What To Know Before You Sell Your Gold: A Comprehensive Guide

If you find yourself in possession of a lot of old, unwanted or broken jewelry (or if you’re in need of a little cash), selling it to a local jeweler could be a great option. But before doing so, it’s important to educate yourself on the process and what questions to ask–otherwise you may get much less than the desired value for your gold.

What to Do Before Selling

The first thing you need to understand is the value of gold in general and how that relates to the value of your items. Gold purity is measured in karats (K) and 24k is pure gold. The most common karats of gold that you will see in jewelry are 18k, 14k, and 10k. There are some countries and cultures that make their jewelry in 22k and 24k, but it is not typically recommended because the higher the karat, the softer the metal and it may not hold up to wear.

The higher the karat, the more gold content the item has. 24k is mixed with different alloys (other metals) to create the other karats. The higher the karat, the more the gold is worth, so knowing the karat of your items will help you determine their value.

The weight of gold is usually measured in grams or troy ounces. There are many calculators online allowing you to convert measurements, so don’t worry if you don’t have the ability to weigh your gold according to these units of measurement. The value of gold changes on a daily basis. It changes based upon supply, demand, and the state of the economy. Checking the daily price of gold before you head to your jeweler to sell our gold is standard practice and a great starting point. You can also use sites such as Kitco to view up to date gold prices.

Before taking in your gold to sell, you should clean it and sort it by karat if possible. Most jewelry will contain a stamp, which lets you know the karat. It will usually look like an indentation in the metal and should say 14k, 18k, etc. This will make it easier for the jeweler to determine what you have. If you have items without a karat stamp, keep those separate and the jeweler can test the jewelry to determine the karat. If you have any type of documentation that accompanies your jewelry, such as grading reports or appraisals, you should take those items with you. Jewelry that has documentation has a better chance of being sold for a higher price, especially if your documentation is from a reputable source, such as the Gemological Institute of America (GIA).

Where To Sell Your Gold

There are many places you can go to sell gold, and each has their pros and cons.

Jewelers: Jewelers have the necessary tools to test your items and determine what exactly you have in order to offer the most accurate pricing. Some jewelers will purchase items to resell them as estate items, and others will purchase them just for the scrap value of the gold with the intention to melt the items. You can ask the jeweler what their intention is and most will be open about it.
Pawn shops: Pawn shops may offer quick cash, but you’ll more than likely get less for your jewelry. Unless you need to sell your items immediately, we would recommend other avenues first.
Gold Buyers: Gold buyers place ads in various places and sometimes travel for events to purchase gold. They are usually purchasing in bulk and to melt the items, but they can certainly offer better pricing than a pawn shop.

Feeling comfortable with who you’re selling to is crucial. You should feel confident in their reputation and abilities, and they should be open and honest about their buying and selling practices. Do your research by reading online reviews and look specifically for jewelers who are members of trade organizations, such as Jewelers of America.

The Gold Selling Process

It’s recommended that you obtain multiple offers from different locations, however if the first buyer offers you what you were expecting based on your initial research, then go with your gut. Most buyers are required to ask for ID and send information on the purchased items to a local police department. They also hold onto the items for approximately 30 days to make sure they haven’t purchased any stolen goods. This protects both you and the jeweler.

Once you arrive at the buyer’s office they will first inspect your jewelry for any stamps. They will also test the metal using acid tests. This is where a small drop of acid is put on the gold and depending on how it reacts, this will alert the jeweler to what karat it is.

Once they have separated the jewelry by karat, they will weigh it. They may also test any stones using a diamond or gemstone tester to determine if the stones are real, lab grown, or costume jewelry. Once this information is obtained, the buyer will work on pricing based on the daily price of gold and the value of the stones (if any). At this time, if you received other offers from a different buyer, you can mention this and sometimes the buyer will match to make the sale.

While it makes sense that you’d want to get the most possible for your items, it’s also important to be realistic and understand the market. Expecting too much will make it so you may not end up selling at all, and since the market can change quickly you may miss out if the price of gold happens to drop. The offer from any buyer will likely be slightly lower than what you calculate on your own, but remember that buyers have to process your items, clean and repair them before they are available to sell again, so they need to account for the labor and materials of that process within their offer.

Selling gold to a jeweler can be a good way to get some cash if needed, especially if you have old, unwanted, or broken jewelry. To get the best price, it's important to understand the value of your gold by checking its purity and knowing the daily market price. Clean and sort your gold by karat before selling, and bring any documentation like grading reports or appraisals. You have the option of selling gold to jewelers, pawn shops, or gold buyers, but regardless of which you choose, make sure to do plenty of research on potential buyers and look for those with good reputations. Be realistic about market conditions to avoid disappointment, and remember to take your time to maximize your returns and have a smooth selling experience.