Unlocking the Value: A Guide to Selling your Gold Jewelry and Gold

When it comes to selling your gold jewelry or gold items, it pays to have a good understanding of what is involved in the selling process. In this blog, we are going to provide you with a practical guide to create awareness of the process and give important information you should know before you approach a gold buyer with the goal of getting the best price.

Reasons Why Individuals Choose to Sell Their Gold

There are a variety of reasons why someone may choose to sell their gold jewelry or gold items. Let’s dive in and discover what are some primary reasons.

FINANCIAL NEED

Individuals may sell their gold assets when facing financial difficulties or emergencies. This could include medical expenses, debt repayment or other urgent financial needs. Others may want cash for gold because they want to create or add extra cash to their emergency fund so they are ready for unexpected expenses.

INVESTMENT STRATEGY

Some people sell gold as part of their investment strategy. They may decide to liquidate their gold assets to take advantage of favorable stock market prices. They could decide to change up their portfolio, or even to invest in a different opportunity like buying land. 

UPGRADING OR DOWNSIZING

Individuals may decide that they no longer desire to wear certain pieces of jewelry because it’s no longer in fashion or is a style they still desire. Perhaps they want to upgrade to more valuable or modern pieces. On the other hand, they may want to simplify and sell gold to downsize their possessions.

DIVORCE OR INHERITANCE

Life events such as a divorce or inheritance can lead to selling gold jewelry. In divorce cases, the division of assets may be involved, or maybe the jewelry simply holds bad memories. With an inheritance, the receiver may prefer to liquidate gold jewelry for cash, or they simply don't share the same aesthetics in their taste of jewelry.

It’s important to note that individual circumstances vary, and the decision to sell gold is influenced by a combination of personal, financial, and market factors. Market conditions and gold prices can play a significant role in determining when someone may decide to sell. 

What Are Common Types of Gold You Can Sell?

There are a variety of types of gold that you can sell, each with its own characteristics and market value. We’ll examine some types below.

GOLD JEWELRY

One of the most common forms of selling gold is individuals who choose to sell gold jewelry. This could include rings, necklaces, bracelets, earrings, and other decorative pieces.

GOLD BULLION COINS

Many countries produce gold coins generally for investment purposes. Popular gold coins include the USA Gold Eagle, South African Krugerrand, Canadian Maple Leaf, and Chinese Panda. These coins are typically made of high-purity gold. Featured below is the American Gold Eagle.

 

 

GOLD BARS/GOLD BULLION

Gold bars or ingots are larger and heavier than coins. They are produced by refineries and banks and are often purchased by investors. Gold bars come in various weights like 1 gram, 1 ounce, or larger.

GOLD NUGGETS

Natural gold nuggets are pieces of gold found in their original form. These are often sought after by collectors because of their unique shapes and sizes.

GOLD SCRAP

Scrap gold includes any broken or unwanted gold items that can be melted down for their metal content. So, damaged jewelry, old gold pieces, or items that are no longer in use could be sold as scrap gold.

What Factors Should I Know About Gold Before Selling?

The value of gold is influenced by a combination of various factors. The gold market price can fluctuate based on demand, economic, and stock market conditions.

PURITY

Gold karats are used to show the buyer the purity of gold. The National Stamping Act of 1906 was passed to prevent consumer deception about the value of their gold, requiring that all jewelry must have the karat gold stamp on the piece of jewelry. The karat system allows consumers to easily identify the purity of the gold.

Gold that is marked 24K is pure gold or 100% gold. No other precious metals have been added. Gold that is 18K is 75% gold and 25% other alloys. With 14K gold, you have a mixture of 58.33% gold and the rest in different metals. 

Many countries have a minimum karat designation in order to still be called gold. With 10K gold, you will have 41.67% as actual gold along with other precious metals. Copper, silver, nickel, palladium, zinc, aluminum are some types of precious metals that may be mixed in with jewelry which impacts the value of your gold.

It’s important to consider the karat along with the weight of the gold (which is measured in troy ounces, grams or pennyweights) as both of these combined factors determine the overall value of the item. Gold with a higher karat value is often more expensive per unit weight due to its higher gold content. Having this basic knowledge helps consumers make informed decisions.

What Factors Influence the Amount of Cash You Will Receive?

ECONOMIC CONDITIONS

The value of gold is influenced by a combination of factors so its price can fluctuate based on economic, geopolitical, and market conditions. 

If there is a high demand for gold, or if the supply of gold decreases, it will increase the price of gold. High inflation can also contribute to higher gold prices. Central banks’ decisions to buy or sell gold reserves can also influence the market. Economic uncertainties like geopolitical tensions or global economic conditions often influence investors to buy gold.

RESALE VALUE

A gold buyer may consider the condition of the jewelry when it is brought in for evaluation. If it is broken, it may be worth a lower lower price given that it can’t be resold as a finished piece.  

SPOT PRICE OF GOLD

The price of gold can fluctuate daily as the market changes. If you choose to FedEx your gold to an onsite dealer or wait a couple days to bring it in to a local jeweler, the current spot price will more than likely have changed.

DESIGNER PIECE

Designer gold pieces are associated with well known brands which can positively impact the resale value. Designer gold pieces often have exceptional craftsmanship, high quality materials, unique designs and more attention to detail which contributes to its resale value giving it a better price.

Where Can I Sell My Gold for Cash?

Here are some types of places that people choose when seeking the highest price for their gold items when selling to gold dealers..

JEWELRY STORES

Jewelry stores are often convenient to find and work with, as they will offer a fair price with immediate cash payments for gold items. You can sell gold jewelry and your coins and bullion at a jewelry store.

It’s important to check out the reputation and credentials of the jewelry store. Find a jewelry store that has trained and experienced appraisers who will accurately assess the value of your gold items. Are they a certified bullion dealer? An educated staff can educate sellers about the characteristics of their gold items, including karat, purity, weight, and design details.

Established and reputable jewelry stores want to maintain their reputation which lends to fair and ethical business practices. Research the store’s reputation by reading reviews, checking their Google, Yelp and Better Business Bureau ratings. 

Select jewelry stores can also give you a collateral loan for your gold items if you desire.

PAWN SHOPS

Pawn shops can often come to mind when people want to sell something. They may think it will be less hassle than other options. Pawn establishments may buy gold items, offering cash in exchange, but keep in mind that they will generally offer a lower price compared to other buyers.

On average, pawn shops may offer between 40% and 60% of the market value of gold. The purity of the gold, condition of the item, and possibility of resale are all taken into account. It is important to note that this buyer will not be a certified expert in gold. 

If you need a collateral loan, you will be able to do that as well at select jewelry stores.

ONLINE GOLD BUYERS

Selling gold items to online buyers may seem more convenient, but there are many potential dangers and risks involved. The online marketplace is susceptible to scams and fraudulent activities and it is critical to ensure you are dealing with a reputable and safe buyer rather than a site like Craigslist.

Selling to an online buyer can also open up the possibility of identity theft, a risk of delayed or non-payment by the online buyer. Shipping risks also pose the chance of loss, theft, or damage during transit. 

If choosing this option, consumers need to be aware if they are selling to a legitimate buyer, understand the terms and conditions of the sale and insure their shipments.

GOLD AND COIN DEALERS

Some dealers specialize in gold and coin buying. They may provide competitive prices for gold coins, bars, and other forms of gold. You will want to check their reputation, credentials and fees before doing any business with them.

Gold and coin dealers typically have specialized knowledge about precious metals and coins and may be more selective in the gold items they accept. 

These dealers generally offer a fair value and usually pay immediately.

Conclusion

Do your research so you can make an informed decision when selling your gold jewelry or gold items. Understanding the selling process and the types of items your buyer specializes in can help.

Knowledge of where you can sell your gold items is also helpful, and when possible, research the reviews and credibility of the buyer.

A well-informed approach, combined with doing due diligence when selecting a trusted buyer will help ensure that you receive fair value for your gold items.

Let us help you sell your gold items at E.D. Marshall Jewelers in Arizona. Our certified professionals are happy to guide you through the process and offer you the value of your gold that you deserve.