How to Sell Gold and Not Get Ripped Off

If you suffer from insomnia, you have probably seen the ads offering cash for your gold jewelry. Perhaps you have been tempted to raid your jewelry box in hopes of striking it rich. But before you fall for a slick-talking infomercial pitchman, take a step back and look at what they are really offering. According to Michael Gusky, a 30-year veteran of the gold buying business, many of those infomercial producers are paying consumers just 10 to 20 percent of the true value of their gold, far from the 50 to 60 percent offered by more reputable gold dealers.

• 1

  Learn as much as you can about the gold you have and about how much gold that jewelry actually contains. Contrary to popular belief, 14-karat gold jewelry is not 100 percent gold. In fact, the gold content is only 58.3 percent and only 41 percent for 10-karat gold. You can get an idea of the value of your gold by weighing it yourself and using those percentages to get an estimate based on the current price of an ounce of gold. You can find the current gold price online at sites like CNN Money and Yahoo! Finance or in publications like the Wall Street Journal.

• 2

  Visit several reputable jewelry stores in your area and ask for an honest assessment of the jewelry you have and how much gold it contains. If the jewelry is in good condition, it could be worth more than the actual price of the gold. Broken jewelry will be assessed solely for the recovery value of the gold. Try to visit several different stores, including one or two that do not buy scrap gold. Those stores can give you an honest assessment of what your jewelry is worth without having a vested interest in offering you a low price.

• 3

  Ask for a firm commitment indicating how much you will be paid before you agree to sell your gold. Some companies will offer an estimate, only to provide a much lower payment when you actually send them your gold.

• 4

  Deal only with full-time gold buyers. Many gold buying services have sprung up as the price of gold has risen, and those fly-by-night operators are often the ones offering the lowball estimates. Dealing with a gold buyer whose business existed before the current gold rush is one of the best ways to protect your rights and get a fair price for the gold you have to sell.