Selling Gold 101: 4 Key Details to Consider When Selling Your Gold Jewelry
For investors who buy and trade precious metals, gold is a significant commodity. Many people, however, love gold simply for its sheer brilliance and elegance. Gold jewelry pieces are timeless, holding their value indefinitely. People who are looking for a way to get some extra cash may turn to selling their gold jewelry pieces as a way to receive much-needed funds. Since gold is a precious, rare metal, it is crucial to understand the basics before selling pieces to a jewelry buyer. Finding the best place to sell gold may increase the amount of cash you receive.
- The Weight Factor
Knowing the weight of gold jewelry before selling it is absolutely essential to ensure that you receive a fair price for your precious pieces. Gold is measured in karats. One karat is equal to 1/24 of pure gold. Since pure gold is too malleable to be used in gold jewelry pieces alone, it is usually combined with various metals, known as alloys, which will give the gold sustenance, color and durability. For example, a gold piece weighing 18 karats is roughly 75 percent pure gold and 25 percent alloys. According to the Federal Trade Commission, all gold jewelry sold in the United States must indicate the weight in karats. Many people who want to sell their gold, however, will have their pieces professionally weighed to help them determine how much their items are worth.
- And the Current Market Value Is…
The price of gold will change frequently depending on the current market value of the precious metal. The market value is set by a number of different variables including the mine production, economic growth, and industrial fabrication of gold at that time. The value of gold generally fluctuates little over time, and continues to be a great investment for people looking to reserve their money in a material that can be easily liquidated. People who are interested in selling their gold should research the current fair market value. This will help to ensure that they are getting a good deal for their gold.
- Know the Scales
It is important to understand that there are several ways to measure the weight of gold. Many jewelers will base gold’s weight on a Troy ounce scale. One Troy ounce is equal to 31.1 grams of gold, while one ounce on the U.S. scale is equal to 28 grams. Another system of weights, referred to as pennyweights can be used to calculate a Troy ounce. One pennyweight is equivalent to 1.555 grams. Be sure to inquire as to which system of weights the dealer is using when measuring the gold pieces. It can be easy for a dealer to switch scales in order to pay a client less than the fair value for their gold.
- Reputation is Key
The best way for a customer to know that they are getting a good deal for their precious gold is to go to a reputable gold buyer. Check to see if the buyer is a member of an established association, such as the Jewelers Security Alliance or Jewelers Board of Trade. Make sure that the dealer has a solid return policy. Be sure that you understand the company’s operations before cashing in gold jewelry pieces.
Looking to earn some additional cash to remodel your home or take your family on vacation? Cashing in your fine gold jewelry pieces may be the perfect way for you to clean out your jewelry drawer, and make some money in the process. Be sure that you brush up on your gold basics before you head out to sell your jewelry.