Even though gold prices appear to be dropping at present, the rate still remains above $1,800 per ounce. If you’re cash-strapped and you have gold items like jewelry to sell, it might sound like an attractive option. Whether you’re considering taking them to a jeweler, pawn shop, mail-in gold buyer, or even a gold party, it’s essential to understand what you’re getting into first. Here’s some advice to keep you from getting a bad deal when selling your gold:
1. UNDERSTAND THE GOLD SELLING PROCESS
Remember, even though market gold prices exceed $1,800 per ounce, you won’t receive the full amount. Potential buyers aim to make a profit and will likely offer you roughly 60% to 70% of the gold’s market price. Pay attention to the karat weight of your gold; 10 and 14-karat gold contain less pure gold than 18 and 22-karat. Only 24-karat gold is pure. To prevent being underpaid based on lowest karat weight, insist that each karat weight is weighed separately.
2. COMPARE DIFFERENT OFFERS
Take your gold to several independent appraisers for different opinions to ensure you get the most accurate estimate. Avoid accepting the first offer at a gold party. Instead, visit individual pawn shops, jewelry stores, and appraisers. Remember, unique pieces might get you more due to their appearance.
3. SEGREGATE YOUR GEMS
If your gold jewelry features gemstones, particularly diamonds, ensure they’re not undervalued. Get separate valuations for these gems and sell them separately to get their true worth. Diamonds, sapphires, rubies, and emeralds can yield significant value.
4. BE CAUTIOUS ABOUT MAIL-IN GOLD SERVICES
Some mail-in gold services could prove questionable, and might not offer fair prices. Always check terms and conditions, particularly those pertaining to returning your gold if you’re unhappy with the payment. Beware, you may find your gold has been melted down merely two weeks after sending without any chance of recourse.
