Unwanted or broken jewellery might seem useless to its owner apart from the sentimental value. But if it’s made of gold, the state it’s in doesn’t matter and it can even have a greater value to those that buy scrap gold. After all, it will simply be melted down and turned into something new. If you need money fast, selling your scrap gold can turn unused items such as necklaces, watches, and even dental gold into quick cash.
There are numerous places that buy scrap gold, and the process is generally easy and straightforward. However, especially if you’re finding it hard saying goodbye to grandma’s special broche or parting with that ring your great grand-aunt once gave you, which is now missing the stone – you want to make sure you’re getting the best price when cashing it in so regrets are small.
Step 1 – Before you sell
In order to make sure you’re getting a good deal you should take a look at the current gold price. Just like everything else on the stock market it fluctuates daily. For example, when gold prices were first announced in 1792 one ounce was worth $19.39 (gold prices are always stated in US Dollars). Prices stayed roughly the same for almost 200 years, until they started climbing steadily in the 1970s. By 1979 they had risen to $459 per ounce and by 2009 had cracked the $1000 mark. In 2018 the average gold price per ounce is $1216.
What’s with the karat?
When it comes to evaluating the worth of what you’re selling, the purity of the gold plays a much bigger role than for example the monetary value of the item. Most gold jewellery is not actually made 100% from gold, but is often mixed with other metals such as copper or silver. The purity of gold is determined in karat. 24 karat is pure gold, 18 karat is 75% pure and so on. For 1g of pure gold you can currently expect around $39.
Step 2 – Who buys scrap gold?
Pawnshops
This might be an option if your jewellery is still in good condition, as pawn shops might include the sentimental and artistic value of items. However, damaged goods are often refused and the rates you generally get at pawn shops are usually not that great. It takes a lot of negotiation and time which could be invested elsewhere.
Jewellers
You might think because they deal with jewellery, they would be the first point of contact. However, jewellers often offer trade-ins rather than cash for gold. If you need money, this is not an option for you. However, if you simply want to replace your jewellery and upgrade for (almost) free, this could be the way to go.
Online
Sure, you can try putting your unwanted gold items on websites such as TradeMe, but there is no guarantee anyone will place an offer. Let alone give you what your items are worth. It’s also not the most trusted channel, as you would have to post your items and hope they don’t get damaged on the way.
Gold Dealers
Reputable gold dealers are worthwhile checking out. Simply head into their office or request a free appraisal kit online. This should include a prepaid courier envelope for your items. Make sure the delivery is insured and that you do get reimbursed if anything happens along the way.
The dealer will weigh your items, test them for purity and calculate the best price offer. You are usually offered instant cash or within 24 hours, but you should be given the option of accepting or declining the offer. Make sure you know how long the items are kept before they are melted down in case you change your mind.