The business models adopted by most gold-buying companies are quite simple: they purchase the gold, have it melted down and then they flog it for profit. Therefore, when you are planning on selling any of your gold pieces, the initial thing to take into consideration is the variation between its actual retail price and its value after melting. The retail price of your gold is its cost were you to purchase it in an actual store. In all probability, you may just get offered a fraction of this price.
In an article titled “Selling gold: How much that old ring is worth now” for CNN Money, Jessica Dickler wrote in July 20, 2011 that whether you are selling gold to online buyers, at a neighbour’s home gold party or to a jewelry store, it is important to bear in mind that what your gold jewelry could fetch will vary widely.
Today there are a number of options available if you are eager to sell gold.
1. Your Local Jewellers
The easiest choice is to just haul your gold pieces to a local jeweller in person. Even if it so happens that you don’t wish to sell or are unable to actually sell, it could be an excellent method of getting your pieces valued. If necessary, go from door to door and bargain on the spot.
2. Postal Gold Websites
With this option, you receive an online quote; then you send in your gold for verification after which they make an offer to you. Regrettably, not all of the gold mongers possess a great reputation. In fact some of those who appear most convenient might also turn out to the least scrupulous. So before rushing off to sell that family heirloom, take some precautions by doing some background research. Australian law under the Banking Act of 1959 requires that all gold traders be registered. Confirm their registration credentials.
3. The Pawn Shops
In general, pawn shops have got a bad reputation being the last destination for desperate sellers. However, they could also form some of the best locations for selling your gold. However, an important consideration is the fact that the pawn shops are basically profit making businesses and they endeavor to give the seller as little cash as they can. If you appear to be in a big hurry or desperate, or simply take the first offer made, odds are that you may be getting a raw deal. The best way of maximizing your pawnshop deal is through a bit of research. Based on several comparative searches, it is possible to get some idea of what possibly you could expect.
Knowing the karat of your gold is vital before you start the selling. For example, in the US, the Federal Trade Commission has made it a requirement that all jewelry sold be described in terms of karat fineness. 14 karats means your jewelry is fourteen parts gold and ten parts other forms of metals, or around 58 per cent gold. The maximum Karat level is 24. Majority of jewelry will range from 10 to 18 karats. Karat values are the same throughout the global gold industry whether in Australia or in the US. Additionally, jewelry of different karats ought to be weighed separately. From time to time gold dealers may weigh all your jewelry pieces together and then award you the most lowly karat value, something you must avoid.