Turn on your television and you’re bound to see an advert that promises to turn your unwanted gold jewelry into cash. Is it too good to be true? Is it really worth the risk?
If you have read the first part of this blog, then you already know a few things about selling gold. If not, then it would be wise to go to the first part and read the very beginning of our interesting discussion on selling your gold coin and jewelry. For those who already know why it is important to (1) check local pawnbrokers and (2) avoid rogue buyers, we can happily continue to points three to seven.
Point #3: Do Not Mix Karats
There are so-called “gold parties” that are seemingly Tupperware-like, such as those organized by Premier Gold Parties. The way it works is that a group of neighbors or friends agree to socialize but the main purpose is to sell all their gold in a private, home setting.
Tucson’s Better Business Bureau has stated that these gold parties are not exactly the best way to get the most value out of your gold. This method is definitely fun and allows you to interact with a lot of buyers and sellers, but it is not as profitable as you may think. Gold parties are best for people who want to dispose their gold and silver while having a good time. Why? There are just too many people in the pot who will benefit from the said party, and that includes the organizer and host who have cuts on the price of your item.
Normally, at some gold parties, the pieces of jewelry are all weighed together, and then paid according to the lowest karat value. Such terms is not appropriate if you are wanted to get the most value out of your items. To ensure that you are paid more for high-karat pieces, separate your jewelry based on its individual karat.
Point #4: Keep Your Eyes on that Scale!
The US Department of Weights and Measures is responsible for verifying the scale used by jewelers and pawn broker, this is to ensure uniformity and equity among buyers and sellers. When you flock into rogue buyers that offer cash in exchange of gold, the scale they used is not tested and certified. A difference in few grams could rob you with several hundreds of dollars because they do not comply with government regulations on buying and selling gold.
It is important to consider that gold is valued per troy ounce which is equivalent to 31.1 grams, while others make use of pennyweight. Take note that US scale which is usually a food or postal scale measures 28 grams per ounce. A troy ounce of gold is equivalent to 20 pennyweight, thus, a pennyweight is equivalent to 1.555 grams. Be wary of buyers who measures and weight your gold by grams and not by pennyweight or troy ounce. This is their way of paying you less for the real value of you piece.
Point #5: Always, Always Read the Fine Print
As it has always been, the most important information is always included in the fine print. Therefore, it is essential to read and compare pawnbrokers’ terms and conditions even when working with a legitimate buyer. Overlooking the small prints may result to costly mistake. There are some that websites offer free shipping to send in gold, but would charge absurdly high shipping rates once the seller declines the offer and requests for return instead. You might want to check the buyer’s policy as well, because you could lose your gold on reimbursement. Many of these eager buyers offer only limited liability.
Point #5: Check Buyer Credentials
Before selling gold, always ask any possible buyer to provide you with his or her credentials. If the company (or person) is legitimate, it should be certified by the state to purchase gold. The company is also legally required to request for a government-issued identification, such as a driver’s license or passport. This kind of requirement is enforced to prevent any form of money laundering and selling of stolen property. In the event the buyer doesn’t want to ask for your ID, it should be a sign to find another buyer.
Point #6: There are Other Ways to Sell Your Gold
Here are other ways of selling gold, although they have their own pros and cons. Refining companies, for example, can get you close to the full market value of your gold from refiners because they provide accurate quote. Still, you have to do your due diligence in researching about the refining company and make sure that your gold is insured before mailing them. The only drawback with refining company is that they prefer to purchase only in bulk. So if you are just looking to sell a few, small pieces, this is probably not the best option to consider.
The main idea in selling gold is that, before you decide to give up your gold, you have to take into consideration the main reason why you are selling it. Also, make sure that you are not in possession of something that has antique value. Do not get into the hype, you will be lured to the cash for gold business but you have to be very careful and take certain precaution before letting go of your precious item. Do not go to a rogue buyer, know the weight of your gold, and check today’s prices. Most importantly, take your time and do your research.
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