How to Sell your Gold!

When you are first trying to make some money by either selling gold you bought, or selling something made of gold that is possibly worth a lot of money, the first question you have to ask yourself is what kind of gold are you trying to sell?

Many different kinds of gold exist but the most common are grouped into two categories: scrap gold or gold bullion.  Gold bars, coins, and certificates are all gold bullion while dental gold, any jewelry made from gold, or really anything that needs to be smelted down is scrap gold. Most people’s gold possessions are in the form of scrap gold, gold jewelry to be exact.  

Scrap Gold

When you have old, used , or even broken jewelry, you may think that selling it for scrap gold is the best way to make some extra cash off of it, but honestly, that may not be the case.  When selling gold jewelry based on its worth in gold, it won’t account for craftsmanship or the beauty of the item. When selling gold jewelry, first take it to a jewelry shop that buys used items and see what it is worth vs. its weight in gold. You could also try selling it online on eBay or some website if it is worth more than its gold value.

Knowing the current price of gold is crucial.  Check the price of gold per ounce to have an idea of what it is worth so no pawnshop can rip you  off. You can check these current prices at Kitco.com or BullionVault.com.

You may know the current price of gold per ounce but when selling old jewelry or scrap gold, you may not know the weight and purity. Purity is important because it can drastically increase or decrease the price.  A jewelry shop can help you weight the pieces on a scale and test the purity with a substance called aqua regia.

The easiest, fastest, and most profitable way to sell gold jewelry is to separate it by purity, and for gold jewelry that is in karats.  So 18 karats here, etc. Then you can weigh them together and sell them all as a bundle to make the most profit and know the amount of gold for sale.  The lower the karats means the more metal alloy there is mixed with the gold so the value decreases.

But make sure, when selling gold for money, experts warn to be extremely cautious and basically in general  just completely avoid “Cash For Gold” buyers who set up small shops in temporary places such as a small strip mall or hotel room.  Very seldom will they give you the current and accurate price of gold per ounce.  Only deal with reputable buyers when trying to sell your gold.  When selling your scrap gold, search around and see what everyone is offering.  You may decide a local pawnshop is the easiest way for you if you only lose out on a few percent of the real value. But take it to 3-4 reputable pawn shop dealers and try to compare offers before you accept the first one. A rule of thumb is that you should try to get at least 75% of the market price for gold.  That may not seem like a greatttt deal to you but you have to remember, if you sell it to a pawnshop or reseller, they need to make a profit too. And it honestly may not even be worth your time to spend a large chunck of time getting 10-15% more.  That’s different for gold bullion which you normally can get just a slight bit underneath the actual price for considering it is high in demand and so valuable.

Gold Bullion

Gold bullion is a lot different from gold jewelry. First off, a small increase in the purity can mean THOUSANDS of dollars more.  That’s how important the purity or fineness is.  Gold Bullion can come in gold bars, coins, or other valuables.  When selling gold bullion, you most likely won’t sell it for a collector’s item unless it is a rare coin or something with substantial collectors value, if you have that, you have A LOT of money on your hands.

You will need to know the amount of gold for sale because that determines the price at which you sell.  If it is less than 24 karats, it has metal alloys mixed in with the gold which decreases the value.  When having a clerk at a pawn shop or store weigh your gold make sure they show you the weight so you are not tricked.  Selling gold bullion your best bet is to find a gold only business or gold dealer at a coin store, maybe a jewelry shop. Again, call around and see what each place will offer you for gram per gold so you get the best price.

If selling a gold coin, try to take it somewhere first to have it inspected to make sure it is not something that is worth more as a collector’s item.  Many items may have more value than you think, and have a professional examine any high priced gold item you have whether it be a bar or coin because if you are dealing with thousands of dollars, spending $30 to get it checked out may save you from getting scammed out of hundreds.