Even though gold prices seem to be dropping right now, they’re still sitting above $1,800 per ounce. If you’re strapped for cash and have gold jewelry to sell, it might seem like a good idea. But before you head to a jeweler, pawn shop, mail-in gold buyer, or even a gold party, there are some things you should know to avoid getting a bad deal. Here are some tips to help you out:
1. **Understand the Gold Selling Process**
Even though gold prices are over $1,800 per ounce, you won’t get that full amount. Buyers want to make a profit, so they’ll probably offer you about 60% to 70% of the market price. Check the karat weight of your gold, as 10 and 14-karat pieces have less pure gold than 18 and 22-karat ones. Only 24-karat gold is pure gold. To ensure you’re not underpaid, insist that each karat weight gets weighed separately.
2. **Compare Different Offers**
Take your gold to several independent appraisers to get different opinions and ensure you have an accurate estimate. Don’t just take the first offer you get at a gold party. Visit various pawn shops, jewelry stores, and appraisers. Unique pieces might fetch more because of their design and appearance.
3. **Separate Your Gems**
If your gold jewelry has gemstones, especially diamonds, make sure they’re not undervalued. Get separate valuations for these stones and sell them individually to get their true worth. Diamonds, sapphires, rubies, and emeralds can hold significant value on their own.
4. **Be Wary of Mail-In Gold Services**
Some mail-in gold services can be unreliable and might not offer fair prices. Always read the terms and conditions, particularly regarding the return of your gold if you’re not happy with their payment. Be cautious, as you might find your gold has been melted down just two weeks after sending it, leaving you with no options.