Even if you don't have any solid gold bars, gold coins, or ingots, you can still make a pretty penny out of your gold rings, necklaces, brooches, and even old scrap gold jewelry.
No matter its form, gold is always a great investment as it is one of the most precious metals in the world.
In other words, someone will always be happy to buy your gold jewelry - but that doesn't mean they'll give you good money for it. In fact, rushing to sell your gold jewelry is a sure way to get looted.
That's why before selling any precious metals you have, we recommend learning more about how they work.
For example, what drives global gold prices? What determines the value of gold items? Is it better to sell gold online or in person?
We'll answer these questions and more in this guide. You will also learn:
Definition of spot price, bid price, ask price and premiums
What can affect the price of pure gold and how does it affect you as a seller of gold
The absolute best times to sell gold jewelry
Tips on selling gold jewelry
4 essential terms to know before selling gold jewelry
A word of warning: there is no shortage of scammers and dishonest online gold buyers who want to take advantage of your lack of knowledge about selling gold.
This is why it is important to do your homework before you even attempt to sell gold jewelry.
Here are some key terms related to gold prices that you should familiarize yourself with before moving forward:
Spot price
This is one of the simplest terms related to selling gold. It refers to the current market price of gold, which is determined by supply and demand. The spot price of gold is constantly changing and is usually quoted in US dollars per ounce.
Why do you need to know this if you sell gold jewelry? Because the spot price is used as a reference point for calculating the value of gold jewelry.
For example, if the current spot price of gold is $1,000 per ounce, and you have a bracelet that weighs 10 grams (or 0.32 troy ounces), then your bracelet is worth approximately $320 ((10 grams x 1000) / 31.1).
Imagine if you didn't know the spot price of gold, and someone offered to buy your bracelet for $250. You will leave a lot of money on the table!
offer price
Let's say you want to try to sell gold online. The bid price is the highest price online gold buyers are willing to pay for your gold.
In order to calculate the bid price, gold buyers take into account the spot price of pure gold, as well as the purity of the gold in your lots.
For example, if the spot price of gold is $1,000 per ounce and you have 14 karat (which is 58.3% pure), the bid price for your lot will be $583 per ounce ((1,000 x 0.583)/31.1).
Of course, gold purity is one of the factors that determine the bid price. Other factors include the weight of your gold and current market conditions, all of which are taken into consideration by gold buyers as well.
Ask about the price
The ask price is the lowest price the seller, aka you, is willing to accept for his gold. In other words, it is the opposite of the bid price.
Whether you're selling a gold bracelet, gold watches, heavy gold earrings, or any item, you'll base your asking price on both the current spot prices of gold and how you feel about a fair amount.
For example, let's say the spot price of gold is $1,000 per ounce, and you have a bracelet that weighs 10 grams and weighs 18 karat (which is 75% pure). Depending on these factors, the asking price for your bracelet could be $750 ((10 grams x 1000) / 31.1).
However, it is important to keep in mind that the asking price is only a starting point. You can always negotiate with gold buyers to get a higher price for your gold items.
installments
If you plan to sell your gold, it is important to be aware of the premiums as well. The premium is the amount of money buyers of gold charge over the spot price of gold.
Why is this happening? That's because gold buyers have to cover the costs of smelting and refining the gold jewelry, as well as the fees associated with running their business.
For example, suppose the current spot price of gold is $500 an ounce. The buyer may charge a 5% premium, which would make the total price of your gold $525 per ounce ((500 x 0.05) + 500).
It is also important to note that the premiums can vary depending on the type of gold you are selling. For example, solid gold coins usually have higher premiums than if you were selling gold bars because they are more difficult to melt and refine.
You may be wondering, does this apply to other gold pieces like rings and bracelets?
The answer is yes! Generally, the more complex your item, the higher the premium. That's because it takes more time and effort to melt and polish intricate pieces than just buying gold jewelry.
Of course, this still depends on your agreement with the buyer. Some buyers may be willing to pay a higher premium for your gold jewelry if it is in good condition and they think they can sell it for a profit.
What makes the price of gold go up and down?
Now that you are familiar with the lingo of selling gold, let's talk about the price itself.
The price of gold never stops changing, which means the value of your gold jewelry keeps going up and down as well.
This is why it is so difficult to predict when to sell your gold.
The good news is that understanding what is driving the price of gold can help you make a wise decision about when to sell.
If you're not familiar with the gold market, the terminology surrounding gold prices can be a little confusing at first - but don't worry. We will try to explain it as simply as possible below.
Here are six major factors that affect the price of gold, aka how much money you get when you sell your gold jewelry:
1. Central bank policies can make gold prices fluctuate
Decisions made by central banks - such as the US Federal Reserve, the European Central Bank and the Bank of Japan - can have a significant impact on gold prices, and therefore on the value of your gold coins.
For example, suppose the Federal Reserve raises interest rates. These rates apply to things like mortgages, credit cards, and loans.
As a result of higher interest rates, the value of the US dollar rises. Since gold is priced in dollars, a strong dollar means that the price of gold will go down. So if you sell when the dollar is strong, you will get less money for it.
On the other hand, suppose the Fed cuts interest rates. This makes the dollar weaker, which in turn drives up the price of gold. So if you offer your gold rings and necklaces to an online gold buyer during this time, you can get a higher price for them.
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