Read this before you sell your gold!
In this difficult economy, more and more people are selling their gold jewelry for cash. Have you seen the people standing out on street corners, spinning their “WE BUY YOUR GOLD” signs, beckoning you to their stores or booths?
There are a few things you need to know BEFORE you sell your broken and unwanted gold chains, earrings, bracelets, watches and rings. Below is the chart which shows how gold prices have skyrocketed in just one year:
What is your gold worth today?
So how do you calculate the price per gram weight on gold? It’s a little complicated. When your gold is purchased, it is then sent to a refiner. The refiner has a lot of overhead expenses, such as pricey equipment for environmental restrictions (alloys can contain very harmful agents), acids, labor, etc. plus there are impurities also. Your 14K gold may not be exactly 14K gold. Unless it states “14K P” on the hallmark of your jewelry, it probably is a tad less than 14K. The “P” means Plumb, or exactly 14K. The refinery will typically charge a 12 to 15% fee for refining down your gold or silver.
Here are equations that we use and will typically work as the NET per gram price, after refining fees: 10K gold: spot price X.0119 = price per gram 14K gold: spot price X.0168 = price per gram 18K gold: spot price X.0220 = price per gram 22K gold: spot price X.02745 = price per gram
You can easily find the current price of gold (spot price) on the Internet. Today gold is about $ 1500 per ounce. That means 14K will be worth: 1500 X.0168 = $ 25.20 per gram to the person that buys your gold. A good price for you to get today for 14K gold would be $17.00 per gram.
What you need to know:
1. If your jewelry has a gemstone(s) in it, chances are you will be giving it to the gold buyer. Almost all of these buyers are interested in ONE THING – the metal. Some of them don’t have a clue about colored gemstones. They usually know about diamonds, but very few know anything about colored gemstones. Some of these buyers will pay you their gold per gram rate for the gemstone, especially if it’s small to medium size. It’s easier for them just to weigh the entire piece of jewelry and pay you – besides, they’re usually making a lot of money on the transaction, and can afford to do it this way. It may not be a good deal for you however. For example… let’s say you have a 14K gold ring with a small blue gemstone in it. The gold buyer will weigh the ring and give you the price based upon the total gram weight of the ring, including the gemstone. That might great for you if that blue stone is quartz or topaz (less expensive colored gemstones), but what if it’s Apatite, Zircon, Aquamarine, Spinel, Blue Diamond, Sapphire, Paraiba or Indicolite Tourmaline,… etc.? Any of these gemstones are very valuable, and it probably would be a good idea to remove the gemstone and either reset it in a setting that you will wear or sell it. When you are talking about gemstones, the weight is measured in Carats. The conversion from Carats to Grams (what your gold is measured in) is: 5 Carats = 1 Gram. So, let’s say you have a 5 carat Paraiba Tourmaline and you choose to leave it in the setting. You will get a price of $15. per gram, so this Paraiba is worth $15. (1 gram). A little checking on the Internet will tell you that Paraiba can be worth upwards of $5,000 per Carat, or $25,000. (This is an extreme example, as Paraiba Tourmaline is copper-bearing and VERY rare, but it illustrates the point).
2. Let’s say you want to have a gold buying party. All of your friends come to the party with their gold jewelry that they don’t wear anymore and want that extra cash that their jewelry might bring. Did you do any price comparisons? There are a lot of people that put on these parties and make a fortune – on your jewelry. Do your homework! ASK THE IMPORTANT QUESTION – HOW MUCH WILL THEY PAY PER GRAM FOR Silver, 10K, 14K, 18K, 22K and PLATINUM jewelry. It’s much better to use an established, local resource for this party. Ask about security. How many people will be there from the buyer’s business?
3. As of this week, gold is at an all-time high, with the price for 14K to be at about $ 25. per gram. That means an HONEST Gold Buyer will purchase your 14K gold jewelry for about $15. per gram. That’s a good price. Some of the people that are putting on gold buying parties in your home, or in their stores are paying $9. or $10. per gram – that’s a ripoff! Just ask them how much they pay per gram, and comparison shop. This could save you hundreds of dollars!
4. What about Gold Filled, Gold Plated and Silver Jewelry? That is valuable too… same applies – ask the gold buyer what they will pay per gram, and price shop – it’s worth your time.
5. Do not ever – I repeat – ever mail in your gold jewelry to anyone for conversion to cash. They can rip you off any number of ways, i.e., underestimate the gram weight in their favor, etc. Once they have your jewelry, it’s out of your control.
6. Be VERY wary of the new gold buying shops that are popping up everywhere. You will fare much better at an established store that has been there for many years. Whether it’s a pawn shop or a jewelry store, I would give them your business. If their per gram price is less than their competition, I would give them the opportunity to match the price. These gold buying shops that pop up are typically a satellite store of a large business far away, are there for a short time and will severely hurt your long-time trusted local businesses.
7. Recently, there was a gold buying set up at a local Holiday Inn. They did a LOT of advertising, and there were a lot of people who brought their unwanted gold and silver to sell. I was SHOCKED at how people didn’t even realize that they were getting ripped off, and didn’t ask what they would be paid per gram. It turned out to be $ 5.00/gram. One woman had 63 grams of 14K gold (most people had more gold for sale). Because she didn’t realize she was being ripped off, she was thrilled with $315.00 she was paid. She didn’t realize that a fair price for her broken and unwanted jewelry should have been $1,008.00.
8. The current trend right now is Antique Jewelry. If you have really nice piece of Antique Jewelry, and you can’t keep it, get it appraised by a reputable Jeweler – but don’t tell them that you want to sell it (they may quote you a very low appraisal and try to buy it themselves). You might want to try eBay. You will only get wholesale pricing on the jewelry, but it will be better than the scrap prices offered.
9. Remember – the buying and selling of jewelry can be a lot like the car business. They talk “deals”, and some of them employ the same selling tactics. If you are looking to purchase some new jewelry, treat your unwanted jewelry like a used car trade-in. Get the appraisal on the jewelry first, including the gram weight, then negotiate on the new purchase.
• always ask what the buyer is willing to pay per gram, 10K, 14K, 18K, 22K, Silver and Platinum
• shop and compare prices
• never mail your gold for cash
• try to do business with a local merchant (Pawn Broker or Jewelry Store). If they offer less per gram, give them the opportunity to match the price from the pop-up gold buyer
• only use a reputable LOCAL source if you are planning to have a gold buying party; be security conscious and shop for the best price per gram
• determine what the gemstones are in the unwanted jewelry before selling it… if they are worth anything, remove them