Sell Gold Profitably: 6 Tips Before Consulting a Gold Buyer

Gold is a highly profit item right now in the market and the price keeps going up everyday. With scarcity versus high demand, it's now possible to sell gold jewelry, gold coins or any other gold item for a handsome amount. For the first time gold seller who knows nothing about the gold market, here are some golden tips to help get you started.

1) Shop Local Gold Buyers

While so many people aim for online buyers or international deals, sometimes starting at home is the best option. When you sell locally, there is a big chance of getting the best price for your gold jewelry. Local buyers also help in setting the base value for precious metal items, which helps in making sure you don't get undervalued elsewhere.

There are associations, like the National Pawn Brokers Association in the USA, who provide listings for local brokers; this is a fast way to locate a buyer near you and start selling. Or try searching gold buyers in neighboring cities of where you're located. For instance, if you live in southeast Michigan, check out higher income or wealthier cities and towns, such as gold buyers in Bloomington-Birmingham area.

2) Know Your Karats

This is a basic and vital rule in selling gold. The precious metal is weighed by the carat and 24K is the highest you can go with the value of gold. Thus before proceeding to sell to a buyer, first find out the value in Karats of each of your gold item; the more Karats you have, the higher you should get paid. There are plenty of online calculators and tips that will help you determine your Karats too.

3) Don't Mix Karats

Never let your gold items be weighed up together to determine the price for them. Why? A 10K gold ring will not be valued the same as a 20K gold ring. Karat value is always a priority when selling gold, don't let any buyer equate weight with karats as this is erroneous.

4) Confirm the Weighing Scales

This is another loophole gold sellers fail to see and walk away devalued on their precious metal. Selling your gold in pawnshops or jewelry stores is safe since the weights are set by organizations that regulate the standards for weighing gold. However, while selling to a private broker, be keen on how they weigh and price the item; it's possible for your gold to be weighed by the pennyweight but paid by the gram. That is highly inaccurate, so be vigilante.

5) Beware of Rogue "Gold Buyers"

The gold business is a cut throat one, so they will be rogue brokers looking for people to swindle. If you don't get underpaid for the value of your karats, some brokers may disappear with your merchandise without warning. On that note, be wary of dealing with mail-in brokers; you cannot sell your precious jewelry to someone you don't see. Always conduct your business on a one on one basis and the next tip will let you know why.

6) Get the Gold Buyers' Credentials

Meeting the buyer helps you determine if they are licensed by respective authorities to deal in gold in your area. The buyer may also need to check your credentials to ensure you are selling personal items and not licensed goods. So be prepared with your passport, driving license and documentations that prove you own the jewelry e.g, certificate of ownership or authenticity.

There is a big chance of making less or more while trading your gold items, by following the above rules, you will never get swindles or get undercut in the gold buying business.