Where to Sell Gold

Significance

The price of gold is in constant fluctuation, and its value is generally worth whatever someone is willing to pay for it. Thus, where a particular piece of gold is sold will in part determine its price. Stores that specialize in jewelry will likely make a better offer for rings and necklaces than a coin or bullion shop, which might in turn offer more for fine bullion due out of a willingness to speculate on the future price of gold.

Identification

It's not difficult to find a gold buyer. Pawn shops and other brokers can be found in the local phone book, or through an online directory, and these will take most jewelry and some scrap. Many TV commercials, newspaper ads, and mail solicitations advertise gold buying as a service. Online auctions, such as those conducted by eBay, help connect buyers and sellers. When looking to sell gold, the most important factors are the credibility of the buyer and the quality of the offer.

Warning

Some of the advertisements on TV or in the newspaper are for gold-buying tours, where sellers can bring their wares to a local conference hall and sell directly to a wholesale buyer. Though the prices offered are not usually particularly good deals, this process is safer than most buyers who suggest mailing gold for pricing. This is like sending cash, because the gold usually can't be traced and leaves the seller at the mercy of the buyer. Selling through online auctions typically allows the seller to postpone shipment until after payment is processed.

Types

The spot price is the going price for an ounce of fine gold for immediate delivery at any given moment. But gold comes in all sizes and purity, so the spot price is usually only a starting point for calculating the value of any particular piece. Investment-grade gold bullion can command anywhere from 5 percent below the spot price to 10 or 20 percent higher, or more. Scrap gold contains less of the actual precious metal and is therefore discounted appropriately. Twenty-four Karat gold is considered pure, or fine, but 18 Karats is 75 percent pure gold, and 10 Karats is about 40 percent gold.

Considerations

The scrap prices for gold only contemplate the value of the metallic content, which is perfectly acceptable for dental fillings, unmatched earrings, old cIass rings, generic wedding bands, or metal recovered from electronic products. Jewelry, on the hand, can often have aesthetic or antique value based on its craftsmanship over and above the gold content, which can only be realized by selling to a jewelry broker or specialist.