In times of economic hardship it can be difficult to find ways to feel more financially stable. Investing in a physical commodity like gold and selling when the time is right can be one way to feel more financially secure in tough economic times.
Used for thousands of years for coins, jewellery and artefacts gold is a precious metal that has a history of high value.
Unlike other currencies that tend to lose their value because of evolving fiscal policies or inflation, gold is still considered to be as valuable now as it was when it first came into use.
There are countless gold-buying companies around today who will offer you cold hard cash in return for your valuable jewellery. However, many will offer a low price then sell it on at a much higher price.
Some gold items that you might consider selling for cash could include:
- Wedding and engagement rings
- Miscellaneous jewellery
- Tooth fillings that have fallen out
- Bullion bars
Understanding the value of gold
In order for you to get an idea of what your precious jewellery might be worth it’s important to consider the following:
Gold market price
Gold price usually remains high, but fluctuations do occur, so being aware of its value should stop you from selling your gold at what might be considered an unfavourable time.
Know the true value
The karat reading of your gold refers to the parts of gold contained in the piece of jewellery. Karat or carat is the way in which the purity of the gold is measured which ranges from 1 carat to 24.
If karat readings are low, this means that other metals are included in the jewellery. So, the higher the percentage of gold, the higher price you can demand for your jewellery.
Factors affecting value
Condition plays a big part in determining the monetary value of your jewellery. If the jewellery is in a poor condition the cost of restoration might make selling the item a pointless exercise. Jewellery looks at its best when it has been cleaned.
If you are not confident you can make a proper job of it, then let a professional jeweller clean it for you. Other factors affecting the value of the item include the materials used, where the item was bought originally and also rarity and beauty.
Where to sell your gold
Many online jewellers offer a free, no-obligation valuation so you know exactly how much you might get for your treasured item.
Pawnbrokers are unlikely to give you anything close to what you’ll get at jewellers or online, but if you need cash extremely fast, then this is probably your best bet.
Cash for gold companies
Many of these companies have came out of nowhere in the last few years. Before sending your treasure items to these companies, research their reputation online. If you discover that 15 out of 20 online reviews are negative then it’s probably best you take your valuables elsewhere.
Car boot sale
Car boot sales are a popular way to sell second hand goods such as gold, and it is somewhere where you are in control of the price. However you could be waiting around for a long time on a sale – that’s even if you make a sale at all.
If your item is classed as an antique then you have a good chance of selling to an antique dealer, which you can either find on your high street or through searching trade association websites.
An auction can be one of the most thrilling ways to make money on your gold. If rival bidders get into a competition over your gold, you could potentially be looking at a better price when selling elsewhere.
However, the fees of using an auction can be fairly high and there’s no guarantee of a sale either.
Modelled on traditional Tupperware parties at gold parties, guests are invited to bring their unused gold jewellery and sell without having to go to a jewellers or a pawnshop.
You won’t always receive a fair deal but attending a gold party can be a good testing ground to see what your item might actually be worth.
Before accepting an offer
Before you make your final decision about where to sell and how much for, always check the company’s reputation with the Better Business Bureau or your country’s equivalent.
There are lots of companies that have terrible reputations when it comes to treating people fairly, so do your homework before you part with your precious item.
Investing in gold
Rather than just selling off a few items in order to make an extra bit of cash, you could always take things up a level by regularly investing in gold. Investing in gold jewellery is the best starting point for those who are new to the game.
You can find well-priced gold jewellery by keeping in touch with local pawnbrokers, searching on websites like eBay and by simply asking around.
Some final thoughts
The key thing to remember before selling your gold jewellery is not to act on impulse and carefully evaluate every piece of jewellery that you are going to sell. Remember not to let your emotional attachment cloud your judgement on how much your item should worth.
Don’t forget too that selling gold jewellery will not make you rich overnight – but it can however place some extra cash in your pocket.
This is a guest post by http://lois-bullion.com/