Since the price of gold reached a new record high in December - of $1,100 per ounce - a lot more people are looking to trade their unwanted gold jewelry for quick cash! While it’s easy to be dazzled by the money being offered these days, some cash-for-gold offers aren’t as good as you think. So, here’s how to get the best deal for your old gold, according to Money magazine:
- Never send your old gold through the mail. Mail-in companies know you’re unlikely to go through the hassle of comparison shopping. So, they’ll always offer you the lowest price possible for your gold. It’s not worth it.
- Instead: Find out what your gold’s worth BEFORE you try to sell. A jewelry store will be happy to help calculate the real value of your old gold. Keep in mind: It’s not as simple as putting your jewelry on a scale, and multiplying the weight by the current price of gold. That’s because most gold jewelry is made from a mixture of real gold and other cheaper metals. For example: A 14-karat gold ring contains only 58% pure gold.
- Another reason why you should talk to a jeweler: They SPECIALIZE in gold jewelry. In other words, they’ll be more likely to spot a valuable antique necklace, or a pair of earrings made by a famous designer. Also, if your old gold ring contains diamonds, a jeweler will be better equipped to appraise the value of those too.
- When you do decide to sell your gold: Be prepared to knock at least 10% off the price. That’s because all gold buyers will need to pay someone to melt your jewelry down - to separate the pure gold from other metals. If you sell at a gold party, you’ll have to pay an extra commission to the host.
- Finally, to get even more value from your gold: Consider TRADING it. Ron Samuelson is a jewelry dealer in Baltimore. He says he’s always more generous with store credit than he is with cash – because he wants to keep you coming back to his store. So, he’ll give you more in store credit, if you want to trade in your old gold bracelet for a new and shiny gold necklace.