Friday, February 05, 2010

Selling Gold Jewelry

Knowing the Value of Gold Jewelry Pieces

With the present high gold prices, many people are considering selling gold jewelry to raise some cash. While this is not a bad idea from broken or unserviceable jewelry, it may not be such a good idea for all your stuff. You might be better off selling unwanted pieces as jewelry, rather than sending it to the melting pot.

If you sell gold jewelry for its scrap value, you'll lose much of its retail value, perhaps 75% or more. The scrap price is based on the value of the metal alone and doesn't reflect the craftsmanship or any aesthetic or antique value, let alone emotional attachment you or family members may have to the piece. It’s a good idea to have it appraised before you sell it for scarp.

Of course some jewelry pieces like one earring with a lost mate or broken rings parts of bracelets etc. are pretty much scarp anyway and probably can only be sold as such minus any valuable stones of course. Garden variety class rings and wedding bands are sometimes better sold as scarp.

The price of gold is based on a troy ounce of 24-karat, or pure, gold. A troy ounce contains 31.1 grams, or 20 pennyweights. If the spot price of gold is $1,100 USD per ounce then 1 gram of 24 karat gold is worth $1,100 / 31.1 grams or $35.37 USD. Gold prices change often so use the handy chart on this page to check updated spot prices.

Gold less than 24K is discounted proportionately:

18K is 75% pure gold, 14K is 58.3%, and 10K is 41.7% gold.
Gold jewellery of 10K or more will have a karat stamp, you this to get an idea of the content and value of gold in a certain piece.


Selling and Buying Gold Coins

Actual Gold in the form of metal is an investment that's both tangible and liquid. You can hold it in your hands; keep it in a safe deposit box or wherever you desire. Gold can be bought or sold easily and has been for hundreds of years.

Gold coins like the Canadian Maple Leaf, the Krugerrand, the America Gold eagle etc. can usually be bought and sold by going to a bank. Gold coins are one of the most popular forms of gold bullion available to the retail buyer.

These gold coins are made mostly or entirely of gold. For Instance, the Canadian Gold Maple Leaf coins are the world's most popular pure gold coin. Since their introduction in 1979, over 20 million troy ounces have been sold. As the first bullion coin to achieve the heightened standard of 9999 fine, the Gold Maple Leaf is available in five weights from one-twentieth of an ounce to one troy ounce. The Canadian mint our bullion products can be purchased through banks, coin dealers, foreign currency exchange offices, and brokerage houses worldwide.

Because these gold coins have face values they are money and thus can be bought and sold through banks etc. Obviously you do not want to sell a $50 1 oz Canadian gold Maple leaf for $50; you will sell it or buy it for the value of one ounce of gold at the time plus or minus handling fees.

Prices of gold and silver bullion products are based on international market rates which vary daily, as well as supply and demand. Be prepared for a reasonable premium to be charged over the daily spot quotations to cover manufacturing, transportation and distribution costs.

Getting a return of investments in gold follows the age old practice “ buy low sell high” meaning if you have gold that cost you say $700 per ounce 2 years ago and you sell today at say $1,100, you stand to make a $400 per ounce profit, in simple terms.

Remember in order to sell bullion coins minted with face values you do not have to send them to a scarp gold dealer. Take them to your bank first and get an opinion. Also, if you have rare or collector coins have, those evaluated by a good reputable coin dealer to get an idea of their value which could be much higher than the gold content.

Coming soon Selling gold Jewelry