Gold prices have certainly plunged in recent weeks. However, they are higher than they were a year ago, and some people are tempted by those ads encouraging you to raid the jewelry box and sell your gold. Unfortunately, you may find that what you have isn’t worth as much as you paid. Here are some things to keep in mind about selling your gold jewelry:
Markups on jewelry are even higher than those on furniture. We’re talking about a markup of as little as 200% and as much as 1,000%. That’s why you can get some great “deals” on 75% and 80% off sales at some stores. With the high markups, the jewelers are still seeing profits, even when they slash the retail price. You may have paid $5,000 for that piece of jewelry, but when it is weighed out and valued by the ounce — even at the prices around $800 an ounce — you’ll find that you might not even get half of what you paid.
Buyers should be properly accredited and licensed. You want to check this — especially with mail order companies that you see advertised on TV and in mailers. It might be best to check around town to see if anyone buys jewelery. Try to deal only with those who belong to a reputable society, such as the International Precious Metals Institute or the Jewelers Vigilance Committee.
Also, shop around. Check with pawn shops as well as gold buyers. Additionally, see about selling your piece in the Classifieds. You might find that you get closer to what you paid for an item when you sell it to a regular buyer who likes it for how it looks, rather than someone who plans to met it down and buys by the ounce.
Do you have experience selling gold jewelry?