So you’ve got some gold to sell but don’t know how and where to get the best price? You’ve come to the right place.
Whether you are cleansing after a breakup, getting rid of old jewelry, coins, or dental scrap, or just want to benefit from and make the most of the current high gold prices, we provide you with all the information you need to make this process hassle-free.
We will tell you when, how and where to sell gold so you can scoop the highest profit and things to do to avoid obvious rip-offs.
Before You Sell Your Gold
1. Know How Much Your Gold Weighs
The first thing you need to do is find out the exact weight of your gold in grams. To do this, you need to identify the purity of the gold in Karats (K). This will mostly be inscribed on the item, for example, 14K, 18K, 20K, etc. If it’s not, get a gold purity test kit or talk to a professional.
Next, divide the number of karats by 24, then multiply by the total weight of the item in grams. That is the quantity of gold you have.
Some gold selling sites will provide calculators to allow you to easily and quickly compute the content of pure gold in your jewelry items. Most calculators will display not only how much gold you have but also its estimated price.
This gold price calculator can help you approximate the value of your jewelry items. To get started, enter the weight of the item and select the gold purity. Then hit “Calculate”.
2. Do Your Research on How Gold Prices Work
Your gold will be priced based on how much it weighs. The prices are usually calculated in kilograms, ounces, and grams of pure gold.
But just like all traded commodities, gold prices change often and it’s imperative to keep checking the most current rates so you can have an idea of the estimated value of your gold.
Gold price by GoldBroker.com
If you are selling gold items like jewelry that aren’t made of pure gold, say, an item with 10K, 14K, 18K, or, 20K settings, the price that will be quoted to you will be determined by the amount of gold content in the item. This is basically the price of the gold obtained from the item after it has been melted and refined.
3. Understand the Spot Price
The spot price is the price at which you can buy or sell pure gold at a specific moment. It is simply the price of gold in the market right now.
When you are looking to sell your gold, this is the price you should pay close attention to. Note that this price keeps on changing based on the current demand for the metal.
One of the things you need to know when it comes to selling gold is that every buyer will quote a figure lower than the spot price. This simply means your gold will not give you the exact amount that the gold is currently worth in the market.
The reason for this is that the buyer also wants to make some profit. They also want to be able to cover the costs of smelting and refining the gold in your jewelry so it can be reused.
Therefore, the total amount you will receive from your buyer will be the current spot price minus the extra fee they add for the expenses. Ultimately, how much money you receive in the end will depend on the type and purity of the gold you are selling and the buyer you are dealing with.
4. Figure Out When To Sell
To make the most profit out of your gold, you need to know when to sell. Usually, the most appropriate time will be when the spot price is high.
The price of gold, like that of other commodities, fluctuates constantly. And just like the stock market, it is not easy to tell when the value of gold will rise or fall.
If you have considerable volumes of gold and want to fetch the highest profits possible, we recommend using gold analyses and forecasts so you can keep track of market trends.
Sites like Kitco would be a great place to start; they have the latest news on the gold market including charts and price predictions to keep you up to date. But as with everything market-related, not all their predictions are always accurate.
Because of this, we advise selling gold when you need money and when you are comfortable that the price is high enough to justify getting rid of your gold items.
Where to Sell Gold for Money
Finding the best place to sell your gold can be an uphill task. As with most things in life, heavily advertised options are not always the best places to sell especially if you hope to get the fairest deal. Below are our preferred options, with pros and cons for each to help you land a reputable buyer.
1. Online Gold Buyers
If you have some gold jewelry, bullion, coins, or any other gold item that you wish to sell quickly for money, it would be wise to sell it online, as this is one of the places you will almost always get the best price.
One of the reasons this is so is that operating a business online is more economical than running a large, physical one.
Due to the lower operating costs, it is possible for an online buyer to take a lower margin on the items they buy. What this means is that you will get a relatively better price for your gold than when selling to a physical store.
- As we just stated, online buyers are able to run their business on a smaller margin than physical buyers, which gives you a better value for your gold items.
- While every online merchant may have their own way of buying gold, the process of selling gold online is often easy and straightforward.
- The payments are usually fast and convenient.
- Most online buyers will send the payment between 24 and 48 hours, meaning selling online may not be the best option if you are in urgent need of cash.
2. Pawn Shops
Many pawn shops will buy gold items and are a great way to get cash quickly. However, they will always likely quote a lower price than reputable online merchants.
This is mainly because the majority of revenue that pawn shops make comes from lending money to their customers. As such, they need to buy the gold at a price low enough to make a good profit.
- Pawn shops give you cash instantly. This is good if you can’t afford to wait for your money for several days.
- You won’t incur the cost of shipping because you will be selling your gold physically. Just drive to the pawn shop with your gold items.
- Even though different pawn shops will offer different prices for your gold, no pawn shop will offer you a quote higher than what you would get from an online buyer.
- Pawn shops deal with a wide range of products, not just gold. Some staff, therefore, may be generalists and may not have an idea of how much certain products like gold bars or gold coins should be priced. This could affect the amount you receive when you sell your gold.
3. Jewelry Stores
Another place to sell your gold will be at your local jewelry store. However, note that not all jewelry stores buy gold jewelry, and even if you find some that do, you will still likely experience the same downsides you would with a pawn shop.
- As with pawn shops, jewelry stores will give you instant payment for your gold, making them an excellent option if you need money right away.
- You won’t have to worry about shipping your gold to the buyer, as you can simply drive to the store and sell your jewelry. And if you decide not to accept the offer, you won’t have to wait to get your gold item back.
- Jewelry stores, like pawn shops, will not offer high prices for your gold like online buyers because they need to sell at a margin large enough to pay for their utility bills, rent, and other expenses.
- Not every jewel store buys old gold. You will need to call before visiting to avoid wasting time.
At the end of the day, where you choose to sell your gold will depend on what you are looking for. Is it a high profit? Is it urgent money?
If you are looking to get the best rates, we would recommend selling your gold online. For instant cash, head to a pawn shop or jewelry store that buys gold.
How to Effectively Sell Your Gold: Tips for a Successful Sale
Now that you know what to do before you sell your gold and the best places to sell, let’s look at some of the things you need to keep in mind when you eventually find a buyer, shall we?
1. Be Open to Negotiation
Whether you are selling to an online buyer or a local jeweler, do not be afraid to engage in negotiation. If you think the price they are offering is too little, try getting them to go higher.
As long as you are doing it professionally and you are not asking for an unreasonable price, the buyer will likely give you a counteroffer that is higher than what they had quoted initially.
2. Check the Buyer’s Reputation
If you are not confident about the person or company buying your gold, check their reputation before you sell. See if you can find reviews from their previous customers and the experience they had with the buyer.
Finding out what others say about your buyer will help you avoid unscrupulous deals or engaging with buyers that offer overly low prices.
3. Make Use of Online Gold Price Calculators
Before you ship your gold to an online buyer, use a calculator to find out how much the gold is likely to cost. Even though a calculator will not show you exactly how much you will get, it will at least show you a rough approximation of your gold’s worth.
4. Check Locally First
If you don’t need money urgently, you can try visiting local buyers first and see how much they would be willing to offer for your gold before sending your items to an online merchant.
Even though there is a good chance that pawn shops, jewelry stores, and other local buyers will not offer a deal as good as an online buyer, you will be content that you paid them a visit and made a decision based on what you thought was best for you.
5. Bring Original Receipts
If you are selling a ring, bracelet, necklace, or other gold jewelry to a pawn shop, you will usually receive a better offer if you bring the original receipts, bags, boxes, and other extras. It makes it easier for the buyer to resell the items later.
6. Find Out What the Current Spot Price Is
While no buyer will give you the true spot price, it is important to at least know how much a gram of pure gold costs currently before you sell. This will not only help you figure out if you are going to make a good profit but also avoid low offers and obvious rip-offs.
Selling gold is a great way to turn unused gifts and old jewelry into quick cash. But before you sell anything, be sure to apply the tips we have discussed above. And you can always leave us a comment below if you need more advice on how and where to sell gold.