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How To Sell Your Gold Jewelry
Posted By Jim On 10/01/2008 @ 12:38 pm In Shopping | 4 Comments
If you’ve considered selling some of your unused gold jewelry for some cash at $900+ an ounce, you might be in for a very rude awakening. Selling gold jewelry is pretty easy, even if you spend the extra time to avoid the scam artists and rip-offs, but the reality is that whatever you sell will be melted down and the gold will be reused. Since it will be melted and reused, you will only be paid for for the gold in the piece minus whatever markup and fees that the buyer has. $900 an ounce sounds pretty good, but you won’t get anything near that for typical pieces of jewelry.
Well, you basically are getting the spot price of gold minus a cut if you go the gold route. 24-karat gold is pure gold. You’ll get the full weight of the piece if it’s 24K gold. 18K is 75% gold, etc. Anything with 10-karats or more will have a stamp on it, anything less and you’re probably out of luck in terms of selling it as gold.
If the piece is especially ornate or shows craftsmanship, it may be worth more than its weight in gold. In those cases, you’ll want to get it appraised and try to sell it as a piece rather than as gold. It requires more time and more effort but you might get a lot more.
Here’s where it pays to shop around, just as if you were buying it in the first place. Think of it as comparison selling. You’ll likely get the least at pawn shops and probably the most at jewelry stores. Try to go with someone with a reputation, that way you know you won’t get cheated on the scale or something else. Reputation in the jewelry business is everything.
One thing about all those infomercials or magazine advertisements of companies asking you to ship them your gold pieces for cash, avoid these unless you can verify their reputation. Sending anything through the mail is risky, sending hundreds of dollars to a stranger is simply foolish. As you can expect in any industry dealing with high dollar items, there’s plenty of fraud so you always have to be on your feet.
There’s some lingo involved in selling gold and here’s a primer so it doesn’t fly by you in a rush. Precious metal jewelry is measured in either pennyweights (DWT) or in grams (GR). An ounce of gold is a troy ounce and there are 20 pennyweights or 31.1 grams per troy ounce. When you go to sell, the buyer will tell you the price in dollars per pennyweight (that’s their daily price) as well as the weight of the piece prior to the transaction. So, if you bring something in that weights 10 pennyweights and they’re paying $45 per pennyweight, then the 10.0 DWT piece at $45/DWT is a $450 sale. They may also have higher daily prices based on volume and avoid buyers who won’t tell you this beforehand.
That’s basically it!
Here are some useful resources if you’re considering selling gold jewelry:
(Photo: Pink Moose )
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 How to sell your old gold jewelry: http://articles.moneycentral.msn.com/SmartSpending/ConsumerActionGuide/HowToSellYourOldGoldJewelry.aspx
 Should I Sell Grandma’s Locket?: http://www.slate.com/id/2139518/
 Q&A What’s the best way to sell gold jewelry: http://blogs.consumerreports.org/money/2008/06/qa_selling_gold.html
 Pink Moose: http://www.flickr.com/photos/pinkmoose/2210545353/sizes/m/
Thank you for reading!