Scrap gold prices are looking better and better as we head towards the “Big Beautiful Bill” becoming law.
While I won’t opine on the pros and cons of this bill, I will point out that it does something that will continue to bolster the value of gold: increase the deficit.
According to the Congressional Budget Office, the Senate version of the bill which just passed, will add $3.3 trillion to primary deficits and around another trillion dollars in interest costs. Bad for the country’s fiscal health, but great for gold investors.
Now typically, when we talk about gold investments, we focus on gold mining stocks and ETFs. Some that we’ve discussed in the past include …
But today, I want to talk about scrap gold, as this can also offer you another opportunity to profit from rising gold prices.
Scrap Gold for the Win!
If you’re unfamiliar, scrap gold refers to gold items (typically jewelry) that’s melted down in an effort to recover the gold content.
Back in 2005, when gold prices began their ascent from around $423 to more than $1,700, scrap gold was big business. It was actually the first time I had ever seen gold kiosks in shopping malls and grocery stores. Places where people could trade in their old gold jewelry and random objects for cash.
To be sure, these weren’t really designed to turn investors into millionaires. But they did allow a lot of everyday Americans to make a few bucks during a time of economic uncertainty.
I certainly took advantage of high scrap gold prices by selling a box full of old gold jewelry to a local gold dealer. I made a quick $612 for doing little more than unloading some old dust-covered jewelry that was never going to be worn again.
Indeed, $612 isn’t a fortune, but if someone handed you $612 in exchange for something you have, but have no use for, wouldn’t you take it?
I would. I did. And I’d do it again. Especially these days, with scrap gold prices clocking in even higher than where they were back in 2011.
Worth noting: the increased demand for scrap gold has also spawned a new technology that I believe could put most modern gold kiosks out of business: the gold ATM.
There are two things I know most people love: convenience and not having to talk to people. Couple that with the ability to make a few extra bucks, and you have a winner on your hands.
Last year, a company called INGHOOD, unveiled its gold ATM called the “Smart Gold Store,” which allows you to deposit your old gold jewelry, have it tested, then melted in about 30 minutes. When it’s done, it spits out your cash.
I haven’t seen one in the U.S. yet, but rest assured, they’re coming.
In the meantime, if you’re looking to unload some scrap gold, as of this writing, five grams of 14-karat gold is valued at $312.87. Not bad.
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