From our experience in the field, you can differentiate two types of people who sell gold – the ones that sell jewelry that they bought themselves for some reason and those who sell inheritance that they received. The first type usually has more anguish from the stature, and we are going to focus on this type of person. By the end of this article, we hope to guide you while selling gold and that you earn maximum cash for gold.
In the vacillating economy of today, stocks are out of favor and gold is in. The price of gold has been climbing up steadily in recent times. Selling gold can make a substantial difference in your pocket. While there are many avenues where you can sell gold, Gold Parties have become one of the hottest trends. In a Gold Party, a small group of people come together to sell their gold. One major attraction of such parties is the instant appraisal of the gold. Once done, you make a deal and receive instant cash for gold.
However, selling gold in Gold Parties is not the best option for you. Several factors come into play that can hamper your deal due to which you don’t make as much money while selling gold. Commissions and a certain profit-margin are reserved by the seller and the host of the party beforehand. Due to this, the offer you receive for your gold does not cater to your best interests.
Important to know while selling gold!
- In most cases, gold will be bought from you by the retail price for their raw materials alone.
- Therefore, there may be a great difference between the price you paid and the price you are offered. More on this topic later on in this article.
- You can maximize the price you are getting by selling the right product to the right place. Sell a Moroccan bracelet to a specialized store, gold to jewelers, etc.
- It is possible to try and sell to private customers, and the benefit will be higher there – this requires time, documents, and patience.
The greatest distress for private people trying to sell gold on their own is that they are amazed by the gap between the buying price and the selling price offered to them.
The huge gap is because in most cases, the price for the raw material of jewelry plays only a small part in the final price tag in which it is sold.
This gap is continuing to grow the more branded and expensive the place the jewelry was bought from.
Take for example any expensive gold ring that you purchased. At the day you bought the ring, among other things, the following were considered:
- Worker’s wage for producing the jewelry
- Different manufacturing costs of the business – worker`s wage, rent, insurance, electricity, etc.
- Marketing and publishing costs – ads, Models, photography, etc.
- Cost of raw materials – the cost of the gold.
- Profit above all expenses. The profit percentage and the selling cost may vary greatly even for similar raw materials.
But when you are approaching to sell gold, in the vast majority of cases only one parameter will be considered – the retail price of the gold + security gap that is called “waste”, which means that after refinement the obtained weight of gold is few percent lower than the original weight.
As stated, according to our experience this gap can even reach thousands of percent if the jewelry was bought “expensively”.
What can we still do to reduce the loss arising from these gaps:
- In case the appropriate time has passed, try to sell the product back to the company you bought it from.
- In case of a shelf product that is marketed by them and is still being sold, they might pay a little extra for the jewelry.
- In case of a beautiful, unique, branded, in good condition, etc. Jewelry.
- In case you have the time and patience, try to sell it on the right platforms online (Facebook, eBay, second-hand websites, etc.).
- To maximize the chance of making a sale, give a cheap price tag and a proof for the original price.
- Take many clear photos and provide complete and transparent information.
Economic advice for anyone selling gold
- In case you must sell the gold to people from the field – Our best advice is to physically go to a few places and suggest the jewelry (and not only by phone – what is said on the phone doesn’t correlate with what they will actually pay).In most cases, the price range in reasonable places will be similar since most of the time, most of this gold is being melted, but there might be a case that someone wants to keep the gold in its current state and therefore will pay for more than the raw material. This is an uncommon scenario since anyone buying jewelry knows that it might stay in stock for years, but it doesn’t hurt to try and in this way, you can also know that the offers you received are legitimate.
- Know approximately how much gold from every purity level (gold karat is mostly 14, 18, 21) you have.
- Ask to disassemble large and heavy stones, watch mechanism, etc. In case the buyer doesn’t disassemble them he/she is simply taking more waste (indeed he/she doesn`t pay for gold). Many times, the locks of a necklace are not made out of gold. You can check that in advance using a magnet – gold won’t be magnetized.
- In cases the jewelry has a relatively large central gold (let’s assume as a rule of thumb 0.30 carat and above) and this is jewelry not meant to be used, it is recommended to ask them to dissemble the gold and evaluate it completely without the inlay concealment. Otherwise, every merchant will assume the worst condition in order to protect himself. Additionally, in many cases gold jewelry is filthy and it might affect their appearance. Make sure the place is reliable and skillful.
- In case you have gold coins, it is worthwhile to invest half an hour for Google research to see if they have some collector`s value by any chance. This is very rare but it doesn’t hurt to try. Most traders buy them for melting either way but there are some exceptions. In case it is discovered to be unique, try to approach experts in Singapore or abroad (where the market is more significant…).
- Many times, it is better for you to keep the central gold or to inlay it in another piece of jewelry. Otherwise, if you will buy another jewelry in the future, you will pay more than what you got. Even if you don’t like the design of a certain piece of jewelry, gold is always gold, and you can still use it!
And a few more tips to keep in mind while selling gold… Scout locally Regardless of where you sell gold, ultimately, begin locally. Present your gold jewelry before a reputed local jeweler or pawnshop and get your gold appraised. By bringing its value ascertained, you will have a base price in mind before soliciting online or direct offers to buy your gold. Remember, you don’t have to feel guilty about going to pawnbrokers as they are in the business to provide estimates and do it for free. Try to go to three or four stores as a precaution. By the end of this, you will have a clear idea of how much your gold is worth.
Beware of cheating
Sellers must steer clear of ‘rogue buyers.’ They rush into your town, promise high prices, and set up shop in local hotels. They usurp all the gold jewelry in the city before disappearing and leaving customers underpaid and cheated. Before you sell to rogue buyers or anyone else, check with BBB or Better Business Bureau for their antecedents.
Keep track of “scales”
The weight of the gold is used as a measure, but jewelers often use other measures like ‘troy ounce.’ Some jewelers use a weight system named pennyweight (dwt) to measure troy ounce, while others may use grams. A pennyweight measures 1.555 grams. While selling gold, take care that the jeweler does not weigh by pennyweight and pay you by the gram.
Pure gold is very soft. So, it is combined with other metals for color and clarity. Therefore, jewelers measure the Karat value of the alloy. One karat measures 1/24 of pure gold in terms of weight. 14 Karats means that the jewelry is 14 parts gold and 10 parts other metals. Gold less than 10k is not technically-‘gold’. In such cases, it becomes essential for you to have basic knowledge of karats while selling gold so that you are not cheated of your money.
Separate the gold by karats
Avoid weighing of gold jewelry of different karats all together. Some dealers will cheat you by weighing all karats together and giving you the lowest karat rate.
Keep track of value
The global market determines gold prices. As a result, the exchange value of gold keeps on changing instantly. So while selling gold, you must keep track of its current value to avoid being cheated.
- Know your gold
If the gold item has additional value than raw metal value like a designer or historical significance, you will get much more compensation. So, you must ascertain whether your gold item has historic or designer value. Selling gold from luxury brands will also earn you a higher sum as compared to other gold.
Consider the fine print
If you are shipping your gold item, consider factors like insurance, time and mode of reimbursement, the period after which the gold will be melted, and how much time you have in which you can refuse the offer. Take pictures before you send the items and preserve all relevant paperwork to avoid being a victim of fraud.
These were some tips to guide you on how to sell gold jewelry like gold engagement rings, gold wedding bands, gold necklaces, or other gold jewelry. While initially, it may seem like a daunting task to find the best place to sell gold jewelry for cash, but the tips compiled in this article provide all you need to know while selling gold. Keep in mind the points that we have discussed, and you’ll be well on your way to selling gold securely.