It all started with the Cash4Gold commercials on TV (scam alert). You send your gold in the mail and receive a check for the scrap gold value of your old jewelry. Since then, everyone and their brother is offering to give you money for your old gold jewelry.
Where NOT To Sell Your Gold
The old thing was tupperware parties…the new thing is gold parties. I’ve seen a lot of this lately – companies from out of town, set up in a hotel for a few days and advertise regularly in the area a couple weeks before. When you factor in travel expenses, employees, and advertising , it isn’t possible for these places to give you top dollar for your gold and make a profit.
I’ve also seen kiosks in the mall that will buy your gold and give you cash. These places offer some of the lowest prices I’ve seen. Remember, they’re paying thousands in rent to be in that location, and all they do is buy gold.
Where Should You Sell Gold?
Normally an independent jeweler or cion shop will be able to give you some of the best prices for your gold. Most of the time they will be offering you scrap gold value for your jewelry. The exception would be if the piece is in like-new condition and it has a higher resale value.
So, how do you figure scrap gold value? Well, most jewelry is either 10k or 14k gold, meaning there is only 41.6% or 58.5% actual gold in the piece. The item is weighed and the amount of gold is calculated by determining the karat.
Here is where some people get confused; nobody will give you 100% of what your gold is worth, and here’s why.
First of all, the gold buyer must pay taxes on the gold they purchase from you. Second, a jeweler or pawn shop cannot melt the gold down on-site, so they must send the gold to a refiner. The refiner is going to charge a fee for their services. The average person cannot send their gold directly to a refiner because they only deal with customers who can supply a very large quantity. Therefore, a jeweler or pawn shop is also taking a cut for buying the gold from you.
Look for a buyer who will pay the best price for your gold, but don’t expect to get 100% of its worth, the national average is a payout of 50%, but if you look around you can get 65%.
Selling Diamonds and Other Gemstones
Aside from selling your diamonds to someone online, you’re other options include a pawn store or local jewelry store. Most independent jewelers now buy gold, but not all of them buy diamonds. At Precieux Art Jewelers, we buy diamonds (loose or mounted) in addition to precious metals. The only exception is extremely low quality or very small stones (less than 1/10 carat).
Jewelers will not buy most used colored gemstones for their value. Reason being, most used colored gemstones have been scratched on the surface and have no resale value. If the stone is large enough to be re-cut, this is an option. But now a jeweler has to look at the time and costs to get the stone re-cut versus what they can buy it at for wholesale. It’s usually not worth it, but a really nice sapphire or ruby could definitely be worth something even if it’s scratched.