Is Selling Unwanted Gold Jewelry a Good Idea?

We've seen the commercials...sell unwanted gold for cash by simply mailing it in an envelope to a company. They send you a check in return. I recently went to the mall, and I even saw a kiosk where an individual was sitting at a desk, soliciting people's gold jewelry. I even saw a small store in a strip mall where you could go in and sell your gold as well.

This leads to the question: is selling unwanted jewelry the way to go in this down economy? There are things you should consider before loading up your gold.

Beware of Scams

It's only common sense. Sending your gold to a distribution center and hoping for a check in return could end up to be really bad. I am a natural skeptic, and personally would never make a business transaction unless it was in person. Look at the fine print of any contract or program details. Make sure you get your jewelry back if you aren't happy with what they offer you.

Check out the company you plan on doing business with through the BBB and speak to people you actually know that have had business dealings with them in the past.

How much is it worth?

You aren't a jewelry appraiser. You don't know how much that old necklace from grandma is worth. It may very well be only worth the price of scrap gold, but then again it could be a precious treasure. If you are planning on selling some items of jewelry, you should get it appraised. You might find out that you would be better off selling your possessions at an auction, or allowing a jeweler to hold it on consignment.

Know what your scrap is worth

Knowing how much gold you have can help you from getting ripped off, too. To find out what your gold is worth, take the weight in ounces, multiply it by the percent of gold contained in the product, and then multiply that result by the spot gold price.

Pure gold is 24 karat. If you have a 14 karat gold bracelet that weighs 2 ounces, and the spot price of gold is $1,000 an ounce here is how you would calculate what your scrap is worth:

2 ounces x (14kt/24kt) x $1,000 = $1,160

Deciding to sell your old jewelry for cash is a matter of your own personal taste. Consider getting an appraisal of your jewelry, and also calculating what you should receive based on the above formula before you mail off your treasures or walk into a store.

Source:

Cash for Gold