Monday, 04 March 2013 05:21 Last Updated on Monday, 04 March 2013 05:59
A Guide for Gold Buyers while Selling Gold
There are some lingering questions that keep coming to your mind when you sell gold. Selling jewellery can be easy if you keep a few things in mind. You can do it the right way if you begin by asking a few simple questions. Here are a few suggestions that may help you:
1. The first thing you should ask yourself is why you really want to sell your gold? If the gold you plan on selling is old and used, then selling it makes sense. If it has an emotional value or is an heirloom, and you are in need of the money for financial reasons, then you should think twice about which place you choose to sell your jewellery. Many retailers pay a fraction of the actual price. So when choosing a supplier, pick one that will treat you fairly.
2. Are you selling estate jewellery? This is a critical question you should be asking yourself. Estate jewellery is typically one that is old gold jewellery that is passed down from family members. The problem is many times you might not find a good buyer for such items who will give you the fair value.
3. Are you prepared to sell on consignment? Such a question arises when you give up jewellery to your buyer and wait for cash. Selling on consignment is a common practice among gold dealers across the world. The fact remains when you sell your gold to a buyer, the jeweler keeps and sells the item to the public at a reduced price. Only after he sells it, the gold dealer will pay you a much lower price, keeping his margins high. This practice may not suit your needs and generally will leave you at the short end of the stick
4. Do you know the 3 cardinal questions while selling gold? Start by asking if you know the purity of your item. Do you know what the carat is in your scrap gold? Do you know how much it weighs (especially in grams)? Reputable buyers will always buy gold or gold coins that is evaluated and done in a fair manner. Always avoid confusion by asking your buyer to measure the jewellery in front of you. The next question that pops up is whether you know the market price per gram for each piece of jewellery you are selling?
5. What do you do to the gemstones or diamonds when they are part of the gold item you are planning to sell? Colored stones rarely have a value after sale. They can lose their shine and may suffer wear and tear unlike gold and appear of no value to the buyer. Reputable jewelers may remove these stones and return them to you while measuring up the gold. This is a fair practice and a nominal fee is charged for the stone removal. Although the removal can be done at the request of the seller, most of the time reputable buyers pay only for the gold. On the other hand, diamonds have a separate fate. They might arouse interest from the buyer if they are part of the item. You may receive the wholesale price of the diamond and a lower margin for the gold.
As a seller, you should ask the right questions before you sell you gold. You should demand the gold items to be weighed, analyzed and paid for in front of you. If any of these things prove to be an uncomfortable task, then be ready to walk away and choose a different buyer! Doing these transactions the right way will make sure you are dealing with honest and reputable buyers who will treat you fairly.