5 Common Mistakes To Avoid When Selling Scrap Gold

We all accumulate jewellery, with many items that we either grew out of or never really wear. There comes a time when selling it to a gold bullion dealer seems like the right thing to do, rather than simply leaving it to gather dust in your jewellery box.

If you are soon to be collecting your old gold jewellery with a view to selling it, here are a few common mistakes to avoid.

  1. Failing To Check The Market Value – Sadly, there are a lot of pawn shops and jewellery dealers that offer a lower-than-market price. In order to avoid selling for less that the gold is worth, simply check online for the spot gold price, or approach a gold bullion dealer, where you can sell scrap gold for quick cash on the spot, and they have the best prices. It’s the same way when you purchase gold or even opt to buy silver bullion in Adelaide, for example. You always have to check the market value to know the best price to go for.
  1. Used Means Nothing – There’s no such thing as used when dealing with gold, as this very precious metal can easily be melted down and formed into something new, so if a dealer offers a low price due to the fact that the gold is used, simply tell them you wish to be paid the scrap gold value for the weight and purity of the gold you are selling.
  1. Be Unaware Of The Weight And Purity – With something as valuable as gold, you really shouldn’t trust anyone regarding the purity and weight of your gold. It is very easy to find out, as gold jewellery will have a tell-tale 9,14,18 or 24k hallmark, and you can weigh the gold with a set of digital scales. Once you know the weight and gold purity, you can search online for the correct current price, which you would find on the website of a gold bullion dealer.
  1. Settling For A Delayed Payment – Regardless of the circumstances, when you sell gold in any form, you should expect to be paid in dollars, or you could give your bank details to the buyer. When you receive online notification of the transfer, release the gold and the transaction is complete.
  1. Not Counting The Cash – Yes. This does happen. A person is in a hurry and the gold buyer hands them a wad of bills and they assume it is all there. Should you discover you have given less than you should, there isn’t much you can do if you have already left the premises. Always count the money, just as any reputable gold bullion dealer would expect – people make mistakes, sometimes genuinely, and to avoid any errors, both parties should count the cash.

Of course, the price of gold fluctuates by the minute, as global markets open and close. If you think the value is low, wait a while and the spot price of gold might rise. As a general marker, when the economy drops, the price of gold goes up, as investors move out of fiat currency investment, creating more of a demand for gold bullion. When compared to other investments, gold has a stable history.

How to Weigh and Measure Scrap Gold

When scrap gold is bought and sold, it is frequently measured in troy ounces, with 1 troy ounce equal to 31.1 grams and 1 gram equivalent to 0.032 troy ounces.

(1 ordinary ounce is equivalent to 28.34 grams; conversely, 1 gram is equal to 0.035 ounces.)

Another popular unit of measure for scrap gold is pennyweight (abbreviated as “dwt”).

About 1.555 grams, 0.05 troy ounces, or 0.055 ounces make up one pennyweight (1 dwt). In contrast, 1 gram is equivalent to 0.64 pennyweights, 1 troy ounce is equal to 20 pennyweights, and 1 ounce is equivalent to 18.23 pennyweights.

Purity, which indicates how much of an item is composed of genuine gold and how much is made of other metals, is a significant aspect of scrap gold.

Purity is measured in karats, and the greatest gold content an object may have is 24 karats, which is the karat number of pure gold.

Divide the carat value by 24 to convert karats to a percentage. For instance, 58.3% of a 14-karat (or 14K) ring is made of pure gold (14 divided by 24).

Golden Jewelry and Golden Fork on White Saucer on Beige Silk

Value of Scrap Gold

The value of scrap gold depends on two key factors: weight and purity. As a result, you can estimate the worth of a piece of gold jewelry as scrap gold if you know the price of gold per unit of weight and the karat.

The real gold content of an 18K piece, for instance, is 75% (18K divided by 24), or 75 grams of pure gold. This is the case if the piece weighs 100 grams.

All you need to do is multiply 75 grams by the current market price of gold per gram, and the result will give you an estimate of how much the gold in your jewelry is worth.

This does not imply that if you were to sell, you would receive that amount. Most gold brokers will buy your old gold at a 20%-40% discount to the market price to pay their melting, refining, and other operational costs.

Red neon buyer scrap gold sign

Tips for Selling Scrap Gold

When you go out to sell your gold jewelry follow these suggestions to be sure what you get back in cash is worth parting with jewelry that often represents precious memories.

Do not act on impulse

Thoroughly assess every piece of jewelry that you are looking to sell. Most items of gold jewelry have some emotional importance. Be sure that emotional worth does not outweigh the price that you will obtain. Broken jewelry, earrings missing a pair, and worn-out jewelry with little sentimental value are good options to think about.

Obtain an appraisal

Get antique or complicated jewelry assessed before selling it to a customer that pays by weight. Designer or antique jewelry might be worth more to sell as a finished piece than for its gold metal.

Know your resources

Gold jewelry is rarely manufactured from pure gold. The majority of jewelry sold in the United States is made of 10-, 14-, or 18-karat gold, an alloy of gold and other metals. Just the pieces of your gold that are pure gold will be compensated for when you sell it.

Find a reliable buyer

Verify that the shop has a license to buy gold jewelry in your state. To guarantee a firm is respectable, ask if they are a member of a jewelry trade body, such as Jewelers of America, that requires high ethical standards of its members. the Better Business Bureau should be consulted. Check whether the firm has any consumer complaints having to do with purchasing or selling gold jewelry.

Shop around

Get bids from many businesses before choosing a buyer. The bids you receive may vary greatly depending on where you sell them.

Safeguard yourself

Before leaving your jewelry with – or transporting your jewelry to – a possible buyer, record and photograph the items. Verify the company’s refund policy in the event of a loss. If the worth is substantial, make sure to acquire an appraisal beforehand!

Know the price of gold

Keep up with the prices of gold on several websites. It is not guaranteed that you will get the price stated for your jewelry. The pricing on websites will just give you a reference point when comparing multiple offers.

Be Realistic

Most people will not get wealthy by selling their gold jewelry. Keep in mind that the quantity of gold in your jewelry will be the only amount you receive payment for, less whatever costs the firm must charge for refining.

Safest Way to Sell Gold

The safest approach to selling gold is to engage with a reputed buyer. The following advice will help you sell your gold safely:

  1. Find reliable buyers in your region by reading reviews and examining their qualifications. Investigate prospective buyers. Verify with the Better Business Bureau to check if there have been any complaints against them.
  2. Obtain many offers. Do not settle for the first offer you receive. Receive numerous bids from different buyers to guarantee that you get the greatest price for your gold.
  3. Choose an honest buyer who will let you see how they evaluate your gold, including its weight and purity, before making a decision. They should also be open to answering your questions and outlining the procedure.
  4. Negotiate the price. If you receive an offer that you are not content with, don’t be afraid to negotiate. In order to make a deal, gold buyers frequently agree to price negotiations.
  5. Select a buyer who employs safe payment methods: A trustworthy buyer should provide secure payment choices, such as a bank transfer or a cashier’s check. Beware buyers who only give cash payments.
  6. Beware of dishonest buyers. Be aware of purchasers who promise to pay you in cash, refuse to give identification, or pressure you into selling your gold immediately. These are frequent indicators of fraud.
  7. Maintain a record of the transaction. Make sure to retain a record of the transaction, including the buyer’s name, the amount of gold sold, the price paid, and the payment method used.