Learn about how gold is valuated before selling your old jewelry
The price of gold passed $1,000 per ounce in 2010. and even with some minor corrections in the market it’s never fallen back to pre-recession prices. This has inspired a whole lot of people to take their old, unwanted gold jewelry, coins, and scraps into gold buyers and receive some very welcome cash. If you are considering selling your gold jewelry and other items, make sure you’re well-informed about the process before you accept a buyer’s offer. Here’s what you need to know.
Total Weight
We all know that buyers pay for gold by weight. It might seem smart to weigh your gold at home before heading to the gold buyer’s store so that you know how much you have to sell. However, weighing gold at home won’t give you the correct total weight for your jewelry, because gold and other precious metals are measured in Troy ounces. There are 31.1 grams in a Troy ounce, but a common household scale only measures 28 grams per ounce. A jeweler or gold buyer may tell you the weight of your gold in grams or in pennyweights (equivalent to 1/20 of a Troy ounce). A reputable gold buyer will not shortchange you on the weight of your gold, but if you want to be absolutely sure you’re getting a correct weight the best option is to visit more than one buyer.
Gold Karat Weight
Jewelry is never made from 100 percent pure gold. When you sell jewelry, you will be paid for the weight of the gold, not for the total weight of the jewelry. 10 karat gold is 42 percent gold, 14 karat gold is 58 percent gold, and 18 karat gold is about 75 percent gold. Items with different karat weights should be weighed separately so that the correct price can be calculated.
Current Price of Gold
It’s definitely wise to know the current market price of gold before you head to the gold buyer. Identifying an upward or downward trend in gold prices is helpful too as it can improve your odds of selling at the right moment to get the best price. Remember that a gold buyer has to make a profit too, so they won’t give you the full market price for your gold. Instead, you’ll probably receive somewhere between 60 and 80 percent of the price.
Use a Local Shop
There are tons of gold buyers out there, including online buyers and companies that set up temporary shops while moving from community to community. However, your best bet when selling gold is to visit an established local business. This type of gold buyer will be invested in preserving their good name in the community so they will give you a reasonable price and treat you fairly.
