“Let the Seller Beware” When It Comes to Selling Gold
Pick an industry – any industry – and there will be good and bad people in it. The estate industry is no different. You find dedicated souls who are simply outstanding and go the distance to help their clients, and then you have those who are in it for a quick buck and could care less. You must heed my advice:
Sadly, people do get ripped off every day, and more people get taken advantage of when selling gold jewelry than the sale of anything else.
Most people take their jewelry to jewelers, thinking this is the logical place to sell it. While that’s not a bad choice, there are other options. You owe it to yourself and the estate to shop around. Some go to coin shops, antique stores, or private collectors. Try locating places closest to the refinery; you are likely to make more money.
Here are some tips to help you get your fair share:
- Have sterling and gold identified as genuine. Do not sell it at this time; just get help in identifying it. Do not sell it in a rush, unless you have to.
- Find a local place that is close to a refinery, get a quote, then take it to jewelers. Do research online to see if you can find a local resource. Most jewelers sell to refiners, so you may want to go straight to the source. Have your facts together first. It is worth taking jewelry to multiple places to get the most $$ you can.
- Pay attention to daily spot price of gold and silver, http://www.kitco.com. Prices fluctuate throughout the day every day. This site will give you a per ounce price. You need to understand that the per ounce they are referring to is pure bullion, pure gold, pure silver, NOT 14K, 10K, etc. These are not pure, so the spot price will not apply to a handful of 14K jewelry.
- The troy ounce is used in the weighing and pricing of precious metals: gold, platinum, and silver. The troy ounce is different from an ounce you would weigh on your kitchen scale. If you get into weighing metals, you will need a jewelers scale that includes troy ounces or “ozt.” You can buy an inexpensive jeweler’s scale online.
- Let’s say that gold is $1,300 per ounce. You will not get $1,300 per ounce for your 10K or 14K because it is not pure gold.
- Divide today’s gold price from Kitco.com in dollars per ounce by 31.1 to get today’s gold price per gram. There are 31.1 grams in an ounce of gold or silver. If today’s price was $1,300 per ounce, then: 1300 divided by 31.1 = $41.80/gram. Then, multiply by the fineness of the gold:
- 10K = .4167
- 14K = .5833
- 18K = .7500
- 22K = .9167
- 24K = 100% gold
So if you have 10K and the price of gold is $1,300 per ounce or $41.80 per gram, then the price of your jewelry is $41.80 x .4167 = $17.41/gram. If you have 10 grams of 10K at $17.41/gram, your scrap gold is worth $174.10.
Remember, this is for illustrative purposes. The gold still has to be tested/assayed to determine the true percentage of gold.
- Keep gold coins separated, because they have numismatic value, as well as metal value.
- You can purchase your own gold testing kit, but it will be tested again when you go to sell it.
- Weigh your items by grouping together (10K, 14K, etc.). Use a loupe to look inside the piece to find a mark. Not all pieces are marked; this is why they should be tested.
- Scrap gold dealers in store fronts (“We Buy Gold”) will likely buy from you at 30-60% LESS than the gold’s worth. A jeweler will usually pay more than this.
- Be aware that often gemstones set in jewelry are not included in the offer. Those seem to just go along with the gold, which doesn’t seem fair to me. IF it is a large stone, you may want to have it removed from the setting BEFORE you scrap the gold. Please have the stone identified!
- Private collectors may offer a very fair price, if you can find them. Know the worth before you sell.
- Gold refiners pay 90% and sometimes more, but they may have a minimum weight requirement.
- Old dental gold is usually between 8K and 18K; it must be tested as well.
If you dislike math, this helpful website for gold scrap weight conversion and melt value calculator will do the figuring for you: http://www.silverrecyclers.com/calculators/gold_calculator.aspx.
For a list of reputable dealers in the U.S., see US Mint page on recommended coin and gold buyers: http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=lookup.
©2014 The Estate Lady®
Julie Hall, The Estate Lady®, is the foremost national expert on personal property in estates, including liquidating, advising, and appraising. http://www.TheEstateLady.com She is also the Director of American Society of Estate Liquidators®, the national educational and resource organization for estate liquidation. http://www.aselonline.com.
No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com