Gold Prices Soaring — Time to Sell?

On July 6, gold prices soared to more than $1,350 an ounce — hitting a two-year high — fueled by uncertainty over the Brexit (British exit) vote in the United Kingdom, reports jckonline.com. With gold prices on an upward climb, many people are selling their gold pieces and jewelry. Before you do, here’s what you should know.

What kind of gold can I sell?

The kind of gold you can sell ranges from inexpensive gold trinkets to solid gold coins to fine jewelry and even dental gold. A jeweler, pawn broker, gold refiner or scrap gold dealer will buy the gold at a price based on the weight of its gold content, minus a handling fee. The purer the gold content, the more it's worth.

What determines the value of gold?

Pure gold jewelry is 24 karat. Generally, the gold content of any piece of jewelry — indicated in karats — will be marked on it somewhere such as the inside of a ring or bracelet, on the clip of a necklace or the back of an earring. For example, a 14-karat piece of gold jewelry will have "14 karat," "585" (which is the numeric identification for 14-karat gold), or "14K" inscribed on it. However, the stamp may not always be accurate, so to truly know its value it’s important to take it to a reputable jeweler to have it appraised.

Also, the condition of the gold piece will influence the price you’re offered for it. It’s important that your pieces look as pristine as possible. With a gold or silver piece with a gemstone, follow the cleaning instructions for the gemstones, not the metal, as gemstones are more delicate.

Where should I sell my gold?

To cash in on today’s trend, there are gold buyers popping up seemingly everywhere, including mail order sites, gold buying stores, and even home parties. But you should beware of bringing your gold to someplace just because it seems convenient. Pawn shops generally pay faster than some other outlets, and pay in cash, whether you decide to sell it or take a loan on it. It’s important that the pawn shop or jewelry store you bring it to have a long-standing reputation and a jewelry appraiser with expertise because appraising gold jewelry goes well beyond just its weight in gold.

Getting your gold jewelry appraised

When you select a pawn shop or jewelry store and you’re ready to get your gold appraised, confirm that the appraiser is GIA-educated and the sell price will be based on the current gold market value. Don’t be afraid to haggle, within reason, and make sure your jewelry or coins never leaves your eyesight. A legitimate appraiser will do the appraisal in front of you, make a point to explain the process, and answer any and all questions.

Finally, trust your instinct. If you feel comfortable with the appraiser and the price and are ready to sell, go for it. If not, politely decline and say you’re going to think about it. Remember, selling your gold, silver or estate jewelry is not just about getting the most money — it’s also about the transaction and being happy with the outcome.