For ages, gold has been one of the most preferred investment options in almost every country and culture across the globe. It is also one of the most favored metals for making jewellery in different styles and designs. Being one of the most precious metals found on Earth, gold investment always promises great returns. Gold jewellery is not only seen as a great style accessory but also as a way for people to secure their financial future. The high liquidity of gold jewellery makes it extremely easy for people to exchange their gold jewellery for cash with a high profitability margin. Hence, it is not surprising that when people need some extra cash, they often choose to sell gold jewellery.
Factors To Consider While Selling Gold Jewellery
Selling old gold jewellery is not just about visiting the nearest jewellery shop and getting cash worth its value. There are several important factors that people need to consider before they sell their used gold jewellery to get the best deals. The most important of these factors include the following.
Learn About The Price
The price of gold constantly changes and this can impact the value of old gold jewellery being sold quite significantly. To avoid getting cheated, sellers should verify the trading price of the gold before talking to any gold buyers. “It is equally important to understand that the buyers may offer a price that is slightly lesser than the trading rate. However, being aware of gold’s spot price in Australian dollars minimizes the risk of an unfair deal.”, Gagandeep Gambhir, owner of Cash Your Gold, the best gold buyers in Brisbane was quoted saying.
Verify The Purity Of The Gold
Most gold jewellery is not made from 100% pure metal and has some added impurities in the form of other metals. This is because pure gold is highly malleable and has an extremely low breaking point. This makes it almost impossible to create durable jewellery items using 100% pure gold also known as 24-carat gold. In general, the gold content in jewellery made from this precious metal varies between 18 and 22-carat. So verifying the level of purity of gold is important to get the right price for any old jewellery being sold.
Presence of Gemstones
Buyers purchasing old gold jewellery make sure to check the overall weight of each item. It is quite common for people to buy gold jewellery studded with different types of gemstones. However, when it comes to selling these pieces of jewellery, most buyers offer the value of only the gold part even when they weigh the entire piece. So it is advisable to get the gemstones separately evaluated or request to get them back before finalizing the deal. It is also advisable to check the weight of the gold after removing the gemstones to get the best value for the jewellery.
Consider The Buyer’s Share
Most buyers offer to purchase the gold at a slightly lesser price than the calculated market value of the jewellery. The calculated market value depends on the current spot price, the purity level, and the weight of the gold jewellery. The buyers then deduct a percentage of the calculated value to pay for the refining costs and other overheads. The percentage deducted varies from buyer to buyer and can range anywhere from 25% to 50% of the calculated cost of the jewellery. This makes it even more important for sellers to choose the buyers for their old gold jewellery with care and after proper research.
Best Ways To Sell Old Gold Jewellery
Having learned about the important factors to consider while selling old gold jewellery, it is time to learn about the best ways to do so. Some best ways to sell used gold jewellery and get a fair deal are explained briefly as follows.
Look For a Reliable Company
Buying gold in Australia is subject to the State and Territory Law of the country. This means that businesses or individuals need to have a Second-Hand Dealers License to purchase any used gold jewellery. It is also important to learn about the years of experience of the buyers in the gold business and their market reputation before dealing with them.
Talk To Auction Houses
For people intending to sell used gold jewellery that has been passed on as family heirlooms across generations, seeking the assistance of auction houses might be the best choice. While selling jewellery through auction houses might take significantly longer, it can ensure a far better resale value depending on the age and design of the jewellery.
Choose To Trade Online
Another effective way to sell old gold jewellery is by trading it online. Sellers should first verify the authenticity of the online portal facilitating the trade. They also need to make sure that the portal has valid operating documents for buying and selling gold in Australia before opting for the same.
Trading off old gold jewellery requires sellers to exercise caution and do ample research to avoid being duped and getting the best deal.