The years have shown Precious Metals are a sound investment, but to ensure the best return, you need to take care when you’re selling Gold to raise cash. There are several ways you can invest in the yellow metal. You could buy shares in a mining company or purchase futures. Another option you might consider is an exchange-traded fund (EFT). However, while these represent value on paper, they fail to provide the same reassurance as owning the metal in its physical form. Furthermore, these printed alternatives are more vulnerable to market forces that could erode their value or even render them worthless in extreme circumstances. To some extent, the nature of your Precious Metal items will tend to determine how best to sell them.
Tips for Selling Gold Jewellery Items
Today, anything up to 80% of all newly-mined and recycled Gold will be used to make jewellery. In addition to its attractive yellow lustre, the metal’s high malleability makes it an ideal material to create any design a manufacturer can conceive. However, tastes change, and items that were once the height of fashion may lose their appeal. Nevertheless, these items may still command a reasonable price, given that they were probably created when the metal’s spot price was far lower. You could sell your old Jewellery to a pawnbroker, but you would be better advised to deal with a registered dealer in Precious Metals. Either way, several factors will determine the price you receive.
- Fineness: This term defines the purity of your Gold items and is measured in Carats (ct) or Karats (kt), the maximum being 24ct, representing 99,9% purity. Most jewellery items are made from 9, 14, 18 or 22[JS1] ct Gold to avoid damage from daily wear and tear.
- Weight: When combined with its fineness, an item’s weight in grams provides an accurate measure of the Gold it contains.
- Spot Price: The prices of Precious Metals are updated constantly and can be checked in newspapers or online. Spot prices are traditionally expressed in US dollars per Troy ounce or approximately 31,1 grams.
Other factors affecting the sale price are VAT, the prevailing exchange rate and dealer commission. You should also be aware that the markup on your Jewellery items might have been 200 or 300% when you bought them, which could impact your overall profit.
Selling Gold Coins or Bullion Bars
It is much easier to buy and sell Gold in this form. Minted Gold Bullion bars are stamped with their weight and fineness, and Krugerrands contain precisely one Troy ounce of 24ct Gold, so you can apply the latest spot price directly to determine their value. Naturally, your dealer must deduct a small service fee to cover costs and remain profitable, but it should not significantly affect your return.
Mr K is a registered Bullion dealer that also buys Jewellery for recycling or upcycling at competitive prices. It can be traumatic to part with some items, especially if they have sentimental value. We strive to provide exceptional customer service. To that end, we have introduced a 30-day buyback option for those who may have second thoughts after selling their Gold Jewellery. Why not explore our services in more detail?
DISCLAIMER: The information above was derived from reliable sources and deemed accurate at the time of writing. However, changes following publication may have affected its accuracy. Such changes may occur without notice, and Mr K cannot be held liable for inaccuracies in this article’s content or how a reader may choose to interpret it.
