Gold reached new all-time highs in the first quarter of 2008. With prices in the range of $900 to $1,000 per ounce, it's not difficult to imagine that everyone wants to cash in any way he can.
Gold prices may or may not go higher---no one has a working crystal ball. However, securing a few profits is always a sound idea during a rapid increase in a commodity price. So if you are looking for an easy way to make a few bucks, how about selling old jewelry that you no longer wear? Find that mangled gold chain or old class ring that you no longer want or have no desire to wear, and flip them into quick cash. Here's how.
Determine the gold percentage of your gold jewelry; 24 karat = 100 percent gold. Therefore, divide the karat you have by 24.
For example, an 18-karat gold necklace is 75 percent gold (18 karat / 24 karat = 0.75 or 75 percent).
Determine the weight of real gold from the percentage calculated in Step 1. Multiply the percentage of gold by the recorded weight of your jewelry.
For example, an 18-karat gold necklace weighing 20 grams is equivalent to 15 grams of gold (20 g * .75 = 15 g).
Convert the weight of grams to ounces, as gold is measured in ounces, by using the following conversion: 1 g = 0.0353 oz.
For example, 15 g * (1 oz. / 0.0353 g) = 0.53 g.
Calculate the final worth of your jewelry by using the current spot price of gold.
For example, 0.53 g * $950/oz = $503.50.
Use your knowledge of the actual market value of gold to avoid falling for the "undersell" tactic. This means, do not allow a gold dealer to offer you 50 percent under the market value of your gold.
Inform the dealer that you know the current market price of gold and that you want her best offer only.
Find a reputable dealer. This can be done on a face-to-face basis at your local jewelry store or via the Internet with a large-volume gold dealer.
Two reputable online dealers are Gold Buyers of America and US Gold Buyers (see Resources).
Negotiate a deal with your buyer, providing him with all the information you have gathered about your gold.
Tips
Always check the background information of the gold dealer before selling your gold, especially if the dealer is online. Learn to haggle. If you are inexperienced or fearful of haggling face to face, consider selling your gold online so all communications are via email, which allows you time to craft your words carefully. For the current price of gold, check TheBullionDesk.com for daily price changes.
Warnings
Do not sell gold outside your country of origin. Going through international legality issues is far too difficult if a problem arises. Do not allow a dealer to convince you that your gold is worthless. Any gold can be melted down and converted to new jewelry, so the metal is worth exactly what the market price dictates.
References
- The Bullion Desk: Daily Updates on Gold Prices
- National Bureau of Economic Research. "The Golden Dilemma," Page 3, 33, 34. Accessed March 25, 2020.
- National Bureau of Economic Research. "The Golden Dilemma," Page 16 - 17. Accessed March 25, 2020.
- National Bureau of Economic Research. "The Golden Dilemma," Page 2. Accessed March 25, 2020.
Tips
- Always check the background information of the gold dealer before selling your gold, especially if the dealer is online.
- Learn to haggle. If you are inexperienced or fearful of haggling face to face, consider selling your gold online so all communications are via email, which allows you time to craft your words carefully.
- For the current price of gold, check TheBullionDesk.com for daily price changes.
Warnings
- Do not sell gold outside your country of origin. Going through international legality issues is far too difficult if a problem arises.
- Do not allow a dealer to convince you that your gold is worthless. Any gold can be melted down and converted to new jewelry, so the metal is worth exactly what the market price dictates.