By Ray Lundin – Gemologist
Gold today is now around $1,400 an ounce and is predicted to go higher this year. With prices going up, people out of jobs or only working part time, many are trying to sell their gold jewelry to make some extra cash. In order to get the best price for your gold, you need to know the basics about gold jewelry and shop around for the best handed out price. It is also important to know what kind of gold you are selling; if it was inexpensive, it’s probably not what you think it is.
In the U.S., karat (spelled with a “k”) refers only to the fineness of solid gold; carat (with a “c”) refers to a unit of weight for diamonds, rubies and other gems. Pure solid gold is 24 karats (24k) hence, 14 karat gold is about 60 percent gold and 18 karat gold is 75 percent gold. The rest of the weight comprises other metals mixed with gold, such as nickel, zinc, copper, silver, etc. Fourteen karat is most commonly used, 18 karat is frequently used in high style jewelry and 10 karat is less expensive yellow or white gold jewelry. Pure gold (24k) is so soft, it is not used in commercial jewelry.
Karat gold articles are stamped with the karat designation except that no karat stamp is found on articles with less than 10k. On articles manufactured after June 1962, the karat mark must be accompanied by the name or trademark of the person or company that made the article. Check your gold rings and other gold jewelry for the stamp that tells you how much gold was used to make it.
Gold electroplated articles have the least amount of gold. The gold is applied to a metal by an electrolytic process. The thickness in this electroplating is measured in millionths of an inch. A “gold-washed” or “gold filled” article usually has more gold than a gold plated article and will wear better. You may be sure that an article not stamped as to gold content, as explained above, are either electroplated or have so little gold as not to warrant a karat marking. (The author has gold leaf used in calligraphy that is so thin that pieces will float in the air thus making weighing impossible unless weighing in bulk). In gold-filled or gold-plated articles, a base metal is covered by a sheet of karat gold. On articles other than watch cases, the quality is stamped by a mark such as “1/30 10k rolled gold plate” or “1/10 12k gold filled,” which means that 1/10 of the weight is 12k gold, etc.
Dozens of websites, TV ads and newspaper ads present their gold prices as the highest to be found. TV ads use well-known celebrities as pitchmen to demonstrate how easy – and trustworthy – the process really is. Drop the gold in the mail today; a check shows up by the end of the week. People wanting to sell their gold are often disappointed with the prices they are being offered. In some cases they simply believe what they’re getting is the best deal. Not necessarily true. A bit of knowledge and shopping around will land the best price.
The profit margins merchants look to take on your gold; that is, the price they will pay you compared to the full price of pure gold that day, ranges from as little as 40 percent of the item’s value to as much as 74 percent. In other words, for a piece of gold worth $1,000 in today’s market, merchants will offer you $250 to $600 for it. The person buying your gold is looking to sell it also. He’ll likely get 98 percent of that full value from a gold refiner who will melt it down and resell it yet again.
Tips when selling gold
1. Forget the price you paid for it; it is scrap gold and it is priced as such.
2. Remove gemstone from the jewelry.
3. Know the price of gold the day you are selling your gold.
4. Do the math. Know the 100 percent value to see if the offer is fair.
5. Get offers from several stores, whether jewelry or pawnshops.
6. Avoid online buyers.
7. Never let strangers view jewelry at your home.
8. Walk away if you don’t like the offer; there are many other places that will make better offers.
9. Know ahead of time what you have.
10. Again, go to three or four places to get the best price offer.
