Thinking About Selling Gold? Here’s What You Should Know

Have you ever noticed a jewelry store with a big sign saying “We Buy Gold”? It’s hard to miss—there are plenty of places out there offering cash for your gold. With gold prices soaring above $3,000, you might be contemplating selling. But hold on before you head over there.

Here’s a brief guide if you’re considering parting ways with your precious metals.

1. Gather Your Gold

The first step in selling your gold is to gather everything you have. Unless you’re a serious collector or something, it’s likely that what you want to sell is ordinary jewelry. Suellen Kirk, co-owner of Quakertown Gold and Coin Buyers in Pennsylvania, mentions that they buy all sorts of gold items including gemstones, coins, and bars.

Purity is key here. For example, a 24-carat piece contains 99.9% pure gold—the most valuable type by weight. Compared to that, 14-carat gold is only about 58.3% pure.

Gold coins and bars, which often go by “bullion,” can also be interesting. You may even have some as an investment—places like Costco and Walmart sell gold bars these days. Coins, particularly, might retain extra value depending on their age, condition, and rarity. So, knowing what you have before selling is really important.

2. Find a Buyer

Next, you need to seek out buyers. If you have some gold to sell, it shouldn’t be too hard to find a buyer nearby.

Local Options

Your local jeweler or pawn shop could be a good starting point. Fausto Argueta, the owner of F&L Jewelry in Bel Air, Maryland, usually buys gold for its scrap value. This means he melts it down to repurpose it but also buys pieces he believes he can resell.

Purchasable items might hold more value. Argueta mentions, “We polish it, restore and resell the product.”

More specialized gold dealers, like Kirk’s shop, are often known as coin shops. They generally send what they buy to a smelter for refining. In both cases, you can take in a worn or broken item and get an estimate of its gold content.

If you feel pressured to sell, that’s not the way it should be. Argueta even says if a piece is more valuable than he can offer, he’ll guide customers elsewhere.

Selling Online

Of course, there are also numerous online platforms where you can sell gold. There are reputable companies with good reviews, like JM Bullion and Apmex. If you go this route, you’ll pack up your gold, ship it, and wait for their final assessment.

3. Manage Your Expectations

The “spot price” of gold fluctuates based on market conditions and is typically reported for troy ounces, which are slightly heavier than regular ounces. Since certain tariff announcements, prices have been on the rise. However, the spot price is just a rough guide, not the actual amount you’ll be paid.

Kirk explains that different shops have varied formulas for how they calculate the amount they’ll pay for your gold. The price you might receive will differ from the spot price, especially since lower-carat gold, like a 14-carat chain, won’t be valued the same as pure gold.

Some online services do share their payout rates. For instance, Express Gold Cash claims to pay out 90% of the value for bullion and up to 85% for refined gold items.

4. Preparing to Sell

Keep these tips in mind as you prepare to sell your gold.

• Check Legitimacy: Look for a buyer that is transparent about their rates. You shouldn’t feel obligated to sell right after you receive a quote. Doing a bit of research, like reading reviews and checking ratings on the Better Business Bureau website, can help.
• Get Informed: Knowing the current market price is crucial before you get any offers. You can even use an online gold scrap calculator to estimate the value based on weight and carat.
• Seek Multiple Offers: If you can afford to wait a bit, gather several quotes. It’s worth finding a buyer who gives you a fair price and a good experience.

If selling doesn’t seem right to you, keeping your gold and waiting to see how the market changes could be a valid option as well.