Do you have gold in a forgotten jewelry box that is really just taking up space?
You’ve probably seen the offers to buy gold from various dealers and gold shops and maybe even thought about selling your gold to make some quick cash.
Do you wonder what the best tips for selling gold are?
To get the most for your gold, there are a few things you should know before you decide to accept or steer clear of an offer.
Don’t Miss These 7 Powerful Tips for Selling Gold
1. Be Aware of Causes of Gold Price Fluctuations
Supply and demand influence the price of gold. High demand and lower quantities mean a higher return for the seller. Remember, there is only so much gold in the world, so as time marches on, gold production levels will continue to decline. Market conditions can also influence gold prices.
As an example, during the recession in 2011, gold prices went all the way up to $1,917.90 and set a record high. At that time, it was a seller’s market for gold. Also related to gold price fluctuation, currency depreciation can cause the price of gold to soar. As the value of the U.S .dollar drops, the price of gold rises, which is beneficial to investors and not quite so great for sellers. An investor or a buyer will know that they can offer less and get more for their money.
2. Take the Time to Shop Around for Quotes
To understand what you can expect to receive for your gold, check to see what the LBMA has to say about the value of gold. The London Bullion Market Association, or LBMA, sets the gold standard for the gold market. Prices are set twice per day.
The IBA (ICE Benchmark Institution), a third-party committee, created the process to set the gold benchmark and works with the LBMA to distribute the price of gold in real time to investors around the world. To know the value of your gold, you will want to check on global pricing before setting out to sell your wares.
Once you have the information, shop around to different buyers to see who will give you a fair offer for what you are selling. It’s also a good idea to research the reputation of your potential buyer on places like Yelp or the Better Business Bureau to avoid possible scams or other negative experiences.
3. Know What You Have to Sell
Another one of the best tips for selling gold is to know what you have so you’d be able to determine a fair offer from the individual or business trying to buy it from you.
You can try a strong magnet on your gold pieces. If it is magnetic, your gold is either imitation gold or is gold of lower quality. Gold jewelry is made in 10k, 14k, 18k, and 24k gold, among other grades of purity. A higher number means purer gold, and lower numbers indicate a higher content of additional metals like copper, zinc, or nickel. Keep in mind that you will only ever be paid for the parts that are pure gold.
You may also want to consider getting an appraisal for antiques or heirloom pieces because they may be worth more at appraisal value compared to weighted value. At the same time, understand that sentimental value does not increase the actual value, so it is best to have a professional recommend selling by weight or by appraisal.
4. Know What Counts in Karat Weight
Investors will know the differences in troy ounces, grams, and how karats relate to both. It would be a good idea to educate yourself on these conversion rates, too. A troy ounce is equal to 31.1 grams in weight.
We already know that different karat ratings stamped on gold indicate different levels of purity, but how does that translate into karats and grams? 24k is considered pure gold, so a single karat is equal to 1/24 part of a piece of gold. 18k is 18/24 parts gold, 12k is 12/24 parts gold, etc.
When a dealer or buyer gives you an offer, they weigh the piece to find its total weight. At that point, you multiply the weight in grams by the purity. As an example, 12k is 50% gold, so you would multiply a piece that weighs 8 grams by 50% which would give you 4 grams of pure gold. To convert the grams to troy ounces, you take the pure grams and divide that number by 31.1 to get the troy ounce equivalent. In other words, those 4 grams of pure gold divided by 31.1 will equal 0.13 troy ounces of gold.
5. Separate and Organize Gold
Once you ascertain the different purities stamped on your gold, you will want to separate it by karat. Doing so is especially useful in calculating grams of pure gold as well as troy ounces. Also, separate out anything with gemstones as this will influence the total weight and cause a different type of calculation depending on the type and size of the gem. Don’t forget to pull out any pieces that are also stamped with a GP or GF as gold-plated and gold-filled jewelry is not worth much from an investor’s perspective.
Organizing your items beforehand is another one of the most important tips for selling gold because you will be able to ensure better prices for yourself and avoid manipulative tactics that pawnshops or dealers sometimes employ.
6. Impulse Equals Less Cash in Your Pocket
Once you choose to seek out a gold dealer or buyer, do so after being educated and informed on what to expect. Don’t sell your gold just because you want to put some extra cash in your pocket. If you do sell on impulse, you will likely end up with a lesser deal than you would have had if you had done your research to get the best deal available. Your chosen dealer should be able to tell you what your gold offer is per ounce or per gram so you can compare with the industry price. If the answer they give you is fuzzy or vague, steer clear of that buyer and take your gold elsewhere.
7. Document Everything and Read Buyer Policies
When researching to see where you will get the best offer for your gold, you will come across a variety of companies both locally and online.
To cover yourself and your gold, be sure to document everything once your choice has been made. Take pictures of the gold if you have to ship it or if you have to leave it overnight somewhere. If you ship your gold, be sure you send it with a return receipt and a tracking number. Check policies for lost pieces in the unfortunate event that you find your package has been lost in the mail or lost at a shop. Will they cover the cost? Do they offer insurance? Finding the answers to these questions will help you make your decision in addition to avoiding any undue stress during the process.
Above All, Do Your Research
The bottom line is that you need to do your research and go in with current information about price, weight, and purity. Study the gold fluctuations, get multiple quotes, and make an informed decision once you have all the information you require.
Being aware of the industry standards will clear the way for your expectations to be realistic as well as making sure you recognize an unfair offer versus a fair offer. When you’re ready, you can go forth and sell your gold with confidence, knowing that you are well-informed and can otherwise spot someone trying to take advantage of you.