3 Essential Things To Know When Selling Gold

Posted on: 9 March 2023

Selling gold for cash is a new and confusing experience for many people, and it is not uncommon for some to wish they had done a bit more work beforehand in order to properly prepare. If you are thinking about exchanging gold jewelry for cash and want to be adequately informed before you visit a local gold buyer, then take a look below to learn more about just some of the things that are crucial to know before you sell.

Know Your Units

In order to better understand the price set by a gold buyer, it is first necessary to know the price that gold is trading at per troy ounce. Make sure that your gold buyer is also measuring and calculating using troy ounces as their base unit. If they are not, then you will need to double-check all calculations. Keep in mind that one troy ounce is equal to exactly 31.1035 grams, so 100 grams of gold, for example, is the same as 3.21507 troy ounces. If a gold buyer happens to use pennyweights as a unit instead, then remember that one pennyweight is equal to 1.55517 grams. All of this means that while you may need to take your own calculator with you to a gold-buying event, it can easily save you from accepting an unfair markup.

Know Your Karats

Karat is the ratio of gold to other metals in a particular sample. A piece of gold that is designated as 24 karats (or 24k), for example, is one hundred percent gold, while the label 18k signals that a gold piece is 75% "pure." Because of this, two gold pieces of jewelry can have dramatically different values based on their karat level. In turn, you should be careful to never have gold of different karat levels weighed together and assigned a single price.

Know Your Buyer

If you have never done business with a gold buyer before, ask them to provide any relevant government identification and certifications they have. Many trusted buyers also offer simple contracts that stipulate the terms of the sale so that clear expectations are set from the very beginning. If possible, it is wise to compare offers made by one gold buyer to those of another and negotiate within reason. This can tell you more about how a gold jewelry buyer connects with customers, and lead to a lasting business relationship. 

Contact a local gold buyer for more info.