In most countries, gold prices have hit historic highs. Most people are thinking of selling old gold jewelry to get quick money to start a business or invest. If you have inherited gold jewelry from your mother or some other close relatives, it is the best time to sell it and earn a handsome amount.
Before you step out to sell jewelry, it is important to be knowledgeable about the current market rates and the best place to sell.
The buying and selling of gold can be quite intimidating, most people are not quite sure whether they are charged a fair price. It is important to get the cash amount worth the jewelry and the beautiful memories it represents.
How to Sell Gold Jewelry?
First of all, every piece of jewelry that one owns has a significant emotional value. Instead of acting on impulse, ensure that the emotional value does not outweigh the selling price you will receive.
Mostly, people sell broken and outdated jewelry items having no emotional significance.
Simply put, gold is a valuable metal, and the latest market rates can attest to that. Since selling gold can be intimidating, you have to do it in a smart, savvy way to sell it for a higher price. Importantly, the seller has to know the best place for selling gold.
Where to Sell Gold Jewelry
A seller can avail of online services or sell jewelry at local jewelry stores and pawnshops, or to professional gold buyers. The cash you will get for the jewelry will depend on where you choose to sell your jewelry.
Jewelry Stores
It is a safe, convenient, and popular way of selling gold jewelry, however, selling gold to a jeweler will not fetch a higher price than selling to a gold buyer.
Most jewelers do not have calibrated scales checked by the Weights and Measures Division, therefore, a seller can not expect to get accurate payment.
Research the jeweler’s credentials and reputation online or check their ratings at Better Business Bureau (BBB).
It is wise to get quotes from different jewelers to check the prices offered, the cut they take, and their ability to recognize special pieces of jewelry.
Pawnshop
This option is not recommended at all unless you want to get cash faster. Any seller will walk out the door with cash in hand, however, most pawnshop owners do not offer the best prices.
They do not have the right tools or equipment to measure the gold and its purity. Generally, selling gold at a pawnshop should be avoided unless you want the cash in like 10 minutes.
Professional Gold Buyers
Look up a professional gold buyer in the BBB directory and check online reviews and ratings.
They offer the best prices as their scales are calibrated by the official Weights and Measures Division.
Since gold buyers are only involved in the buying of gold, therefore, they would not pressure you into buying other jewelry items like jewelers. Also, gold buyers are usually licensed by the Department of Justice to help police recover any stolen gold.
Sell gold to local buyers with established presence instead of companies that come one day and disappear the other.
Online Services
This method for selling is not as convenient as the aforementioned options. Also, if you are pressed for time, do not opt for this selling method.
The seller has to pack the jewelry and ship with an insured shipping label and wait about 24 hours after the shipment has reached the buyer to receive money in the form of a cheque or wire transfer.
Choose reputable sites and confirm that they have a return policy to return the money in case the seller is not satisfied with the offer.
Before selling, check the business rating on BBB or the Jewelers Vigilance Committee website.
Selling Gold Jewelry for the Best Price
Most people are unfamiliar with the process, therefore, do not question the jeweler’s offer.
Most jewelers and pawn shop owners trick sellers and buy jewelry at a lower price. Before you set out to sell, be well-prepared and know your gold worth to negotiate a better offer.
Determine Gold Melt Value
For gold coins and bars, the seller is expected to receive 90% to 95% of the current market value.
Conversely, selling gold jewelry only fetches 70% to 80% of the melt value. This difference is due to the buyer’s cut and the cost of melting and refining the gold to make a new jewelry item.
On the other hand, if you are selling a designer piece that you bought from Cartier, Tiffany’s, or another brand, do not close the deal unless you are offered over 80% of the melt value. Designer pieces are worth more, therefore, should not be sold for scrap gold prices.
Usually, the buyers argue that the cost of melting the item is to turn into a new one, hence, it is hard to get an amount over the melt value unless it is an intricate or antique piece.
Ensure that you are getting the best price by determining its worth beforehand.
Check the Gold Purity
The seller will be saving a lot of time by sorting out gold by purity. Gold metal is measured in karat therefore, use a magnifier to read the little labels on the gold referring to karat, for instance, 10K, 14K, 18K worth, and so on.
Karat refers to the percentage of pure gold in the jewelry piece, the higher the number, the pricier the gold will be.
For instance, 24-karat gold is more expensive than 22K or 18K gold jewelry. After determining the gold karat, separate the jewelry item and place them in separate containers.
Remove artificial items from the jewelry collection, do this by testing the items using a strong magnet. Solid or pure gold will unlikely stick to the magnet.
Weight of the Gold
Since gold price is often listed per gram, therefore, it is measured in grams. Some buyers use a different system like a pennyweight or a troy ounce to measure gold. Inquire before selling the measurement they are using to get paid by the right unit.
Gold buyers often trick sellers by measuring the gold by the pennyweight and paying the price per gram.
Calculating the Selling Price
Read the newspaper or check credible online websites to know the current market rates of gold.
The gold item will be sold according to the price of the gold on that day.
A simple way to calculate the price of gold is to multiply the current market value with the percentage of pure gold.
Bear in mind that the 24K gold is 100% pure, 10K gold has 41.7% gold content, and 14K gold is 58.5% pure.
Calculate the value by multiplying the price per gram by the percentage of the gold content.
Suppose, if you are selling a 14K gold item and the price per gram is $57.44, multiply the said per gram price by the purity percentage (58.5%).
The resulting amount would be $33.6 per gram and if the gold item weighs 6.8 grams (33.6×6.8) the amount would total to $228.48.
The buyer will likely pay you 50%-80% of the $228.48, you will be expected to get $114.24-$182.8.
The value of the precious and semi-precious stones in the jewelry will be calculated separately. Calculate the value of the gold before going to the buyer to not get tricked.
Get Quotes From Multiple Buyers
Inform buyers about the karats, the weight of the items, and the incorporation of any stones to get an estimated amount.
Most credible buyers are willing to give a phone quote in accordance with the adequate description you provided.
However, shady dealers often hide prices and do not give the total payout amount. Check the buyers on Yelp, Google, and BBB to know about their credibility.
Sell the Jewelry Item
After you have chosen a buyer, they will likely ask to evaluate the piece in person. After evaluation, wait for the buyer to make the offer, and close the deal if you are happy with the offer.
A reputable gold buyer will ask for a signature, ID Card, and potentially a thumbprint to close the deal. Anyone who does not ask for proof of identity will likely be operating illegally.
Tips to Consider When Selling Gold Jewelry
- Gold Appraisal – Before selling, it is important to get a gold appraisal to determine the true worth of the gold based on the quality, karats, and rarity of the item.
- Weight Measurement – Ask for the weight system the buyer uses, ensure that they do not measure the piece by the pennyweight, and pay the seller by the gram.
- Reputable Buyer – The only way to get a fair price is by selling it to a reputable and licensed gold buyer.
Conclusion
To sum up, it is advised to not sell gold without knowing much about the selling process. Get several appraisals to sell the piece at the best price and not scrap.