How to Sell Used or Unwanted Gold Jewelry for Maximum Profit

Gold made new all time highs in the first quarter of 2008. With prices in the range of $900 to $1,000 per ounce, it's not difficult to imagine that everyone wants to cash in any way they can.

Gold prices may -- or may not -- go higher since no one has a working crystal ball. However, securing a few profits is always a sound idea during a rapid increase in a commodity price. So if you are looking for an easy way to make a few bucks, how about selling your old jewelry that you no longer wear? Find that mangled gold chain or old class ring that you no longer want, or have no desire to wear, and flip them into quick cash. Learn how...

Difficulty: Moderate

Instructions

1. 

   Calculate the market value of your gold jewelry. First, determine the gold percentage of your jewelry; 24 karat = 100% gold. Therefore, divide the karat you have by 24. For example, an 18 karat gold necklace is 75% gold. (18 karat / 24 karat = 0.75 or 75%)

2. Determine the weight of real gold from the percentage calculated in Step 1. Multiply the percentage gold by the recorded weight of your jewelry. For example, an 18 karat gold necklace weighing 20 grams is equivalent to 15 grams of gold. (20 g * 75% = 15 g)

3. Convert the weight of grams to ounces, as gold is measured in ounces, by using the following conversion: 1 g = 0.0353 oz. For example, 15 g * (1 oz / 0.0353 g) = 0.53 g.

4. Calculate the final worth of your jewelry by using the current spot price of gold. For example, 0.53 g * $950/oz = $503.50. This price is used as an example only. For the current price of gold, check The Bullion Desk for daily price changes (see Resources below).

5. Sell your gold for maximum value. Do not fall for the "under sell" tactic now that you know the actual market value of your gold. This means, do not allow a gold dealer to offer you 50% under the market value of your gold. Inform the dealer you know the current market price of gold, and that you want his best offer only.

6. Find a reputable dealer. This can be done on a face to face basis at your local jewelry store, or via the Internet with a large volume gold dealer. Two reputable online dealers are: Gold Buyers of America and U.S. Gold Buyers (see Resources below).

Tips & Warnings

• Always check the background information of the gold dealer before selling your gold, especially if the dealer is online.
• Learn to haggle. If you are inexperienced or fearful of haggling face to face, consider selling your gold online so all communications are via email to allow you time to craft your words carefully.
• Do not sell gold outside of your country of origin. Going through international legality issues is far too difficult if a problem arises.
• Do not allow a dealer to convince you your gold is worthless. Any gold can be melted down and converted to new jewelry, so the metal is worth exactly what the market price dictates.

[msdemeanor]

on 12/8/2008 Very informative...to the point and easy to understand. Just what I was looking for. Thanks Matt