How to Sell Gold
For a beginner, the exciting process of selling gold can be intimidating. But when we break the task down into three manageable steps, selling gold is actually quite easy for anyone who hopes to make a few extra dollars and is good at doing their homework first.
Learn and Evaluate, Ask Questions
Television ads often present “Too good to be true” offers to gold owners, promising easy switching of gold for cash. Don’t do it! Some of these companies will pay you 18 to 20% of your gold’s actual value—as opposed to 50-60% for reasonable merchants.
To avoid scams, there are important questions that must be answered about both your gold and the current market before you can be able to start selling gold.
What type of gold do I have?
Whether coins to bars, whether “hidden” (meaning that the marks designating the gold have been pounded out) or brand new shiny items, it will not be difficult to find out the exact value of your gold should be, once you discover the number of karats and the condition of your items.
What is my gold worth?
Gold is priced using three main factors:
2.Price of Gold
- Karats can be determined by finding the inscription somewhere on the piece that tells you the karat value of the piece. The higher the number of karats, the more gold is in that particular piece. Pure gold is 24 karats.
- Price of gold is set twice daily by the London Gold Fix. Use Google to find out current prices for gold.
- Gram weight of your piece is determined using a gram scale—(or an ounce scale, just multiply by 28.35 to concert to grams). While this seems tedious, it is extremely important to know exactly what you have before trying to sell your gold to a dealer or other party.Find the price of gold per troy ounce using Google or another online search engine. A troy ounce equals 31.1 grams, so divide gold price by 31.1 to get the gold price per gram.Purity can be found by dividing the karat amount of your gold by 24 and then multiplying by today’s gold price per gram.
For the calculation, you can use a gold value calculator, or you can do it yourself:
Finally, you can multiply the gold price per gram by the actual weight in grams. If you have 10 grams of 10k gold and you calculated the price at $13.09 per gram, then gold is worth 10 x $13.09= $130.9
Percentage of purity
Source: The World Gold Council
Though these three factors are most important, especially for high-purity pieces, there are other elements at hand, like condition or intrinsic value. Some antiques are intrinsically more valuable than their gold weight, but this is not always clear to a beginner. You may decide to take the gold to an appraiser. Depending on location, you may pay between 50 and 200 dollars an hour to hire an appraiser.
Decide on a Buyer
Once you have necessary papers and presentation cases that attest to the authenticity of your gold, you may decide on a buyer.
Many online or offline options are available:
(a) Local scrap gold buyers. Broken or old pieces of jewelry are often sold as scrap gold—look for local dealers and see what you can get for your pieces.
(b) Friends / Acquaintances. Search your network of clubs/associations and other groups to find friends or peers that might be interested in purchasing your item(s). This is a common and trustworthy way to do business.
(c) Local jewelers and pawnshops. Some local pawnshops are actually quite reasonable, especially for those who know what their piece is worth.
(d) Online Auction Websites. Create a profile on eBay, then upload photos and information about your item to start an auction.
(e) Online gold buyers. When using online gold buyers, be sure to read reviews first. These can be a great option for sellers, but research is certainly needed.
Whether online or offline, there are tips to keep in mind when selling gold.
Tips when selling and collecting cash
- Always ask what you will be given for one gram of gold, then compare prices before selling.
- Ask if you will be notified of the value before being paid for the item.
- Never drop your item into a mailbox—insure the package by asking the buyer to recommend a secure way to deliver and send wisely.