Selling your old gold jewelry can be a great way to clean out your closet and earn some extra cash. If you have decided to sell your scrap gold, there are some things you need to know and some things to look out for to make sure you get the best deal.
Step 1 – Get it Appraised
The first thing you need to do is get your jewelry appraised. The less gold content there is in a piece of jewelry, the less money it will be worth to someone who is going to melt it down. When you buy jewelry from a jewelry store you are paying for both the design of the jewelry and the metal it is made up of. Therefore, your beautiful old piece of jewelry might be worth more as resale to a jeweler than it would have as recycled gold. If you think this might be the case, you should definitely get the piece appraised.
Step 2 – Check the Price of Gold
Check a website such as http://goldprice.org/ to learn what the current price of gold is. Remember that the price of gold fluctuates constantly, so what you see is not necessarily what you will be paid. Also keep in mind that the price usually refers to 24 karat gold and most jewelry is not that pure.
Step 3 – Figure out How Much it Weighs
This is where it gets a little technical, so bear with us. If you have a jeweler’s scale it will be a lot easier because all you need to do is weigh your gold. But if you are using a conventional kitchen scale you will need to convert to pennyweights. 1.5 grams = 1 pennyweight and 1 ounce = 18.23 pennyweights. Remember that most gold buyers won’t pay full price for gold because if they did they wouldn’t make any profit from reselling it, so expect to take anywhere from 10 to 30 percent off of the value of your gold. That percentage is negotiable, so doing these calculations before you shop the gold around is certainly worthwhile.
Where you Can Sell your Jewelry
Option 1 – A Jewelry Store
If you are selling you jewelry for resale the best place for you is probably a jewelry store. However, if you have broken jewelry or jewelry that will probably never be worn again, a jewelry store will have no interest in resale and therefore won’t give you very much money for it. Most jewelry stores probably won’t even want to buy your scrap gold but if they do, their offer will be low so that they can make a profit when the sell the gold to a refinery.
Option 2 – A Pawn Shop
Just like jewelry stores, pawn shops are trying to make as much money as they can off of your jewelry. Sometimes they might make you a good offer, but generally this is the last place you want to go to sell your jewelry.
Option 3 – An Online Gold Buyer
Online gold buyers will send you a mailing packet so that you can send them your unwanted gold. They will evaluate your jewelry and make you an offer. There is no cost and no contract for this service so if you don’t want to accept their offer you are not obligated to do so and they will send your jewelry back to you. Like jewelry stores and pawn shops they have an overhead, so they won’t offer you as much as your gold is worth, but they will probably make you a good offer.
Option 4 – A Private Gold Buyer
Private gold buyers are similar to online gold buyers in that they specialize in buying gold and that they require no payment or contract for their services. However, private gold buyers can also offer private consultations and honesty that you may not find anywhere else. Additionally, if you find a reputable buyer, you may be able to sell for more than you could anywhere else.
The Bottom Line
When selling your gold jewelry, there are many answers to the question of “how” and none of them is always correct. The best thing you can do is to know how much your gold is worth and then shop it around. You will rarely get as much as the gold is worth, but doing your research will ensure you get the best deal possible.