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Selling Scrap Gold- How Not to Get Ripped Off

By Edited Oct 27, 2013 0 1

Once you have decided to sell your scrap gold for cash you will want to get your best price and avoid getting ripped off. The truth of the matter is that most companies are reputable, although as you well know, companies are in business to make money with as high of profit margin as possible. Gold buyers are no different, and will seek to pay you as little as possible for the gold they purchase from you. Protect yourself and learn how to get the best price before you sell.


What is Scrap Gold Anyway?

Scrap gold theoretically is any gold that has already been processed into a usable piece, but denotes something unwanted, unused, or used and broken. How unwanted the piece is or how unused is up to you to determine.



You can find gold to sell for scrap from bent, broken or unused jewelry, earrings, necklaces, pendants, antique jewelry, estate jewelry, Swiss watches, class rings, brooches or pins, dental gold, dental crowns, collectibles and coins.


Which Gold has Value?

10k, 14k, 16k 18k, 22k 24k gold, gold pieces, and gold jewelry all have cash value and can be sold to gold dealers. Costume and gold plated pieces have no value to refineries.


What to Know About Selling Gold

In order to determine what your gold is worth, you should check the daily financials for current gold prices. The price of gold, like other commodities, fluctuates greatly from day to day. Get the current quotes in both ounces and grams. Avoid any dealer that quotes in pennyweight/DWT.


Dealers make their money off the spread between the current gold price and what they offer you for your used gold pieces. A reputable dealer should offer at least 80% of the spot price. Some dealers will offer as little as 60-70%, so check around.


Gold refiners cut out the middlemen (gold dealers) and will usually offer you over 80% of the spot price. A good offer is around 85% of the spot value and one worth seriously considering.


Make sure that the dealer will insure your gold during shipping for both directions if you are not sure that you will sell your gold to them. You do not want to lose the value of your items if your package is lost in the mail. Reputable dealers will ensure both ways, and insurance of items in both transits is standard practice in the industry.


Once you receive the companies offer, you are not obligated to take it until you cash their check or have the money deposited into your bank account. You should avoid the direct deposit option for this reason. With a paper check, you still have the option to have your items returned to you if you change your mind or do not like the offer. Read the policies carefully before selecting a dealer or refiner if you are not certain that you will not want your items returned to you.


Most importantly, check the Better Business Bureau report for complaints against all companies you are considering before you send your items to them. If in doubt do your due diligence.


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Comments

Mar 11, 2010 9:31pm
wrufian
I agree with the doing some good reasearch first. I googled "Vancouver Gold Buyers" and found a company that had good reviews, easy to get to location and pretty good prices with no fees. You just have to search around!
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