Are you unsure about where to sell your unwanted gold items?
Great news! You’ve come to the perfect destination.
Within this informative Twirl Weddings guide, you will discover:
- The best methods to maximize your profit when selling scrap gold.
- Reliable places to exchange your gold for immediate cash.
- A step-by-step process to accurately determine the worth of your gold.
What is Scrap Gold?
There are numerous motivations behind selling scrap gold. Often, it originates from heirloom jewelry that has been handed down over generations. These pieces of gold jewelry may be damaged, distorted, or simply not align with an individual’s personal taste. Additionally, scrap gold can also be obtained from antique items or collections of gold coins.
However, the concept of scrap gold can be further expanded upon. It frequently includes tiny fragments of gold that jewelers acquire while repairing broken jewelry or resizing engagement rings. These gold fragments can be gathered, melted down, and exchanged for their cash value.
Here’s a handy tip: It’s advisable to have a clear idea of the desired width for a wedding band. For instance, you can try on a 2mm ring sizer at a jewelry store and discover that a 6mm ring feels too tight.
How to Determine if Gold is Authentic
For those who are not familiar with gold and other valuable metals, it may be assumed that all gold is equally valuable. However, that is not the case. Not every piece of metal that appears gold is actually made of gold. Some metals that are colored to look like gold are just a cheap material coated with a gold-like color. There are various types of gold jewelry, and most of them are only plated with a thin layer of gold.
The only types of gold that hold any significant value are vermeil gold and solid gold jewelry. Vermeil gold is real gold that has been plated over sterling silver. While its value is less than that of pure gold, sterling silver still has worth.
One way to distinguish a real gold ring from a fake is by looking inside the shank, which is the band of the ring. According to the law, all genuine gold jewelry should have a stamp indicating its karat number followed by “K” or “KT.” In the United States, most real gold jewelry is 14 karat. Pure gold, which is 24 karat, is too soft and is not commonly sold in most stores.
However, this doesn’t mean that you cannot find 24 karat gold jewelry from different artisans, but it is not typically available commercially for engagement rings or wedding bands.
Gold-plated jewelry usually does not have a stamp, but if it does, it may be marked as “KTGP” or simply “GP.” If you come across the number 925 on the inside of a gold band, it means that the base metal is sterling silver.
Keep in mind that gold comes in various colors, not just yellow. The most common color for gold in engagement rings and wedding bands nowadays is white gold. Although many people refer to it as silver, it is actually still gold. Another color option is rose gold, which has a pinkish copper tone, but it’s still considered gold.
When it comes to gold items like gold coins or bullion, you can try a simple test. Drop the piece into a glass of water and observe if it floats. Since gold is a heavy metal, real gold should sink as it is denser than water. Additionally, gold does not rust, so if you notice any signs of rust, it’s likely an indication that the gold is not genuine.
If you prefer a more accurate method, gold testing kits are available for purchase, simplifying the process. However, if you don’t want to invest in a kit, there are other ways to determine the authenticity of gold.
The stamp on the gold piece is usually a good indicator of its value. However, it’s important to note that in older jewelry, the karat stamp may have worn off over time. If you’re still unsure about the authenticity, your best option is to take it to a jeweler or even a pawn shop for further evaluation.
Figure Out How Much Gold is Worth
Once you’ve confirmed that your jewelry piece is made of real gold, the next step is to determine the amount of gold it contains. If it’s a genuine gold coin or bullion, you can be sure that it’s pure gold without any other metals mixed in. Selling these types of pieces is easier because they are solely made of gold.
However, when it comes to scrap gold from old jewelry settings, things can get a bit more complicated.
Remember when I mentioned that 24 karat gold is too soft to be used in jewelry? It needs to be mixed with other metals (known as an alloy) to make it durable and wearable. This is why we have different numbers like 14K and 18K.
When you visit jewelry stores, you will frequently encounter jewelry made of 14 karat gold and 18 karat gold. Additionally, you may find 22 karat gold, which is often used in the best gold chains. Another option is 10 karat gold, which is commonly used in yellow gold jewelry. Keep in mind that 10 karat gold may appear less yellow since it contains only 10 parts of pure gold out of a total of 24 parts. Many 10 karat gold pieces can be found in gold wedding bands for men at popular stores like Zales and Jared.
In other countries, you may often come across gold with karat values like 6k or 9k. These karat types indicate a lower percentage of gold content. Here is a table that provides a calculated breakdown of the gold content percentage for each karat type.
RECOMMENDED: 10K, 14K, 18K, vs 24K Gold
The worth of gold is forever changing. It doesn’t stay constant but fluctuates regularly. The daily value of gold, also referred to as the spot value, undergoes daily variations.
When jewelers measure the weight of gold in jewelry, they use a unit called the troy ounce. Twelve troy ounces make up one troy pound. Unfortunately, the measurements in troy ounces can vary, which makes it more challenging for people to sell their gold.If you have one troy pound of gold, it equals 20 pennyweights (abbreviated as dwt). Each pennyweight is equal to 24 grains (gr). Additionally, there are 15.43 grains in one gram, and 31.15 grams in one troy ounce. Understanding these conversions is crucial if you want to get the most value out of your gold.
Calculate the Gold Markup
When you decide to sell your gold items, many gold dealers will inform you that they don’t solely determine the price based on weight. In the language of the jewelry industry, this means there is an additional markup price involved. However, this doesn’t imply that you cannot receive a fair price. It’s a reality that jewelry items come with markup prices.
Nevertheless, it’s important to strive for the best possible price without being taken advantage of.
If you are selling solid gold coins or gold bars, calculating the price is relatively straightforward. These pieces are made entirely of gold, and you don’t have to worry about other metals mixed in.
To determine the markup price of gold jewelry, you need to know three things: the karat of the gold, its weight, and the current market price of gold. Remember that the market price fluctuates daily.
For a detailed calculation example using both formulas to determine the cost, you can refer to an article by the International Gem Society.
Currently, the value of gold per troy ounce is $1,904.60. When the economy faces downturns, gold prices tend to rise. On August 7th, 2020, gold reached its all-time high of $2,067.15, largely influenced by the impact of the COVID-19 pandemic.
Where Can You Exchange Your Gold for Cash?
When you decide to sell your gold, it’s important to understand that you may not receive the exact market value for it. Unfortunately, that’s just how things work.
There are various types of gold buyers out there, including pawn shops, Cash for Gold stores, private jewelers, and other buyers specifically interested in scrap gold. Remember, these are businesses and they need to make a profit too.
With countless options available online for buying gold, it’s challenging to determine who will offer the best payout. You can request quotes from different places to compare. However, if you’re in a hurry and looking for a trustworthy option to quickly sell your gold for cash, I recommend considering Abe Mor Diamonds. They are located in New York and are known for their excellent service when it comes to selling gold and diamonds.
Some people may consider selling gold online to be risky, but choosing Abe Mor as your buyer is likely to result in a higher payout compared to local kiosk stores.
With Abe Mor, the risk involved is minimal because they provide free insurance for every package you send. You can send your broken gold jewelry to them and they will provide you with a quote. If you’re not satisfied with the quote, they will return your items to you free of charge, still fully insured. However, if you accept the quote, they will process the payout within one business day through a check or wire transfer.
Abe Mor is also willing to purchase gold bullion or coins, and they have a specific way to contact them for such transactions.
They have an excellent reputation in the diamond industry and are sponsored by the GIA and Diamond Dealers of New York. Additionally, they are accredited by the Better Business Bureau. Abe Mor proudly claims on their website that they have never experienced a loss in over 50 years of operation.
Selling gold online through a trusted buyer like Abe Mor is advantageous due to their higher payouts. Your items are insured, and you have control over the entire process. The only downside to selling gold online is that it may take longer to complete the transaction.
Best Places to Sell Gold For Cash
If you’re in a tight spot and need to sell your gold quickly, there are plenty of local options available, especially in urban areas. Places like Cash for Gold kiosks, private jewelers, jewelry stores, and pawn shops are your best choices for selling scrap gold locally, even if it’s broken jewelry.
Selling your gold locally has the advantage of getting cash immediately, which can be helpful in emergencies. However, it’s important to note that you’ll likely receive 10-15% less cash compared to selling your scrap gold online at a platform like Abe Mor.
My recommendation is to consider selling your scrap gold online through Abe Mor to receive a higher payout than you would at a local cash for gold place. However, I encourage you to do your own comparisons both locally and online to ensure you get a fair price. Ultimately, choose the option that best suits your specific situation.