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.

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5 comments:

Amy said...

This is an excellent topic for discussion as gold and silver remain in flux. If you'd like more in-depth information, I've recently launched a new website educating people about selling their gold and how to receive a fair price for it. It covers topics such as testing, weighing, and pricing gold, where to sell it, when to sell it and what NOT to sell. It also covers gold coins, gold teeth, scrap silver, platinum, diamonds and gemstones. Also gold market reports. http://www.how-to-sell-your-gold.com. I notice from reading a lot blogs and forums that people don't know how to go about selling their gold, and that's why I created it.

Robert Freeman said...

Hi Amy,

Thanks for stopping by and adding your information. Like you say, good information on how to sell gold is something that lots of people are looking for.

rupinder said...

Know the weight and purity of your gold. Scrap gold buyers will pay you according to the amount of pure gold that you have.




Sell gold for cash

Marry said...

Robert, Kudos to you for writing such a valuable post. I always used to wonder before selling my jewelry, thanks to the fear of getting low prices and loosing my hard earned money. You said it right; selling gold for scrap value will give us pennies, while we look for fat dollars from our valuables. Also we will neglect important issues such as market value of gold, craftsmanship involved in making of gold jewelry (we paid for that as well while buying it) , aesthetic value and emotions of our beloved, if attached(not for ex). But one thing I would like to add is that you must not sell it without doing extensive research (again risk factor involved). And my extensive research says- gold refiners, pawn shops, gold parties will just give you 10% of the value of gold. Best part would be go for auction houses like eBay (again you have to wait for long. If you can wait, go ahead.) or you can go to local jewelry stores. Recently my Aunt decided to sell her gold necklace. She searched a lot on internet before one of her neighbours referred her to sell it to Fabrikant Fine Diamonds in New York City. They assessed her jewelry, offered a quote and within minutes the deal was finalized because she realized that she had the best offer in hand. She was very happy with their customer service and shared their business information (http://www.fabon5th.com/) with us.

ahnn said...

When you want to sell gold jewelry, you really need to do a a lot research and your post here is a lot of help.