In today’s economy, stocks are out and gold is in and it’s never been a better time to cash in on your investment. With the price of gold still soaring high and the national economy stuttering and starting every few months, many people have turned to selling their gold as a way to supplement their income. However, if you do choose to sell your gold it’s vitally important that you read up on the risks and learn your stuff as thoroughly as possible to make sure that you get the best deal on your investment. To ensure you don’t get defrauded and head into negotiations with an informed opinion, here are some tips on how to sell your gold for cash:
Know Who You’re Selling To
Ever since the price of gold started to skyrocket there’s been a deluge of new traders springing up online and in the high street hoping to cash in on the phenomenon whilst the going’s good. Avoid these traders at all costs- they are typically run by inexperienced and insincere buyers and have a much higher rate of fraud than established gold traders. It is essential that your gold buyer has experience in the market; after all, if your buyer has little knowledge of the gold trade then it is unlikely that you’ll receive accurate reimbursement for your wares.
If you are dealing with one of these traders, make sure to do your research beforehand- check with the Better Business Bureau to see if the company has a reputation for dishonesty and/or a large list of complaints and unresolved disputes. If it is an online or mail-order business, read over the small-print and get all the details of the deal laid out to you in writing before sending your gold. Ask for a copy of the sellers’ return policy, take pictures of your items, and if you feel unsure about the deal consider getting your gold insured before you send it off.
If you are dealing with one of these traders, make sure to do your research beforehand- check with the Better Business Bureau to see if the company has a reputation for dishonesty and/or a large list of complaints and unresolved disputes. If it is an online or mail-order business, read over the small-print and get all the details of the deal laid out to you in writing before sending your gold. Ask for a copy of the sellers’ return policy, take pictures of your items, and if you feel unsure about the deal consider getting your gold insured before you send it off.
Remove Any Precious Stones
A seemingly obvious point but one that many gold sellers tend to forget is that unless you are selling your gold directly to a jeweller then any precious stones in the piece will add no further value to the object, and will not increase the offer you’re given. So make sure to remove any stones from your jewellery before you cash it in- they can either be recast into another piece of jewellery or sold on separately for an extra profit as you see fit.
Know What You’re Selling
It’s easy to assume that a pound of gold is worth a pound of gold, but there are a lot of variables on the market that can impact the price of your gold. For example, various name brand jewellery items (such as a designer ring or necklace) will be much more valuable than other pieces of gold that are the same size and weight, as can other items such as rare gold coins or historical memorabilia. It’s important to know what it is you’re selling specifically, so that you can evaluate it on its own terms rather than reducing it down to its basest properties. Don’t melt down any item that could fetch twice the price in a jewellers’ store over a refinery.
Know Your Karats
Pure gold cannot be sold in its unrefined form and must be mixed with other materials to create durability and colour. This is where the concept of karats comes from- a means to judge how much actual gold is in any given item. Trading Standards indicates that all gold for sale must state the karat of the gold sold- the most common measurements being 8, 14 and 24 karat gold, with 24 being the highest quality of gold and 8 the lowest. It is illegal to jewellery to be labelled as ‘gold jewellery’ if it is less than 10 karats (it’s typically marketed as ‘gold-plated’ or something similar in these cases). Make sure to get your gold looked at and the karats verified before you start selling so you can make an informed decision about the value of the product.
Let the Buyer Inspect the Goods
When people sell their gold to an experienced trader they often make the mistake of prioritizing their own goods, typically showcasing their biggest and flashiest pieces in the assumption that they will net them the most money. In reality though this isn’t how the process works at all, and understanding how things work can net you huge gains from items you deemed less impressive whilst allowing you to keep hold of any cherished pieces. When meeting a buyer, simply gather up all of the items you’re willing to sell, regardless of the quality, and let the assessor make the decision making. A true professional can look at objects with an unbiased and critical eye, and isn’t looking for aesthetics or sentimental value when inspecting gold, which means they can make a more objective decision when weighing up and evaluating your gold.
Shop Around
Remember, you should never sell your gold to the first buyer you come across. Instead, shop your gold around several interested parties and play the market to ensure that you find the best price. There are plenty of gold buyers that will try to undercut you to get a better deal for themselves, and shopping around will help give you a better sense of the true value of your gold. It can also help you gain some leverage when negotiating with a buyer if you’ve been quoted a better price elsewhere.
Bring Your ID
Gold buyers are required by law to ask for official identification in order to protect consumers, monitor stolen goods and prevent money laundering. All reputable gold buyers abide by these rules; if you don’t get asked for ID, consider it to be a major warning sign.
Don’t Gamble With Your Emotions
There is no replacement for sentiments when it comes to the business of gold buying, so make sure that you really are comfortable selling your jewellery before you give it away forever. Buyers don’t care about the backstory behind an item or that it’s been in your family for generations; they’re just looking to buy your items and then melt them down. Keep this in mind when you’re deciding on which items to sell and remove any items that you may have a lingering emotional attachment to- if you feel like deep down you’d rather keep hold of the jewellery instead of the money then it’s probably best to keep it that way.
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Lois Jewellery Ltd has over 26 years experience as a jewellery wholesaler and precious metal buyer located in the Jewellery Quarter in Birmingham. Established in 1985 our family run business has been one of the top traders in the industry.
Lois Jewellery Ltd has over 26 years experience as a jewellery wholesaler and precious metal buyer located in the Jewellery Quarter in Birmingham. Established in 1985 our family run business has been one of the top traders in the industry.