If you have a cache of gold in any form, and you are feeling the pinch because your money doesn’t stretch as far as it used to, this may be a good time to sell gold for cash. The price of gold has always been a good hedge against inflation and economic instability, because the price is not dependent on a specific country’s financial health.
This is why gold prices go up when financial markets go down; people want to bet on a sure thing, so you can sell gold at top prices during these times. You don’t even have to go very far to sell gold for cash. Pawnshops are always available; in some areas, they are open 24 hours.
You can also search online to find a pawnshop or other gold buyer in your area. However, you still have to bring in your gold so they can check and appraise it, so this is one case where you cannot transact purely online.
Of course, if you have gold bullion instead of jewelry, you can sell it on eBay, but you have to pay a transaction fee of 9%., and you never really know if you are getting the best price. Remember, the market value of gold changes daily. Here are some things you need to know before selling gold jewelry for cash, or any other bits of gold you have in your stash.
The price of gold may be standard, but the selling price of any piece of jewelry will vary from place to place. It is important that you shop around before you decide on a buyer. Find reputable pawnshops or cash for gold establishments in your local area.
They will be happy to give you an estimate for what you have to sell, and you should not have to pay for it, either. Try to get at least four estimates. Once you establish a base price, you can then go online to find out how much online buyers are offering or bidding. In most cases, your local establishments will offer competitive prices and give cash, so you don’t have to wait, pay for hidden costs and fees, or worry about scams.
The person-to-person transaction is often the best, but it pays to cover all your bases.
A person may approach you at your hotel or even at home, and offer to buy any gold jewelry you may have on hand. These are transient buyers, also known as rogue buyers. They go into different towns, set up temporary shops such as in a hotel room, and run ads promising top prices for gold. In most cases, this is not true.
They often offer prices that are below market value, and fast-talk you into selling it to them. You may be tempted because it is convenient, or because it is human nature to be accommodating. In any case, it would be wiser to avoid these rogue buyers, just to be on the safe side.
The demand for gold is so high that some people have had to create new ways to find gold they can buy. One of these is the so-called “gold parties.” Similar to the erstwhile Tupperware party, the host brings together a group of people in someone’s home to make it a social event. This creates an opportunity for meeting new people and selling their gold in a convenient and friendly atmosphere.
This is fine if you value convenience over getting the best prices. The way it works is that the organizers all get a commission for holding the party, which means they each get a cut from the selling price.
This means the sellers gets less than they should. In some parties, all the gold jewelry are weighed together regardless of purity, and the selling price is based on the lowest karat value. That’s fine if your jewelry has a low karat value, but you take a big hit if your jewelry has higher karat value.
Watch the scale
Another problem with selling to individuals off the street or in gold parties is that the scales may not be accurate. Unlike pawnshops and jewelers where the scales are periodically checked, these fly-by-night operators undergo no such verification.
You therefore have no assurance that the scales are on the up-and-up. Furthermore, you have to be vigilant about how your gold is weighed. Gold is measured in troy ounces, which is approximately 31.1 grams.
If the buyer weighs your gold in grams, the price should be:
(daily market price ÷ 31.1) ÷karat (e.g.75% for 18 karat gold) x weight of your jewelry in grams
However, some buyers use a pennyweight, which is about 1.555 grams. In that case, you should be paid thus:
(daily market price ÷ 20) ÷karat (e.g.75% for 18 karat gold) x weight of your jewelry in pennyweight
If the buyer weighs your jewelry in pennyweight and then pays you by the gram, then you will get a lot less.
Find out more about your jewelry
If you have ever watched the show Pawn Stars, you may have seen how some jewelry is more valuable because of where they came from rather than how much gold they contain. If you are selling your grandmother’s jewelry, it may be in the style of a bygone era that is no longer being done. It could also have some history behind it.
This can make it infinitely more valuable than for merely its gold content. These are rare, of course, but if your jewelry is old, it may be worth your while to have it appraised by someone that specializes in antique jewelry.
Selling your gold jewelry is always going to be a breeze. Gold is always in high demand, more so when the economy is not in good shape. You can always get cash for gold. The trick is to get as much cash for gold as you should, and these tips can help get you there.