How to Trade in Scrap Gold
Having too much scrap gold can be a good problem to have, and following some easy steps can make sure that you get the best price for you gold when it comes time to sell.
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Instructions
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Weigh and separate what you have. If you have a lot of gold, it will be useful to separate your gold into categories by purity. For example, separate dental/junk gold from 10-, 14-, 18- and 24-karat gold.
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Write on the bag the purity of the gold and weight. Weigh the groups on the scale, place them in bag and, using a permanent marker, write the purity and weight in grams to two decimal points. For example, write "Dental Gold--5.52 grams." This will save time later.
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Check the current price of gold. Make sure that you have checked the current "spot" price of gold per ounce as this, combined with the total gold weight, will be what your payment is based on. Spot price is the price set in markets in New York and London for 1 ounce of gold. It fluctuates greatly, and sometimes the price of gold will fluctuate $20 an ounce in a day. The price at the end of the day is referred to as either New York or London close. Gold has fluctuated over the past decades, but in recent years it has been on an upward trend.
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Visit several local coin and jewelry stores. Before you mail anything away, visit several local coin and jewelry stores to get a sense of what they will pay. Then, look on the Internet and see what some of the large mail-order places pay. Often, local options are better and pay cash on the spot. They are also sometimes more open to trading.
A store buying gold has to make a profit, so it will be paying less than the spot price of gold. An offer of 90 percent to 95 percent of spot price for gold jewelry is considered very good. For bullion coins, an offer of 95 percent to 98 percent of spot is considered very good. Of course, some gold is worth more as jewelry. This would include jewelry that is marked by a prominent jewelry maker, like Tiffany & Co. and Cartier. Typically, these trades are very quick and easy, as the profit margins are low for the buyer and they have an incentive to move quickly.
Perhaps the toughest area to find buyers would be for dental and industrial gold. If the buyer you consult does not purchase this, he or she will likely be able to direct you to someone who does.
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Go with the highest price or the company that offers you the best trade, after reviewing all offers. If you have several offers, you may be able to use this to your advantage to get a slightly better price.
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Tips & Warnings
Make sure you understand when and how you will be getting paid. For example, if you're getting paid by check, do you trust that the buyer will have sufficient funds to cover it?
If you choose to mail your gold, make sure you insure it for loss and use delivery confirmation of some sort.
References
- Photo Credit Gold jewelry set image by lune from Fotolia.com
