Guest Author: With the economy in its current state, gold prices are very high. In fact, over the last two years, gold prices rose above 70 percent. If you plan to sell your gold, now would be a great time. However, you should know some very important things before you try to make a fortune from your jewelry box. Knowing these factors and tips can mean the difference between getting a great deal and being very disappointed by your profit. You may even discover that it isn’t worth your time to sell your gold.
Gold Buyers Purchase Gold to Melt Down
What does this mean to you? The heavier your gold is, the more it is worth. Since cash for gold companies send gold to be melted, they will only pay for the gold’s weight. The gold buyer will melt down the gold, separate the gold from other contents and impurities, and reuse the pure gold for himself or sell it to another company. He may also just resell the gold to a company that melts down the gold and resells it.
Gold content, of course, is defined by karats. Any piece of jewelry that is 24 karat gold is purely gold, meaning there is no other substance in that piece of jewelry. Therefore, a necklace that is 14 karat gold will have other metal in it, as well. The other metals usually act as hardening agents. Gold buyers will usually only pay for gold content because other metals have no resale value.
The less gold content a piece of jewelry has, the less it will be worth to gold buyers, since they only buy gold. You may be saying, “I bought this necklace for $2,000; this gold buyer only wants to pay me $200 for it!” Unfortunately, that may be how much your necklace is worth in its weight of gold. You paid for the quality of that necklace; you paid for its beauty, manufacturing fees, dealer fees, insurance and other types of fees.
Additionally, that necklace may have precious metals in it that raised the initial price that you paid for, which leads me to my first tip:
Tip 1: Get Your Jewelry Appraised
You may discover that your jewelry has more resale value or estate value than it does in gold value. Therefore, it would not be worth your time to sell your jewelry to a gold buyer, even if it seems like you should get a good price for your jewelry.
However, if you want to get your jewelry appraised, you need to take it to an appraiser who adheres to a specific code of ethics. Ask the appraiser if he or his company is a part of the Jewelers of America or American Gem Society.
Tip 2: Sell Your Heaviest Gold
There is a good chance that your heavy gold jewelry will be the best candidate for a gold buyer who intends on melting the gold. Do you remember those old 70s heavy gold chains? There is a good chance that you can sell those for a lot of money.
Tip 3: Shop Around
Since the price of gold is constantly fluctuating, it is hard to determine exactly how much your gold is worth. Regardless, each gold buyer will give you a different price. It is important to know that the gold buyer will probably try to keep something for himself, usually 10-30 percent.
Tip 4: Don’t Sell To Pawnshops That Don’t Ask For Id
Pawnshops have to report their files to the local district attorney. If the pawnshop does not ask for identification, take your gold somewhere else; you’ll more than likely be ripped off.
Tip 5: Keep Gold Coins for Yourself
There is a good chance that your gold coins are worth more in bullion than they are in gold weight. Take your coins to an appraiser who is a member of the American Numismatic Association. These appraisers adhere to a code of ethics and must tell you if your coins are worth more in gold or in bullion.
WeBuyAllGoldAndSilver.com cares about giving you a good deal on your scrap silver and gold jewelry.