Understand The Business Of Gold Buying
There is so much advertising these days about scrap gold
. People are really starting to dig into their jewelry boxes and into the bottoms of their drawers to find what they have that they can sell. The key to selling your gold is to make sure you are not going to get ripped off. After all, you want the best price, right?
The truth of the matter is that most companies are reputable, although as you well know, companies are in business to make money with as high of profit margin as possible. Gold buyers are no different, and will seek to pay you as little as possible for the gold they purchase from you.
Protect yourself and learn how to get the best price before you sell. So what exactly is scrap gold anyway? Scrap gold theoretically is any gold that has already been processed into a usable piece, but denotes something unwanted, unused, or used and broken.
How unwanted the piece is or how unused is up to you to determine. You can find gold to sell for scrap from bent, broken or unused jewelry, earrings, necklaces, pendants, antique jewelry, estate jewelry, Swiss watches, class rings, brooches or pins, dental gold, dental crowns, collectibles and coins.
You might be wondering why you can't just sell it to a local jeweler. Well, most jewelers do not buy up gold to melt down and make into other things. Nor are most of them in the business of investing in gold. If your jewelry is not outdated and is stylish enough to resell, a jeweler may actually give you a better price.
It would be wise to check with a jeweler first to find out. Now you might be wondering which gold has value, 10k, 14k, 16k 18k, 22k 24k gold, gold pieces, and gold jewelry all have cash value and can be sold to gold dealers. Costume and gold plated pieces have no value to refineries.
There are a few things you should know about selling your gold before you go about the process. In order to determine what your gold is worth, you should check the daily financials in the newspaper or online for current gold prices.
The price of gold, like other commodities, fluctuates greatly from day to day. Get the current quotes in both ounces and grams. Avoid any dealer that quotes in pennyweight/DWT. Dealers make their money off the spread between the current gold price and what they offer you for your used gold pieces. A reputable dealer should offer at least 80% of the spot price.
Some dealers will offer as little as 60-70%, so check around. There is no harm in shopping around before you pick the person you are going to sell to. Gold refiners cut out the middlemen (gold dealers) and will usually offer you over 80% of the spot price. A good offer is around 85% of the spot value and one worth seriously considering.
Make sure that the dealer will insure your gold during shipping for both directions if you are not sure that you will sell your gold to them. You do not want to lose the value of your items if your package is lost in the mail.
Reputable dealers will ensure both ways, and insurance of items in both transits is standard practice in the industry. Once you receive the companies offer, you are not obligated to take it until you cash their check or have the money deposited into your bank account.
You should avoid the direct deposit option for this reason. With a paper check, you still have the option to have your items returned to you if you change your mind or do not like the offer. Read the policies carefully before selecting a dealer or refiner if you are not certain that you will not want your items returned to you.
Most importantly, check the Better Business Bureau report for complaints against all companies you are considering before you send your items to them. Doing your research can really protect you. Think about it this way, how would you feel if you found out that gold you sold was actually 40% underpriced?
by: Jack Landry
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