Selling gold jewelry for scrap can be tricky. There are lots of scammers targeting sellers of scrap gold. The economic downturn brought on by the coronavirus outbreak has led investors to trade their precious metals for cash, causing gold prices to fall. Prices also fell during the 2008 economic crisis. If you sell scrap gold now, you can still profit, but here are some tips to avoid being scammed.
Get Multiple Opinions
Shopping around can pay off in the long run. This allows you to find scrap gold buyers that offer the highest price and possibly match a higher offer. Find three or four local jewelry stores and pawn shops and ask for an estimate. With a base price in mind, you can better gauge future offers.
The prices quoted may either be a percentage of the item’s appraised resale value or the melt value, which is typically lower. According to Consumer Reports, aim for at least 50% of the melt value if the buyer insists on that arrangement. Avoid price ranges. If the buyer doesn’t commit to a specific price, they’re likely not to pay a fair amount.
Know the Gold’s Value Before Selling
Realistically, you’ll get anywhere from 60% to 70% of the market price, as the dealer will want to make a profit. Scrap gold value is also determined by its karat weight because higher weights have more actual gold. To avoid getting ripped off, keep different karat weights together so the buyer doesn’t pay based on the lowest karat weight.
Compare price offers with the numbers you’ve obtained from your research. A jewelry store or pawn shop may make a low offer if you’re not aware of the value of your gold. There’s also the possibility your item may be worth more than what scrap gold prices reflect. If your gold has historical significance, you may get a higher price at an auction.
Research the Company You’re Selling To
Is the gold buyer listed with the Better Business Bureau (BBB)? A reputable business will be, and BBB listings include any complaints made against it. A traveling gold buyer changing their name and location frequently will not be listed. Look for accreditation as well; it’s not required but can provide you with more confidence.
If possible, get a referral for a reputable dealer. Even then, research how long they’ve been in business, what their specialties are, and whether they have a nationally recognized credential. Also, be aware of mail-in gold sales. Read the terms and conditions carefully and know how many days the buyer has to return their check (usually from when it’s issued, not when you receive it), and verify the time of receipt using registered mail.
Cash For Gold USA Will Buy Your Scrap Gold Jewelry
No matter the karat weight, grade, or color of your gold jewelry, we will buy it. Contact us online to receive a prepaid envelope. If you have scrap gold or scrap silver, we’ll provide the highest cash payment available. Call 866-300-1430 to learn more.