons: jewelry, investment, heritage protection, etc. However, in the research and purchase process, some people make a series of mistakes, which can end up hindering the fulfillment of their objectives when acquiring this precious metal. In this article we will learn about the main mistakes when buying gold:
Not testing to verify purity level
The way to verify the degree of purity of a piece of gold is to carry out physical tests, the best known are the acid tests and the magnet test, in addition to the manual review for wear:
– Acid test: To carry out this test, specialists place the piece in a stainless steel container, apply a drop of acid (usually nitric acid), and wait to see the reaction. For example, in the case of nitric acid, if the piece turns “green”, it means that the piece is made of another metal that is not gold (or is simply gold plated), on the other hand, if the piece turns “white”, it is possible that the piece is silver and has received a gold plating. If the color it acquires is “gold”, the piece is brass and has a gold bath. Whereas, if there is no reaction at all, the piece is likely real gold.
– Magnet test: In this test, a powerful magnet is used to have greater effectiveness in the process, generally a neodymium magnet (an alloy of neodymium, iron, and boron) is used. As gold is not a magnetic metal, if the magnet is brought closer to the object, if the gold piece “does not move” it means that the object is not gold. It is important to note that this test is not as effective as nitric acid, however, it can be used in addition to other methods or tests.
-Manual review: In addition to the seals or purity codes, the user can also perform a manual review looking for signs of wear. In general, gold plating tends to wear and fade over time. Recommended places to look for “wear” on a piece are the edges of coins, objects, and jewelry. These points are normally in contact with clothing, skin, or surfaces, so they tend to wear out quickly. If you can see a different color in these areas, likely, the piece is not gold, but that it is made of another metal and that it is simply “plated” in gold.
Not taking security measures when traveling
It is essential to take security measures when traveling or transporting gold to other countries, for example, at border control sites it is always good to declare that we are carrying gold (one thing that helps a lot is to carry proof of payment for our gold pieces).
In the case of visiting an unknown country, it is important to reinforce security measures, an example of this is not talking to strangers (mentioning that we are going to buy gold or that we are carrying gold) or publicly displaying gold pieces or jewelry.
Regarding the land transport of gold pieces or jewelry, it is important to use only safe vehicles or taxis, for example, we can use the taxi service of an agency recommended by the hotel, on the other hand, it is not recommended to take public or service taxis application (especially if we carry gold).
It is important to know the level of security of the place we visit, each country and city has its safe and dangerous areas, therefore, it is important to take the necessary measures to use safe roads/routes and avoid theft. If we are staying in a hotel, you can request the “safe box” service (hotel service to store valuables), in some cases, some rooms have their own safe, if the hotel does not have these services, it is best to leave a trustworthy person in the hotel to “protect” our gold pieces during our departure from the hotel.
Not knowing the local laws and amounts allowed when traveling to another country
If we are going to travel, it is important to know the different laws of the place of destination related to gold, in this way we will not have problems with the local authorities. Let us remember that the fact that a person does not know a rule or law does not justify that he does not comply with it. The amounts allowed to transport gold vary in each country or region, for example, in the European Union, when entering or leaving said territory you can carry up to 10,000 euros in cash (or its equivalent in other currencies or assets such as gold) without the need to declare them. The amounts that exceed 10,000 euros must be declared to the corresponding customs authorities.
In the case of the United States, there is an obligation to declare to the customs or airport authorities that amounts greater than 10,000 US dollars are introduced or extracted from the national territory. If you take gold, it is convenient to have proof of purchase or invoices to be able to prove ownership of the gold pieces or objects.
Do not buy gold legally
Some people think that by buying gold illegally they are “saving” additional costs such as taxes, commissions, etc. However, it must be taken into account that if a piece of gold is sold illegally, there is a risk that said the piece is not authentic, in addition to the fact that we will not have proof of payment, which will be essential if one day we want to prove that said piece of gold belongs to us or if we want to declare that gold or transport it to another country.
Do not ask for proof or an invoice
It is important to request proof of payment when purchasing gold, as this will allow us to prove that we are the owner of said piece. In the case of travel, it will help us so that the customs/airport authorities can know the origin of the gold, in addition to allowing the calculation of the value of said piece or garment, since when certain amounts are exceeded (on average 10,000 dollars) declarations must be made or certain taxes must be paid.
