To Sell or Not To Sell Your Gold
With the ever increasing stream of news reports and magazine articles telling us how the gold price is reaching new record levels virtually every day, it comes as no surprise that so many people around the world have decided to finally cash in their gold in exchange for some fast money. Many factors are believed to have contributed to the soaring gold prices, including the global economic crisis, falling interest rates and the rapid depreciation of the U.S. dollar.
The awareness about the fact that the gold production is declining has also contributed to the fact that a growing numbers of investors are looking into gold to improve profits. If you decided that you want to sell your gold for cash there are a number of different ways to do it.
If you want to sell a piece of jewelry that is in good condition or that has a historical value, your best option is usually to sell it to a consumer, collector or jewelry store rather than a cash for gold company as they look at the gold value rather than the aesthetic value of the jewelry. Almost all cash for gold companies have a business model that is built around melting the gold down and selling it and they therefore do not care about the history or aesthetic value of the item.
Low quality jewelry, scrap gold, broken and torn jewelry etc can however on the other side, be very suitable to be sold to a cash for gold company as it is an easy effortless way to raise money from your junk gold. Cash for gold companies can also be a very good option if you need money quickly and don’t have the luxury of time needed to find the right buyer.
It can be a good idea to shop around before you make a decision because there are a number of different cash for gold companies out there who all want to buy your gold. Some cash for gold companies require you to send you the gold to get a valuation while other companies will offer you a estimate over the phone before you send them the gold.
Always read the fine print before relinquishing any gold. What will happen if you find their offer to low?
Within how many days do you have to challenge the offer and demand your gold back? Which party is responsible for the gold, i.e. if it gets lost in the mail?
There is one more thing you should know before you sell your jewelry to a cash for gold company or anyone else for that matter and that is the difference between scrap metal value and fair market value. Scrap metal value or scrap gold value is the price you get for gold that is likely to be recycled, e.g. broken and dental jewelry.
When you sell your gold as scrap to cash for gold companies you usually receive a percentage of the daily spot value, the percentage usually range between 40-80%. The daily spot value of gold is the value of gold traded on the global gold market.
Gems and precious stones usually do not increase the value of scarp gold items unless they are really large or of very good quality but even than they normally do not increase value by more than 50%. Fair market value is the price you would pay for your jewelry in a store and is usually based on what similar jewelery is currently selling for.
The market value is affected by a number of different factors and not just the gold spot price that day. The market value is affected by a long row if different factors such as the presence of precious stones, how trendy it is at that time in what condition it is.
It goes without saying that the market value of a piece of jewelry often is significantly higher than the scrap value of the metal they are made from. However, if you have gold that holds no sentimental meaning for you, and is outdated so jewelers may not be interested, selling it for scrap is a great idea.
So although you might want market value of your jewelry, if it is broken, ugly or outdated, you may end up getting more by selling it to a scrap gold broker.
Jack R. Landry has a PHD in financial services and has written hundreds of articles relating to financial products and scrap gold buyers. He has been a consumer advocate for 25 years.
Contact Info:
Jack R. Landry
JackRLandry@gmail.com
http://www.ScrapGoldBrokers.com
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