With the price of gold at all-time highs and a sluggish national economy, many people are selling their gold jewelry and other gold items as a way to supplement their regular income. However, if you have decided to sell your gold, there is some important information that you need to know about in order to prevent fraud and to ensure that you get the best deal. Here are six helpful tips on how to sell your gold for cash.
Know Who You Are Selling To
With more and more people selling their gold, a large number of cash for gold shops and websites have popped up. This increase in the number of gold buyers will likely result in an increase in fraud and an increase in inexperienced gold buyers.
As a result of this increase in gold buyers, you should thoroughly investigate any gold buyer that you are considering doing business with. Your first stop should be the Better Business Bureau (BBB). The BBB keeps records of complaints leveled against companies that are registered with the Bureau. Stay away from gold buyers that have a large number of complaints or that have numerous complaints that are unresolved.
If you are selling to an online or through-the-mail gold buyer, you need to make sure that all of the sale details are laid out in advance of you sending in your gold. You do not want to lose out on money because all of the details were not ironed out. It is also wise to insure any gold that you ship so that you will be reimbursed if it is lost in the mail. Ask to see a copy of the buyer's return policy to find out how much time you have to reject the buyer's offer. And take pictures of the gold items before you mail them out.
You also need to make sure that your gold buyer has a significant amount of experience in the gold buying business. After all, if your buyer does not fully understand the gold market or how to properly value your gold, you will not receive a fair amount of cash for your gold. Beware of doing business with people whose primary occupation is not the gold buying business.
Know The Important Features
The amount of cash that you get for your gold will depend on two features. The first is the weight of your gold. Generally, gold is measured in Troy ounces. A Troy ounce is approximately 31 grams. Make sure that your gold buyer correctly measures the weight of your gold. Beware of illegitimate scales and sneaky weighing techniques.
The second feature is the amount of karats in your gold. Because pure gold is much too soft to be used for jewelry and other gold products, it is typically combined with other metals that add strength. A karat measures the amount of pure gold in a gold item. A larger number of karats in your gold translates into a higher value.
Make sure that you do not allow your gold buyer to weigh gold with different karat values together. Some sneaky buyers will try to pay you based on the lowest karat amount.
Know What You Are Selling
Many people believe that a gold necklace is worth the same amount as its weight in gold coins. This is a mistake. Certain brand name jewelry items will be more valuable than other pieces of gold of the same weight and karat. The same is true of certain rare gold coins. It is important to recognize when your gold item might have more value that the amount of pure gold in it. Since you will generally receive less for items that will be melted down, make sure to find out if your item is worth more intact.
Know The Current Price Of Gold
Do not sell your gold without first finding out what the current market price for gold is. Take a quick look at the business section of the daily newspaper to get the market price. You can also check out goldprice.org for the current price and other helpful information about the gold market. Keep in mind that the market price of gold refers to the price of an ounce of pure gold. Since your gold will almost certainly not be pure, do not expect to receive the market price for your gold. Instead, you can use the market price as a rough benchmark to ensure that you are not getting ripped off.
You should never sell your gold to the first or second gold buyer that you encounter. Instead, shop your gold around to ensure that you receive the best possible price. Be aware that some gold buyers will try to give you less money than your gold is worth. Shopping around will allow you to get a better sense of the true value of your gold. It also might give you some leverage to negotiate with your prospective buyer.
Consider Holding Off
Even though you might be in a tight financial pinch, you might want to reconsider selling your gold. Some experts believe that the price of gold will continue to increase. If this materializes, you will be able to sell your gold for more in the future.
Selling your gold can be a quick way to earn some extra cash. However, you need to be careful who you sell to. Doing your homework ahead of time will ensure that you get the best deal for your gold.