Are you are looking to sell your gold ring? Are you trying to figure out how much you could get for your gold chain? If you are, here we have put together some tips that will help you get the most value for your gold. Let’s see how you can value your gold jewelry, to whom you can sell it, and what you should be careful about when doing so.
Find Out the Karats of Your Gold Jewelry
Karat is a measure of gold purity, and a karat number shows how many parts pure gold there are per 24 parts gold alloy.
For example, a 10K gold alloy contains 10 parts gold and 14 parts other metals, so this alloy therefore contains 41.7% pure gold (10 divided by 24).
The karats of the gold you are going to sell are important because your jewelry will be valued based on them.
They are usually stamped on the inside of each gold item. Sometimes, karats are also expressed and marked as a percentage or parts per thousand.
If you don’t know a piece’s karats, you could have it tested for purity at a jewelry store, or you could do the test yourself at home using a gold testing kit.
Check Current Gold Prices
If you know what percentage of your gold jewelry’s weight is pure gold, then you can estimate its value.
Check the current market rates per ounce or gram of gold, and multiply them by the weight of the pure gold you have. (For example, if a piece weighs 400 grams and is 18 karats, which is equal to 75% purity, then you have 300 grams of pure gold.)
If you go to a gold dealer, you should expect to sell your gold for about 60%-80% of the market price that you see quoted on gold exchanges.
In general, buyers that purchase gold in bulk pay better prices (e.g., gold refineries), but you might not have enough gold jewelry to meet their minimum threshold.
Evaluate the Gold and Stones Separately
If your gold jewelry has stones set in it, find out how much they are worth if sold individually.
There are gold buyers that will purchase your jewelry with its diamonds or other gemstones, but you should be aware of their value so that you know if you are getting a good deal.
Ask several gemstone dealers how much money they would give you for your stones only, and then ask gold dealers to give you a price only for the gold in your jewelry. It might turn out that you would be better off selling your stones and gold separately.
Offer Antique Jewelry at an Auction or to Jewelers
Vintage jewelry or pieces made by famous designers may sell for more than a gold dealer would pay for them.
If you have such items, first try auctioning them, and sell them if there are bidders that offer you more than the jewelry’s scrap gold value.
Some jewelers may also be willing to pay more for unique jewelry, so go to several stores and ask how much they would pay for your items.
Sell to Gold Dealers If You Need Quick Cash
If you need money quickly, sell your jewelry to gold dealers. However, you should first collect a number of offers and compare them to make sure you don’t sell for a price that is too low.
Use the rule of thumb mentioned earlier in this article: You should expect to get about 80% of the current market value of gold.
Ask the Buyer How Your Pieces Are Valued
Whomever you sell to, ask the buyer how your gold is valued. You should be shown the exact calculations, including the karats of your gold jewelry, the weight of the pure gold in it, and the price per ounce or gram.
Compare this rate with current market prices and with your own calculations.
You should also know how the karats of your jewelry have been determined. Did the dealer go by its hallmarks, or was the jewelry tested by the buyer?
If you are not sure what the karats of your jewelry are, first go to an independent jeweler and have it tested for a fee.
Get an Appraisal Only If Selling Complete Pieces of Jewelry
Appraisals are documents that contain a market price for your jewelry estimated by an expert. They are most useful if you intend to sell your items as complete pieces of jewelry, e.g. at an auction.
Appraisals are of little use if you are trying to sell your jewelry to a gold dealer.
Dealers don’t care about the theoretical value of the piece derived from its design, brand, or age. They buy jewelry for scrap gold and pay a predetermined price per unit of weight, so an appraisal won’t help you to argue for a better deal.
Trade-In Deals with Jewelers Can Provide Better Value
Some jewelers may offer you to exchange your gold jewelry for store credit that you could use towards purchases at the store. If you are willing to buy new jewelry, trading in your old pieces might result in better value to you than a cash deal.
So, give this option some thought before you decide what kind of deal you want to pursue.
Check the Reputation of Potential Buyers
Finally, don’t forget to vet the reputation of any potential buyer you are seriously considering. This is especially important for online dealers that ask you to mail your gold to them.
The website of the Better Business Bureau can be helpful in this regard, as you can check online if there are any complaints against a particular gold buyer.