These days, you can make so much profit from buying and selling off your gold items. However, when it comes to trading gold, it isn’t enough to know where to buy gold coins. You will also need to know where and how to sell it as well. You can easily find businesses offering cash in exchange for your gold coins, bars or jewelry. However, before making a sale, there are a number of things to put into consideration. You stand a better chance of making a good deal on your sale when you are armed with sufficient information about the industry. Here are some of the things you should know before selling your gold.
Find out the value of the item
Typically, gold items are valued based on their melt-down value. This is the true amount of gold that the item contained. However, one interesting thing you should know is that certain gold items are worth more than their scrap value. This is particularly true for vintage items which have collectible value. Numismatist coins typically cost more than their face cost since they have sentimental value as well. Also, jewelry made by high-end retailers may also have collectible value as well.
To determine the true value of your god coin item, you should speak to an expert appraiser especially if it is an old item. This way, you will get an idea of what to expect from the sale in addition to the actual face value of the precious metal.
How much gold is in the Piece?
While we have said that it is likely that a piece of jewelry or gold coin is worth more than its face value, you still need to be aware of this value, to begin with. One of the very first things to do is to get an approximate value of how much gold the piece you intend to sell actually contains. A simple kitchen scale can give you a rough idea of what to expect although the dealers use a special unit known as the Troy ounce which is slightly heavier than the regular unit.
However, weight isn’t the only thing that determines the face value of gold items. In most cases, a piece of gold contains impurities that may contribute to the weight. These are known as filler metals. The purity of the gold (measured in Karat) will influence the price considerably. 100% pure gold is rated 24-Karat and will cost more than another piece with less quality. Some jewelry items often have the Karat grade engraved on them. There are also tests that can be carried out by a jeweler to determine this. Read here to find out more about this.
Research potential buyers
One of the most important things to do before you enter any local pawnshop or speak to a buyer around you is to research the business. Be sure that the business you are selling to is duly registered according to the state laws. This will reduce the chances of dealing with a fraudulent buyer and boost your confidence in the sale. You can check with the Better Business Bureau or any other relevant authorities. If the business is online, you can also read reviews about the business and its activities.
Find out the current asking rate of gold
To find out how much money you will be getting for selling your gold piece, you should look up the current spot price for gold. There are several online resources that will help you determine this quite easily. But bear in mind that a buyer might not offer you the same price that you find online. This is because they have to consider other factors like profit margin and additional expenses. Gold bullion coins and bars are typically closer to the spot price while jewelry might be bought at about 70-80% of the current market value.
Compare figures
Don’t be in a rush to sell off your gold piece. Even after getting a reasonable offer from a prospective buyer, there is nothing wrong in asking around in other shops just to be sure that you are getting the best deal.
Conclusion
How much you will be able to make on a deal depends largely on a number of factors including your understanding of how a gold piece is valued and your knowledge of the market. Hence it is important that you equip yourself with as much information as possible if you want to make a solid profit on your sale.