Nuggets of advice before you sell gold

By Google News on Sunday, April 27, 2008
Filed Under: Consumer Alert, Gold & Silver Bullion, Items of Interest

By Erin White/McClatchy Newspapers

Scrap gold and jewelry As gold’s value has shot up, so has the number of people trying to unload a broken chain or a mismatched earring or two.

Though the price of gold has fallen since the record-breaking highs of more than $1,000 an ounce in mid-March, it can still bring a pretty penny when sold for scrap. (Selling for scrap means that the gold is melted down.)

But with gold’s rapidly fluctuating prices – not to mention all the fortune hunters trying to get in on the latest gold rush – an urban forty-niner has to be careful to find a fair price.

“There are going to be a lot of people who are going to say, `Hey! We’re buying gold now,’.” says Stephen Stierstorfer, co-owner of American Coin & Jewelry Exchange, in Fort Worth, Texas. Stierstorfer says he’s wary of so-called traveling gold buyers, who sweep into town, buy up the precious metal and hit the road. He also recommends checking out a buyer with the Better Business Bureau.

If you’re ready to sell some gold jewelry, coins or other items around your house, here are answers to common questions about selling gold.

How do I know how much money I’m going to get?

Even with a reputable buyer, it’s not easy to figure out how much you’ll get for your lot. The price of gold can change quickly throughout the day. Two reputable sources for updated spot prices are www.kitco.com/market or http://www.nymex.com/gol_fut_cso.aspx. To get to the New York Mercantile Exchange site, you’ll have to agree to a disclaimer, but you won’t have to provide any information.

Most buyers pay about half the spot value of the gold, according to the Northwest Gemological Laboratory.

Is there anything I can do to get a higher price for gold I’m selling for scrap?

Bill Oyster, president of Dallas Gold and Silver Exchange, in Euless, Texas, says that the more gold you have to sell, the higher price you can command. If you’re selling less than an ounce of gold, expect to get 50 percent to 70 percent of its value. If you’re selling more than an ounce, Oyster says, you might get as much as 80 percent. Getting at least two offers will help you make sure you’re getting a fair price, he says.

What can I sell?

“We want anything that’s gold,” Oyster says, adding that last month a man came in with his father’s old dentist box and sold the gold teeth and bridges for more than $10,000. Anything less than 10 karats, though, is less desirable to buyers. Broken jewelry and mismatched earrings are popular offerings right now, experts say.

Any gold and silver exchange and many jewelry stores are buying gold right now.

What about online buyers?

Experts recommend selling in person, but if online is the way you want to go, make sure you’re using a company that offers free, insured shipping you can track. Take a picture of everything for your records and remove anything that isn’t gold, such as gems.

When should I consider selling my jewelry whole instead of for scrap?

Unless you’ve got a designer piece, like something from Tiffany & Co., getting a good price on resale will be difficult, says Suzanne Cook, owner of Southwest Gold & Silver Exchange, in Fort Worth.

“Only about 2 percent of what we see is going to be considered for resale,” she says. “It has to be really old and in really excellent condition.”

Otherwise, she says, you’ll get a better price selling the gold for scrap.

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