Selling Gold: Before You Sell
Dealing in the trade to sell precious metals is never easy or without risk. Gold prices are going up almost every day ($1248 is the current price) and with the uncertain future about the financial markets in the world, gold dealers must pay top money for jewelry, bars or coins you want to get rid off.
There have never been so many places where you can sell gold. In South Florida you can’t drive more than 3 blocks without seeing a sign that reads “we buy gold”! Gold and silver buyers in the state are everywhere: not only pawn shops and jewelry stores, but also gas stations, check cashing stores and even dollar stores and supermarkets.
Some time ago, eBay began offering a new service on its site – a bullion center. It was created primarily to consolidate many types of trade of bullion-gold and silver coins and bars. Restrictions and conditions used to regulate the sale of a gold bar are no more restricting than those used for people who sell t-shirts, books or anything else on eBay. Sellers pay eBay around 10% of the price for which their bullion is sold when the transaction is complete and there’s no charge for listing.
It doesn’t matter where you sell your gold: over the internet, at a local pawn shop or jeweler; you might not get full value for your trade. In order to prevent this from happening follow these guidelines:
• Shop Around: It’s a good idea to shop the competition beginning where it is most convenient, preferably a local pawn or jeweler, and ask what is the most they could give you for your trade. Now you have an idea of the value, and can move forward to the interment and get other competitive offers. Don’t feel bad get several estimates, it is their job to provide this service, we suggest getting at least three quotes before making a decision.
• Beware of ‘dishonest’ Buyers. Be cautions sellers about doing business with transient gold dealers whom are calls “dishonest” buyers (also known as “hotel” or “pop-up” buyers). They blow into town, run ads promising high prices, and set up shop, say, in a hotel ballroom. After vacuuming up a city’s worth of jewelry and coins, they disappear, sometimes leaving their victims un- or underpaid. In one test, a gold chain legitimately appraised at $285 was offered to a variety of hotel buyers. None offered more than $145. Before you sell gold–whether to a hotel buyer or to anybody else–check with the Better Business Bureau to see if there are complaints against the buyer.
• Verify documentation. Ask the business to present their credentials: All legitimate businesses must have a state license to buy gold. They will also require you, the seller to show them proper identification in order to avoid the purchase of stolen or illegal merchandise. If the buyer does not require ID or does not fill up a form, leave the store and do not do business there.
• Is it scrap or antique? Make sure that what you are selling is not worth more as an antique or fine jewelry than the value of the scrap metal. As an example a gold Rolex watch is usually worth more as a watch than as scrap gold.
• Read the Fine Print. Make sure to read all the fine print of online gold buyers. Even legitimate online business often hide their policies in fine print and this can often cause a costly mistake. Very often they charge extremely high returned shipping rates if you do not sell them the gold even though it might be free to ship it to them. Also check their policy in case your merchandise is lost.
• Keep Karats apart. Among the new places to sell your gold are “gold parties” like those organized by Premier Gold Parties, where a group of friends or neighbors meet to socialize and sell their gold in a home setting. “While gold parties may be a convenient way to make some cash, “they may not provide you the best deal.” Why not? Too many hands in the jar: the company that organized the party gets its commission, and so does the host. At some parties, all jewelry is weighed together, regardless of its karat value, and sellers are paid according to the lowest karat value. These are unacceptable terms. Separate your jewelry in advance, by karat, and make sure you are paid more for higher-karat items.
• Always Keep an Eye on the Scale. Another way to get cheated is by the buyer using an altered scale. Make sure that the scale they use is verified by the state periodically. The BBB warns sellers to pay attention to how their gold is weighted. Business such as pawns or jewelers value gold not by the ounce which is 28grams, but by the Troy which is 31.1 grams. Some buyers do pay by the gram while other use pennyweight (dwt). A pennyweight is 1.555 grams. You have to make sure they don’t weigh you in pennyweight and pay you on grams. This will cheat you out of money since the buyer will get more for less.