Selling gold for cash can help bring you some quick money, but here's a case where it's let the seller beware. Your old jewelry, gold trinkets, gold teeth, etc. sell by weight and purity. Let's take a look at what this means for you.
When you sell your gold, you want to be sure to get the most cash for your item(s). News shows have investigated dirty dealings in mail-in companies, fly-by-night gold buying stands and even at gold-buying parties. Places like Cash/Money Buyers will help you find a local gold buyer in your area and that alone can help you get the most cash for your gold.
1. Gather your gold
Start by grabbing all the gold items in your house that you want to sell. Put everything in a pile, including little tiny chains that are broken or small charms… things you think don't amount to much will in fact add to the weight of your pile and selling your gold instead of tossing it will get you cash.
Once everything is in a pile, you want to divide it up into small piles of quality. Because gold is a soft metal, it has to be mixed with other alloys in order to be stronger. Gold is measured by karats which determine how fine the gold is. For example if you look below, the karats are on the left and on the right is pureness of the gold:
24 karat = 999/1000 gold
22 karat = 916/1000 gold
18 karat = 750/1000 gold
14 karat = 585/1000 gold
10 karat = 417/1000 gold
In the United States, anything below 10 karat is not considered gold. Pure gold is considered to be 24 karats. Unless you have a acid tester to measure your gold, you're going to have to rely on the markings. Divide up your gold into karats, put them in a bag and mark the bag.
2. Approximate your gold value
Gold is weighed in Troy ounces which is roughly 31.1 grams or 28 grams in the US. So the amount per gram of gold you sell is dependent on the day's value of gold and how much profit the buyer is making. Of course the buyer has to make a profit, why else do business? But we want to make sure that you are getting the most for your gold and the profit margin is skewed to the buyer.
See what the going rate for gold is that day by using a site like Gold Price or Kitco. The formula you would use to get an idea of your gold value is: Spot price divided by 28 = $/g pure; x fineness % = price/g x number of grams = full value of your items before selling costs x 75% for the minimum offer you should accept for gold.
Or use an easy calculator like the one here at Silver Recyclers.
3. Find a local reputable dealer
Don't be lured by online sites that promise to pay the most gold. By going to a local vendor you will be able to see the process of them weighing and checking the quality of gold right in front of your eyes. Using a site like Cash/Money Buyers will help you find a local dealer or go to your local jeweler. If you are not sure of the business you can look them up at Better Business Bureau website.
4. Separate the scrap
Before you sell your gold, make sure you decide which items are best to be sold as scrap and which items are worth more to collectors. Gold coins should never be sold as scrap, a collector would gladly pay dearly for those items. We will discuss that more in a future article.
Jewelry is usually sold for scrap unless you have a one-of-a-kind piece made by a famous designer or there is history to the item that make it worth more.
5. Bring your I.D.
When you go to sell your gold or silver, make sure you bring proper I.D. Buyers are required by law to ask for I.D. If your dealer did not ask, they are mostly likely not be reputable.
Your dealer should weigh and check for the fineness (karat) of your pieces in front of you. Before you get that far, you may want to call and inquire about their gold prices. If they take 25% or less as profit for themselves, then you found a decent buyer and stick with them. If they take more, find a different buyer.
Have fun cleaning out your drawers and getting a few dollars in your pocket. It's better than sitting there or ending up in the trash.
Until next Tip!
- Brian
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