What to Know When Selling Scrap Gold
You’ve seen the advertisements – gold buying companies want to buy your scrap gold! So, you need some extra money and you have some scrap gold jewelry lying around. Now what?
Many people get confused about the scrap gold selling process. There are certain things you should expect when selling scrap gold so you do not run into any surprises.
This list will help you understand how the process works, and why you get paid what you do for your scrap gold and jewelry.
Gold Jewelry can be Gold-Plated or Alloyed
Some pieces of jewelry have other metals mixed in, usually to make them cheaper to produce or to create a color or quality effect.
Some gold items can be gold-plated, but are made up of a much cheaper metal like steel. Other gold items can be alloyed with something else – Rose gold, for example, comes from alloying gold with copper and silver.
If your scrap gold is metal-plated or alloyed with another metal, then you should expect to get paid less for it than if it were all gold of the same weight.
Do Not Expect the Real Price of Gold
Too many people see the price of gold (currently around $940 per troy ounce), and they expect to get that for their scrap gold. Here is why you should not expect to get paid the real price of gold.
- A troy ounce is not equal to a regular ounce – Metals are measured in troy ounces, while other things, like grocery store items, are measure in avoirdupois ounces. 16 avoirdupois ounces are in one pound.
Troy ounces are heavier than avoirdupois ounces, so it would require more of one item for a troy ounce to be equal to an avoirdupois ounce.
To make it easy, we can use the metric system
- One troy ounce = 31.1 grams
- One avoirdupois ounce = 28.35 grams
- Gold Buyers Need to Make Money – It costs money to inspect your scrap gold, refine it into gold bars, and to get it certified. Refining costs alone can be about 10% of the price. The gold buyers need to make sure they can stay in business.
It is true the price you get paid is based on the current price of gold, but always except 20-30% or more less than the current price of gold, depending on who you sell it to.
- The Price of Gold on the Market Can Drop Fast – Gold buyers take on all of the risk when buying your scrap gold. It is very possible to see the price of gold drop by 5% or more in a single day. Although it is not common, it can happen over a few days. A gold buyer can pretty much lose all of its profit after they have paid you for your scrap gold.
Because of this, gold buyers have to factor in some risk when paying you, so it is another reason to never expect the current market price of gold.
OK, everything so far ensures that you will get less than the market price of gold. But could you be getting too little for your scrap gold?
3 Tips You Can Use to Maximize your Scrap Gold Price
Get Paid More When You Have More Scrap Gold – Scrap gold buyers work on a graduated pay-scale, so the more you have of one type of gold, the more you will get per gram. When selling scrap gold, always sell as much as you possibly can at once.
Have More than 1,000 Grams? Deal Direct! – If you have a large amount of scrap gold jewelry, you are better going direct with a gold buyer, and negotiating your price face to face.
When selling scrap gold, most people only sell about 50 grams, rarely more than 100 grams, so going direct is not something you have to worry about.
Negotiate Your Payment – Any reputable gold buyer will give you a 100% Satisfaction Guarantee. If you are not satisfied when you receive your check (and even if you are), call up the gold buyer and try to negotiate a little more money for your scrap gold. If they give in, which shouldn’t be too difficult, you can see a few extra bucks for your scrap gold.
Posted in How-To Sell Online