How to Know Whether to Sell or Keep Your Old Gold Jewelry
The lure of quick cash can sometimes be overwhelming, but it may not be worth dusting off that old gold jewelry and selling it. Gold-buying businesses vary in their pricing, and if you're not sure how much gold is actually worth you'll never know whether you got a good price. Before selling your old gold jewelry, consider whether any of your family members would want to inherit the jewelry and whether you'll be tempted to spend money to replace the pieces later on.
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Determine how much you can reasonably expect to get for your gold. A May 2011 MSNBC report states that you will get the scrap value for your gold and not its market value. In addition, gold buyers vary widely in how much they pay for gold, and if you drop jewelry into the mail you may receive back less than you expected. For example, a woman appearing in an MSNBC Today news clip in October 2010 reported receiving $26 for gold when she anticipated receiving more than $100.
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Consult the Better Business Bureau to see whether there are any complaints against the business you're thinking about selling your gold to. If existing complaints include allegations that previous clients received very little cash for their gold, you may want to consider whether selling your gold to this business is a risk you'd like to take. Choose a business on the basis of personal recommendation, if necessary, and try meeting with a gold buyer in person. Ask the buyer details about how his business determines the price of gold, and consider this information before handing over your jewelry.
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Consider why you originally bought the jewelry and whether you might be tempted to replace it again. If you sell jewelry and receive cash, but replace the pieces within a few months, you'll lose more out of pocket than you've received by selling. Even if you haven't used the pieces in years, the possibility that you might reintegrate them into your wardrobe may be disincentive to sell. If the pieces were gifts, consider the possibility that it may cause offense or conflict if you choose to sell them.
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Ask yourself if members of your family might want to inherit the jewelry. Your gold jewelry may have sentimental value, and children and grandchildren may wish to keep it as family heirlooms. This connection through the generations may, in the long run, be worth more than cash right now. You can satisfy this consideration by choosing to keep a few pieces to pass down and a few to sell, if you decide selling is worth it to you.
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Consult your financial adviser to determine whether your finances warrant a gold sale. Despite sentimental attachment and the possibility of a low price, it may make financial sense to you to sell your pieces.
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