Most people have gold items they’ve long forgotten. For example, you might own a clasp that you once wore proudly, but has since fallen into disrepair. Or, you may own a watch that no longer keeps time properly. Fixing it might be cost-prohibitive, so it sits collecting dust in a dark recess of a dresser drawer. Jewelry, coins, and even fillings can be sold for cash, regardless of their condition.
Many people fail to realize they can easily sell their gold items for profit. Given the recent climb in prices, now may be an ideal time to do so. The key is knowing the best approach to take. In this article, we’ll provide a mini blueprint you can use to sell your gold items while the market remains strong.
Tip 1 – Avoid
“Traditional” Buyers When people think of selling their gold belongings, the first buyers that come to mind are typically pawn shops and jewelers. If you must sell quickly and need the money immediately (i.e. at that moment), these buyers might represent an appropriate solution. The problem is, they are unlikely to offer you a competitive price. They need to leave themselves plenty of room to make a profit. The only way they can do so is to make a low offer.
If you’re desperate for cash or only have one or two small items to sell, taking them to a pawn shop or jeweler is fine. Otherwise, consider selling your pieces online. Some buyers are willing to send a check within one business day.
Tip 2 – Go Direct
Selling your pieces online requires a bit of clarification. You’ll find two types of buyers: brokers and refineries. The difference between them is critical. When you work with a broker, you’re selling your items to a buyer who intends to sell them to a refinery. Their revenue is based on the margin between the price they offer you and the price offered to them by the refiner.
When you work directly with a refiner, you’re removing the middleman. Whatever profit margin would have existed for the broker is absorbed between you and the refiner. That means you’ll enjoy a higher price.
Tip 3 – Review The Buyer’s Process
The process by which a buyer accepts your gold pieces and sends payment is exclusive to that particular company. While most refiners follow a similar procedure, you should take the time to review it prior to sending your items.
Can you create an account on the refiner’s website to track the progress of the transaction? Does the refiner offer insurance for the contents of the package you send them? Will you be forced to sell your items if you are unsatisfied with the price offered? Make sure you know the answers to these questions before moving forward.
Tip 4 – Don’t Assume The Price Per Ounce
When you visit the buyer’s website, you’ll see a listed price per ounce. A lot of sellers mistakenly think the dollar amount they see reflects the most recent spot price. In reality, the number shown is usually the price offered by that particular buyer.
Before agreeing to sell your gold pieces, research the most recent price on the market. Any large news or financial site dealing with currencies and metals will list the spot price. Some buyers will offer less than half the market price, hoping the seller remains oblivious. By the time the seller realizes the difference, the transaction has already been completed. Do your due diligence. It could mean hundreds of dollars in profit.
While experts are undecided regarding the direction gold prices will take over the next twelve months, one thing is clear: the spot price is high at the moment. If you own gold earrings, bracelets, fillings, or other pieces that are collecting dust, consider selling them. When the gold market turns downward, you’ll be glad you were ahead of the curve.