Gold Prices Are Up – but be Careful when Selling your Jewellery

September 28, 2011

As stock markets plunged gold prices continued to soar and many consumers are trading their unwanted jewellery for cash, using options to sell gold online, at in-home ‘gold parties’, or through local jewelers.

BBB cautions consumers to do some homework before they try to cash in on the gold rush, and to consider the following before selling their gold:

  • Find a trustworthy appraiser. For an appraisal, if possible, go to someone locally whom you know and trust. Check with the Better Business Bureau at BBB suggest getting more than one appraisal to compare prices.
  • The true price of gold will not be what you will receive. Understand that the ounce quote is for pure gold. For instance, 14 karat gold is composed of just 58.5 % gold. Ask how much the company’s going rate is for each ounce of each karat you are selling. The lower the karat the less the gold content.
  • Don’t let jewellery of different karat value be weighed together. Some dealers will weigh all jewellery together and pay you for the lowest karat value
  • Don’t let anyone steal your diamonds from golf pieces. Single gold stud earrings might be worth $ or $10, yet diamonds in the earrings can be saved. Some may be too small and the labour to remove them might exceed their value, but engagement ring diamonds, for example should be given and separate value from the gold.
  • Know the terms and conditions when sending items by post. Make sure your items are insured. Obtain appraisals first if sending them by mail, check the companies policy about reimbursement if they lose the product, make a list of items and take pictures including any identifying marks