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The gold market is hot right now, and many people are taking advantage of high prices to make some extra money. People are selling gold jewelry, old watches, class rings and even gold fillings. However, many people are making crucial mistakes that can cost them hundreds of dollars. The four most common mistakes are generally made because people are in a hurry to sell their gold. Rushing into things is not a good idea when so much money hinges on selling gold the right way.
1. People don’t bother to see what their gold is actually worth. You won’t get the same price for your gold that it is listed at in financial reports, but you should get at least 70 percent of the listed price of scrap gold on the open market. Take the time to check out some Web sites and do a bit of research. You can take your gold into any reputable jewelry store and ask them to weigh it for you so that you can calculate the price you might get per ounce.
2. People try to take short cuts. It’s tempting to run to the nearest pawn shop to sell your gold, but you’ll lose a good deal of money this way. Pawn shops are turning a profit by reselling your gold jewelry to other people who are looking for bargains. The pawn dealer will offer you the lowest price he can to maximize his profits. If he is buying scrap gold, he will need to resell it to a refiner for a mark-up, so he has to give you a low price for your gold to make money.
You may be surprised to know that selling gold has become popular on the Internet and for good reason. A reputable gold buyer can send you a mailer, get your gold and send you a check in less than two weeks. It’s generally worth it to wait two weeks; you could get hundreds of dollars more for your gold on the Internet. When the check arrives you’ll be glad you didn’t rush into selling your gold cheaply.
3. People don’t shop around. Selling gold to the first buyer you find on the Internet is a bad idea. The prices being offered can vary widely so compare at least three companies; they should post their current rates clearly on their Web site. Don’t forget to check each company’s reputation with the Better Business Bureau and reviewers’ Web sites as well. The time to find out if a particular gold buyer is a shady outfit with a bad reputation is before you send them your precious gold.
4. Many people are selling gold to gold dealers, not refineries. Just like a pawn shop, a gold dealer has to give you a lower offer for your gold because they then resell it to a refinery. Selling gold to a refinery means you’ll get top dollar. They should offer just 10-15 percent below market value because their profits come primarily from what they earn on the other end – after they’ve refined the gold. With no middleman to pay, refineries pass the savings on to you in the form of higher offers for your gold.
Don’t make a mistake that you’ll regret later. Do your homework and look for a reputable refinery that buys gold directly from consumers. If you do, you’ll be selling your gold for the best price possible.
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