5 Expensive Mistakes Made by First-Time Gold Sellers

With the high price of gold capturing headlines on major news websites, a growing number of people are selling their old gold jewelry and scrap gold. Recently, the price per troy ounce pushed its way past $ 1,400, a historic high for the precious metal. That drove many people into their garages and storage units to look for broken gold watches, chains, and bracelets that have been forgotten. Rather than holding onto these items, and letting them collect dust, they are selling them for cash.

Unfortunately, many of those who are selling their gold jewelry and other precious metal items are making costly blunders. As a result, they are receiving far less money for their gold than is possible. Below, we’ll describe five expensive mistakes you should avoid in order to sell your pieces for the highest possible price.

1 – Selling Their Items To A Local Buyer

Your first instinct may be to take your out-of-style gold earrings, broken lockets, and damaged chains to a local buyer. These include pawnshops, jewelers, or gold parties to which you have been invited. The problem with each of these options is that you’ll receive a lower price for your gold pieces than you deserve. These buyers must be able to make a profit by selling your items to others. In order for them to do so, they must pay as little as possible for them.

A much better option is to sell your gold pendants, cufflinks, and scrap gold items to an online buyer. You’ll receive a more generous offer since these companies tend to operate without geographic constraints.

2 – Neglecting To Research The Buyer

Before you choose the company to which you’ll sell your pieces, visit their website to learn more about them. Not all buyers are the same. Some are reputable while others are dishonest. Some are reliable while others can disappear overnight. An attractive offer will mean very little if the company disappears with your gold jewelry and other items.

The buyer’s website should contain a wealth of information regarding their experience, security measures, evaluation procedures, and tracking system. There should be a customer service phone number to call. There should also be a detailed description of the selling process so you’ll know exactly what to expect. Lastly, the buyer’s site should explain how long it takes them to mail a check to you once you accept their offer.

3 – Neglecting To Calculate The Value Of Their Gold

Unless you know how much your gold wedding bands, pins, and necklaces are worth, there is no way to know whether you are getting a fair price. Look for the current price of gold online or in the newspaper. Then, use that price to calculate the value of your items based on their karatage (for pieces of jewelry) or content (for coins, scrap, etc.). That way, when a buyer makes an offer for your items, you’ll know whether it is fair.

It’s worth noting that a lot of companies will offer to buy your scrap gold items for a far lower price than is reasonable. They do this in hopes you are unaware of their value. Do your research in advance.

4 – Choosing The First Buyer They Confront

If you’re selling gold for the first time, it’s a good idea to solicit offers from more than one company. A lot of people will sell to the first buyer they encounter without realizing that offers can vary dramatically. This means you may receive a much smaller check for your gold watches, chains, and scrap gold than you might from another buyer.

Shop around and compare offers. Once you find a buyer that is consistently fair-minded, you can work with them on an ongoing basis.

5 – Selling Their Items To A Middleman

The majority of companies that buy scrap gold are middlemen. They entice consumers with the promise of a fast check and a fair price, and then make a low offer for their items. Their profit comes from selling the items to a refiner for a higher price.

Most people are unaware they can sell their broken gold bracelets, money clips, and even old dental work directly to the refiner. Doing so results in a more generous offer since the middleman (i.e. the broker) has been removed from the transaction.

It has never been easier to sell your gold jewelry and other pieces containing the precious metal. With the price per troy ounce near its all-time high, doing so is almost irresistible. But avoid the mistakes above to attract a reasonable offer from a reputable buyer.