Techniques for Selling Gold Jewelry

Getting a good price for your old gold jewelry takes research.

With gold prices soaring and buyers advertising heavily on television and the Internet, you may be thinking of cashing in your old jewelry. Be aware that not all gold buyers pay the same rates for jewelry. To avoid getting ripped off and netting the most for your gold rings, necklaces and earrings, learn how gold is priced, know the rough value of your jewelry and investigate buyers.

Pricing

Gold buyers pay a portion of the scrap metal value of your jewelry, not the market value. That's because they have to pay for their expenses and also make a profit. The price also depends on the karat of gold you have. Twenty-four karat, the purest gold, brings in the most money, with the prices dropping as the karat size goes down. Look for a stamp on your jewelry, such as "14K," to determine the level of gold purity.

Weight

Before selling your jewelry, determine how much it weighs. Buyers weigh gold on jewelry scales that measure pennyweights. To measure your jewelry on a kitchen scale, make the following conversions: 1.5 grams equals 1 pennyweight or 1 ounce equals 18.23 pennyweights. Divide the total pennyweights by 20 to get the troy ounce (20 pennyweights equals 1 troy ounce). Check the newspaper or online to learn the current gold price per troy ounce.

Buyers

You have many choices when selling your gold. According to Bankrate, you'll get the best price from a jeweler or coin shop --- up to 70 percent of the gold's value. A jeweler may also pay more for a vintage or artisan piece and will let you trade your gold jewelry for something new. Pawnshops may not offer a top price, but they allow you to buy the jewelry back if you change your mind. While legitimate gold buyers can be found on the Internet, some online gold buyers pay significantly below value. A 2009 Consumer Reports article found that Internet gold buyers only paid between 11 and 29 percent of the gold's value.

Research

To find the best price for your gold jewelry, take your time and ask around. Consider having your jewelry appraised before you sell it. Call jewelry stores and coin and pawn shops to see what they're paying for gold. If you decide to use an Internet gold buyer, check its online trading license and Better Business Bureau status.

References

• Today Money; 5 Ways to Sell Your Old Gold Jewelry; Erin Peterson; May 2011
• Good Morning America; Selling Your Gold Jewelry on Your Own? Get the Do's and Don'ts; Suzan Clarke; March 2010
• Bankrate; Old Jewelry Worth Its Weight in Gold?; Jennie Phipps
• Consumer Reports; Cashing in Gold? Here's the Catch; November 2009