5 Things You Need to Know About Selling your Gold Jewelry
You may open your jewelry box every day without realizing how much your old necklaces, earrings, bracelets and rings are worth.
While the cost of gold continually fluctuates, this precious metal has always had a high value due to the stability over other economy bases and investments. Many have found an inverse relationship between gold and the U.S. dollar. When the dollar is strong, gold has a lower value; when the dollar is weak, the value of gold increases.
Additionally, gold is long-desired for jewelry, and also plays a significant role in manufacturing electronic and medical devices. The demand for gold is higher when there is less available, and that’s when you’ll most likely find the best price. The value has been increasing throughout 2016, starting the year at $1,078.40, and reaching $1,367.37 just six months later.
If you’re ready to make some money while also clearing out some clutter, there are a few things you need to know before you sell your gold jewelry:
1. Understand the basics
Before you sell your gold jewelry, do your homework. Learn about the type of scales different buyers use to weigh your gold. These scales may include:
- A U.S. scale, measuring gold at 28 grams per ounce
- A Troy scale, measuring gold at 31.1 grams per ounce
- A pennyweight system, which measures a Troy ounce or gram; one pennyweight equals 1.555 grams
There are buyers who will try to confuse clients by weighing in pennyweights and paying in grams; to get the best price, make sure the buyer is both weighing and paying in the same unit of measure. You can avoid unscrupulous dealers by looking for a reputable, experienced buyer, like Southwest Jewelry Buyers, a Better Business Bureau A+-rated business that has served Scottsdale and the surrounding areas since 2000.
It’s also a good idea to understand the karat structure used to measure gold. Since gold is so soft, it’s mixed with other metals—that’s how you get rose and white gold, among other variations.
All “gold” jewelry must be at least ten karat. This means, by weight, ten of 24 parts must be gold; the other 14 parts are different metals. So, 18k gold is 18 parts gold and six parts other metals.
Say you have a 22k gold chain that weighs 15 grams. When you consider that the chain is 91.6% gold, your necklace is 13.74 grams of pure gold.
2. Keep your Karats Separate
Knowing the difference between karats, it’s important when you’re going to sell gold to make sure that the buyer doesn’t weigh jewelry of different karats together. Some buyers will pay you for the lowest karat weight. Before you go, separate your jewelry by karats.
3. Research the Rate for Gold
Before you go to sell your jewelry, look up the gold spot price, which will determine how much you will receive for selling your jewelry. Not only can the ounce price vary by time, but also by location. In the U.S., the gold spot price is usually based on the current gold price in Chicago or New York City. The higher the gold spot price, the more money you’ll make from selling your gold jewelry.
4. Find the Other Factors that Affect Price
Knowing the spot price will help you make a better decision when you choose to sell your gold, but it’s important to remember that you won’t necessarily be getting that entire price. A buyer who purchases your gold jewelry at 100% of the gold spot price would most likely lose money.
Many jewelers need to pay for the gold to be melted down to separate any other metals. As a rule of thumb, good buyers typically pay at least 50% of the gold spot price, with some like Southwest Jewelry Buyers, paying up to 85% of spot (and with coins even higher).
5. Know Your Gold
Think about the real reasons you want to sell your gold. Most pieces have an emotional attachment; decide before you go if the price you’ll be paid outweighs the emotional value of your jewelry. It’s also a good idea to learn more about the history of the piece—some pieces of jewelry may be worth more because of the designer, and melting them down could reduce the value.
Honest Jewelry Buyers in Scottsdale, Arizona
If you’re not sure about the value of your gold jewelry, or you’re looking to sell, contact Southwest Jewelry Buyers today. Honest and ethical transactions are, and always have been, our highest priority.