Selling Your Gold
HOW TO SELL YOUR GOLD AND NOT GET RIPPED OFF
OKAY, enough hype. If you want to sell gold listen to a pawnbroker, follow these steps and you will do well. Although this info isn’t secret it is hard to come by easily. Mis-information is one of the basic keys to ripping you off. We are going to base this lesson on a real example stay alert.
Gold closed today at $1127.80 per TROY ounce. Gold is based on the TROY system 12 TROY ounces per pound not 16 like most everything else. Gold can be purchased using 3 weight systems, troy ounces, penny-weight (dwt) or grams. 1 ounce = 20 penny weight = 31.1 grams. So doing the math with today’s price, 1-ounce of 24k gold = $56.39/dwt or $36.26/gram.
GOLD PURITY KARAT SYSTEM:
- 24k is pure
- 18K is 18/24 or 75% pure
- 14K is 14/24 or 58% pure
- 10k is 10k/24 or 42% pure
IMPORTANT! Anyone buying gold from you should have a second hand dealer license or a pawnbrokers license. Licensed buyers have to provide the state with a bond and have an extensive background check. They also have to use LEGAL FOR TRADE SCALES and dealing with a licensed buyer makes it more likely you will not be ripped off.
Pawnbrokers also have to provide the police with a copy of every single transaction every night. Then I have to hold the gold for 30 days until I can sell it, taking the chance that gold goes down in price. There is a huge expense to starting and maintaining a pawn shop. I would never risk my license and my likelihood for a $40 ring, one because I’m an honest guy and two, it’s just not worth it.
Please hear this next statement. Anyone buying gold and taking these risks should make a profit, but how much is always negotiable. When you bring your items to the buyer make sure they weigh the items separately. Make sure they test each item and show you how they are testing it. Do not let them rush you or give you anything but the exact price. Finally when the weighing is done hand them a nickel make sure you can see the scale it should read very close to 5-grams or 3.2 pennyweight. If not thank them and get your material and go.
So how much should you get? Well that is the negotiable part, a good price would be between 80%-90% of today’s gold price (what I would pay you). So lets say you found an honest pawnbroker who would give you 90% of the daily spot price, today that would be $1127.80 an ounce of pure gold (or 31.1 grams). Almost all jewelry is not pure gold so here is how jewelry would be priced:
18k = $1127.80 (spot price) * (0.75 purity of gold) * (.90 buyers profit) = $24.48 per gram
14k = $1127.80 (spot price) * (0.58 purity of gold) * (.90 buyers profit) = $19.03 per gram
1kK = $1127.80 (spot price) * (0.42 purity of gold) * (.90 buyers profit) = $13.60 per gram
An average mans wedding ring weighs 3 grams so
18k ring about $75
14k ring about $55-$60
10k ring about $40
Chances are that you have been getting quotes and prices much lower than that and some people make it very hard to know if you are getting a fair price. I hope this helps you make better decisions. If I can help more let me know.