Cash For Gold: Supplement Your Income
Earning extra cash is a priority to many people. Even under normal circumstances people look for means to increase financial security, and getting cash for gold is one popular option. Losing income due to economical, medical or other crisis of any kind is never pleasant. Being able to turn gold into cash helps mitigate losses and perhaps even put you back in the black.
Selling gold is indeed a popular option but it requires market knowledge and selling know-how to get the best prices. Your gold has value. Some of your gold pieces have more value than others. Knowing how to itemize, organize and appraise your gold is a large part of getting the most for your transactions.
Gold has historically been a trusted, valued investment. It outperforms silver in the precious metals market and has a higher value. It most often does not beat out stocks pursuant to long-term increases, but it has historically remained a stable investment and major market player. Thus, there are numerous options both online and in-person for selling gold, even from your own home. This latter option is highly convenient, but can lead to impulse selling, which can lead to mistakes decreasing the amount you receive for your precious gold. Knowing how to sell your gold for the most cash takes research and knowledge. Read on to learn top tips on getting the most cash for your gold.
Know Your Gold’s Value
Knowing your gold’s value is an important part of getting the most cash when selling. The value of gold at the time this article was written was $1,957.70 per ounce, up $10.53 from its last reporting. Websites such as USAgold.com provide real-time market prices for gold and other precious metals.
The market fluctuates and is vulnerable to political upheaval, natural disasters, military actions and pandemics. This is true at all times, but 2020 has its share of all those scenarios making market changes something to constantly watch. Understanding the current price of gold at the time of your sale is crucial to not being manipulated into selling for less than a fair market value (FMV).
Understanding Fair Market Value
Understanding the fair market value of gold is one of the most important tips to receiving the most cash for its sale. This involves some calculations, which might not be common knowledge. Ascertaining the fair market value of your gold pieces can help you know what to expect from sellers when negotiating prices and give you a leg up on getting the most cash.
Buyers are in business to make a profit. Fair market value fluctuates with the market overall. Buyers know at what prices they can resell your pieces, and will attempt to pay you well beneath or on the lower side of fair market value in order to turn a profit. Fair market value should be considered as a range from low to high. If your gold piece has a melt value of $700, expect buyers to offer a high of 50% for your piece, or $350 or less. A 20 karat gold piece (rated at 83.33% purity) and weighing 10 grams is worth $695.56 melt value at the market price reported when this article was written. Fair market price for such an item can range variably from buyer to buyer. Understanding how to calculate that value and what offers to expect from buyers can yield you more cash for your gold.
Assess You Gold’s Purity
Your gold should have a stamp indicating its purity level. Gold can be pure or mixed with other metals. The purity of gold is assessed in karats (aka k or KT), which are measured on a scale ranging from 0-24.
Purity can also be tallied as parts per thousand or basic percentages. A karat rating of 24 means the item is made of pure gold, consisting of no other alloys or metals. This is not common in gold jewelry, because gold is a soft metal too easily dented or damaged it its purest form.
Gold jewelry averages ratings between 22 and 10 karats. A gold necklace rated at 14 karats is 58.33% gold and 42% other alloys or metals, or, 583 parts per thousand. In that example the formula is:
- 14/24 = .5833
- .5833 X 100 = 58.33%
- 58.33% = 583 parts per thousand.
Separate Your Karats in Weight Groups
Since gold is priced by weight, it is advisable to separate your karats into appropriate weight groups after assessing their purity. Some buyers have a tendency to use a bulk-scale method in an attempt to lower the potential itemized value of your pieces. This is similar to how a retail or grocery store offers a buy one, get one free sale, where you pay for the highest-priced item and get the cheapest one free. It is similar, but inverse when selling gold. If all your gold is lumped together, buyers might offer a price for the lowest average value, effectively reducing the value of your larger karat items. Separate your karats into appropriate weight groups and have them priced separately before selling to avoid this mistake.
Get an Appraisal
Getting an appraisal to assess the value of your gold will cost money. This could be money well spent, however, because having an official document from a professional gold appraiser can help support your asking price for your items. Sellers are less likely to lowball prices when faced with official documentation proving the value of your gold. The cost of the appraisal could very well be offset and even surpassed by the increased amount of cash you receive for your gold.
Research Your Potential Buyers
Doing research on potential buyers for your gold is incredibly easy for anyone with access to the Internet. General customer review websites such as Yelp can provide real-life reviews from clients having previous experience with buyers online and/or in your area. The Better Business Bureau (BBB) is a reliable source for researching gold buyers reputations, good or bad. Consumer Affairs also has a list of accredited gold dealers. Consumer Affairs is admittedly not an official government agency, however, and gold dealers do pay for the process of becoming accredited with their company.
Comparative Shopping
Selling your gold to the first buyer you trust can unnecessarily limit the amount of cash earned for your gold. It is advisable to do comparative shopping between numerous gold buyer options. This is true if you sell your gold in-person, and especially true if you sell it online. Selling online potentially presents more risk of receiving lower prices. Comparing prices, reviews and reputations can not only earn you more cash for your gold, but also prevent the possibility of being scammed.
