How to Sell Precious Metal and Get a Fair Price

Selling precious metal collectibles can boost your bank account.

With a market of precious metals including gold, platinum and silver hitting historic highs in 2011, it may be time to sell those precious coins, bullion and old jewelry. Markets trade precious metals by the troy ounce, a measurement equal to about 31.103 grams. Precious metal dealers refer to the market price of the day for precious metals as the spot price. Dealers pay for the melt value of the precious metal content in your collectibles. Generally speaking, dealers charge a retail commission of between 10 percent to 30 percent when they buy precious metals from you.

Things You'll Need

• A computer with internet access.

Instructions

1. Gather your jewelry and examine it for markings to determine how much precious metal you have. You can sell gold jewelry, coins and bars if they are 14, 18 or 24 karat gold. Other precious metals you can sell include platinum, sterling silver and fine silver. Weigh your collection on a kitchen scale to get a rough idea of how much it may be worth.

2. Go to a reputable jeweler certified by the American Gem Society or Jewelers of America to have your precious metal items appraised. To get an accurate and objective value, have your collection appraised by a jeweler who won't be buying your jewelry. Precious metal dealers don't pay for gemstones, so have a jeweler remove stones from precious metal jewelry in your presence to create scrap metal.

3. Visit dealers in your area with the precious metal that you want to sell. Dealers should weigh your metal and make an offer right away. Visit several dealers to compare offers. Accept an offer from a buyer who pays you on the spot, instead of leaving your valuables with a buyer without an agreed upon price and promise to pay.

4. List items from your collection for sale on a reputable Internet auction website to avoid high dealer commissions. If you don't like dealer quotes, you may be able to get a better price by selling some of your items yourself. Price your items competitively based on market rates, and other auction listings for similar items. Post clear pictures of your items. Include all pertinent information, such as weight and metal content in your listing. Check buyer reputations before you accept an offer for sale. Wait for payments to clear before you ship items. Purchase the necessary insurance on items you ship to protect yourself against loss.

Tips & Warnings

• Some old coins and high-quality gemstone jewelry may have a higher value when sold as antiques or collectibles than for melt value. Visit jewelers who specialize in antiques, or collectible dealers to offer pieces for sale, as an alternative to selling them for melt value.

• If you don't have experience buying and selling on Internet auction sites, familiarize yourself with the account interface before you list your items for sale. Read the help section and understand how your account functions to avoid problems in accepting bids and completing sales transactions.

References

• American Numismatic Association: Buying and Selling Precious Metals
• "Bankrate.com"; Old Jewelry Worth its Weight in Gold?; Jennie Phipps; March 2008
• Federal Trade Commission; Investing in Gold? What's the Rush?; May 2011
• "CNN Money"; Selling Gold: How Much that Old Ring is Worth Now; Jessica Dickler; July 2011
• "Smart Money"; How to Make a Tidy Profit Off Your Gold Jewelry; Kelli B. Grant; April 2008
• Federal Trade Commission; Investing In Bullion and Bullion Coins; May 2011

Resources

• Read this Article in Spanish
• Federal Trade Commission: Guides for the Jewelry, Precious Metals, and Pewter Industries