Finance

Things You Should Know When You Sell Gold for Cash

These days, it seems like the only businesses that are thriving are cash for gold companies. Whilst other retail establishments are closed or see very little business, cash for gold companies are doing rather well. They do not even have to be physical set up in a particular place, most of them have moved online making it very easy for sellers to find them.

If you have some old, unused jewellery that’s been lying around. This is the right time to sell. But before you do that, you need to understand that some buyers will offer you more for your gold. The global price for gold or spot price is published on a daily basis, gold buyers will only pay you a fraction of that price. When you know how the gold buy-back industry works, the better your chances are to see the difference between a good and a bad deal. 

Selling gold as scrap?

First things first, determine what type of gold buyer you want to sell to. While it is true that gold jewellery is mostly valued for the amount of gold making up the jewellery, but jewellery from high-end jewellers like Cartier, Tiffany & Co or other notable jewellery designers that are known for creating signature collectible pieces, especially if the piece is old are valued differently.

If you are not sure if your gold item has a special cachet, it won’t hurt to have if appraised by a jeweller who deals in vintage jewellery. The same can be said for gold coins: that lucky gold coin that has been passed from generation to generation might be worth a mint – a numismatic coin dealer or collector will be able to tell you its true value. 

Getting an expert to appraise your gold jewellery can also help in terms of insurance. You are using an online cash for gold dealer who requires you to mail the jewellery, if your jewellery should get lost, the appraisal serves as proof of what the jewellery is worth.

Know Your buyer

You can save yourself a lot of aggravation by taking some time research the buyers you are considering. If you plan to sell your jewellery by physically taking it to a buyer, make sure they have a licence relevant to purchasing gold. A business without licenses may mean the buyer engages in deceptive practices. It does not inspire trust or confidence.  Google the business for customer reviews or search for other review sites.

Know Your gold

The next important step is for you to figure out the amount of gold in your jewellery. Weighing your gold items on a simple kitchen scale will work. Remember though that the unit of measurement for gold is known as a troy ounce which is equivalent to 31.1 grams an ounce. This means a troy ounce is heavier than a standard ounce.

The weight you get from weighing your item does not exactly reflect the real amount of gold. Most gold jewellery is made with other metal alloys. This is because pure gold on its own is too soft and gets easily damaged. Metal alloys added to gold make it more durable.  

Gold is rated by karats. Pure gold with no other metals mixed in is 24-karats. Gold jewellery is usually made of 9, 12, 14 and 18 karat gold. For example, a 12-karat gold item contains 50% pure gold. So, if you have 14 karat gold ring it contains 58% gold. If for instance, you have an 14 karat gold ring weighing 5 grams that means you have 2.92 grams of pure gold (5 x 14÷24) in the piece itself and the cash you can get is based on 2.92 grams.

You don’t have to scratch your head that much to figure out what karat your piece of jewellery is made of. Most gold jewellery comes with the karat engraved. If you can’t find this engraving, you can take your gold to have it appraised by an expert. They would use test like the acid test or an XRF machine. You can also buy your own acid test kits online. These tests cost between $20 and $50.

Know the Spot price

When you are done figuring out the amount of gold in your jewellery, you should look up the spot price online. The price you get is not what a gold buyer would offer you. Gold buyers need to factor in their profit margins and expenses. Competitive gold buyers will offer 70% to 80% of gold’s market value for gold jewellery. Try to get as many quotations, don’t settle for the first offer that sounds reasonable. You can pit buyers against each other and see who offers the most. 

The Bottom Line is that there are a lot of cash for gold buyers eager to buy your gold (in any condition) but they don’t all use the same formula to come to a price for your gold jewellery. You’ll get a better deal if you approach a buyer as someone who understands the business of buying scrap gold, the spot price and the competitiveness of the industry. Knowledge puts you in a better position to negotiate a good price for your gold jewellery.   

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