Cash For Gold: Know The Basics When Selling Your Jewelry

Many businesses have emerged in the recent years offering to buy worn-out or unwanted gold jewelry. Whether you are looking for extra cash or downsizing your collection of unused jewelry, you will want to take time to consider some basics before diving into the gold selling pool.

Know how your gold is valued

According the Federal Trade Commission, all gold sold in the U.S. must be described in terms of its karat. Pure gold is too soft to be used in its many applications so it is usually blended with other metals for durability. For this reason, the price you will be offered for your jewelry is based on its weight and scrap metal value. The higher the karat, the more valuable the piece.

Be aware that jewelers use a standard called the Troy ounce to measure gold which is 31.1 grams per Troy ounce. The U.S. measurement is 28 grams per ounce. Additionally, measurement styles can vary among gold dealers. For instance, some dealers may use a scale called pennyweights to measure the Troy ounce of your gold. At a 1.555 gram equivalent, you will want to ensure your dealer does not measure your gold in pennyweights and pay you based on grams.

Go with the right business/dealer

There are many venues that offer cash for old or unwanted jewelry, some will offer more money than others. For instance, it was found that mail-in dealers offered only about 11 to 29 percent of the meltdown value. Also, it's important to remember that cash-for-gold dealers are rarely interested in the workmanship of your pieces, while a jeweler may be interested in the piece itself and offer more. Dealers are aware that many consumers are only looking to make a quick buck and are often ill-informed. Arm yourself with knowledge by checking with a few jewelry stores before handing over your gold trinkets. 

It may go without saying that you should shop around for the best deal. Before selling, you should know the karat, weight, and value of your gold. If the dealer is putting on the pressure or carelessly assessing your jewelry, don't be afraid to go somewhere else. Take your time and weigh your options. After all, the time it takes to ensure you got the best deal won't hurt nearly as much as discovering you sold a $100 ring for 30 bucks. Talk with a place like Estate Buying Group - Harry H. Solomon Co, Inc. for more information.