Gold recently traded at an all-time high of over $1430 per once, and that got me thinking about selling some jewelry that I had for a long time and wasn’t using.
You might wonder how much your gold jewelry is worth, and you may even consider selling some of your unwanted jewelry. What should you do and where should you go to sell your gold?
We all see the TV and local newspaper advertisements of the road shows coming to town advertising “gold exchange” and “we buy gold for cash” and we see companies advertising “mail your gold to us for cash”, but do they offer the best prices? And what about the local pawn shops and jewelers? Who is going to give you the most for your gold?
After visiting a local road show, a local pawn broker, and several jewelry shops, this is what I found. I set out with 4 gold bracelets and 1 gold ring. Totaling 13.5g of 14kt and 10.6g of 10kt.
First, we have to start with a little math.
24kt gold = 100% pure gold, 14kt = 58.5% pure, and 10kt = 41.7% pure.
Using a current gold market price of about $1400/ounce: 1 ounce (or about 28.35grams) in 24kt gold can be equated to a market price of $1400; 28.35grams in 14kt gold can be equated to a market price of about $817 ($1400 x 58.3%), and 28.35grams in 10kt gold can be equated to a market price of about $583 ($1400 x 41.7%).
I need to point out that when buyers purchase your unwanted gold jewelry, they typically sell it to a goldsmith who melts is down to be used to manufacture new products, so the buyers and goldsmiths expect to buy your gold at a discount to allow for some margin on their side.
So based on the above math, the value of my 4 bracelets and gold ring can be equated to a market price of about $600 …but this does not include the “margin” or “discount” the buyers and goldsmiths expect.
I first visited a traveling gold exchange that set-up shop in a suite at a local hotel. They offered me $177 for my four bracelets and one ring (29.5% of the market value).
Next there was a local pawn shop which offered me $230 for the same items (38.3% of the market value).
I visited a local jewelry shop that offered me a total of $280 for the items (46.7% of the market value).
The last place I visited was Paradise Coin & Gift which gave me $295 for my jewelry (49.2% of the market value).
By doing a little comparison shopping, I added over $100 dollars to my lowest bid, but it still seems like a very large profit that the buyers look for. I expect there are better sources to sell your unwanted gold.
If you know of any better sources that buy gold, let me know.
It is important to understand how to do the math when considering to sell your unwanted jewelry. Beware of scams and dishonest buyers, and don’t be afraid to haggle.
~Savvy Saver Girl