I have a few pieces of jewelry that I don't wear any more that I would like to sell and figured with gold prices up, now would be a good time. There are several shops in my area that advertise "We Buy Gold". Would I get more from one of these shops or should I check pawn shops and coin shops. I just want to know that I am not getting a good value on my items. Anyone here have any experience in buying/selling gold? All advice is welcome.
Need advice on selling gold
- Thread starter Hai5
- Start date
Do not sell jewelry to a gold buyer.
They are buying purely on weight and purity, whereas jewelry has value due to the design and workmanship.
A pawn shop is just as bad.
Put an ad in the paper, or see if you can find a reputable Jeweler who would sell your stuff on consignment.
E-Bay might be another option.
Any of these would fetch you more than you would get at a gold buyer or pawn shop.
They are buying purely on weight and purity, whereas jewelry has value due to the design and workmanship.
A pawn shop is just as bad.
Put an ad in the paper, or see if you can find a reputable Jeweler who would sell your stuff on consignment.
E-Bay might be another option.
Any of these would fetch you more than you would get at a gold buyer or pawn shop.
B
buyandhold2018
If your selling as scrap... meaning it will get melted down, the high end of what you will get is 80-85% of scrap.
Currently, you are looking at 20-22$ per gram for 14K and $25-27 per gram for 18K.
It's better to weigh your gold before taking it to a "We buy Gold" type place... sometimes their scales don't measure perfectly
Currently, you are looking at 20-22$ per gram for 14K and $25-27 per gram for 18K.
It's better to weigh your gold before taking it to a "We buy Gold" type place... sometimes their scales don't measure perfectly
- Thread starter
- #4
Thanks for the advise guys. I didn't think about consignment, i am going to look into that, as the jewelry is in good condition and wearable. Can you tell me more about consignment sales. Does it work on percentage or flat rate? What is a good rate/percentage?
14 Karat Gold is 58.33 % gold. Gram price=Gold price/ 31.1035 X .583.
10 Karat Gold is 41.67 % gold. Gram price=Gold price/ 31.1035 X .416.
However, the dealer can't give you this price and he'll start at 50% of this. Of course, with the gold market tending upwards, you could do better.
Gold is hot now, but a dealer knows that a market could crash any day.
Phil is right, if it's good workmanship, then you may be able to get jewelry value, which is better. However, be extremely careful in dealing with the general public as you can get knocked on the head, and your gold stolen.
10 Karat Gold is 41.67 % gold. Gram price=Gold price/ 31.1035 X .416.
However, the dealer can't give you this price and he'll start at 50% of this. Of course, with the gold market tending upwards, you could do better.
Gold is hot now, but a dealer knows that a market could crash any day.
Phil is right, if it's good workmanship, then you may be able to get jewelry value, which is better. However, be extremely careful in dealing with the general public as you can get knocked on the head, and your gold stolen.
Most places that do consignment do percentage, which is good for you, because the more they can sell it for, the more you get.
A flat rate consignment only needs to be sold at above the flat rate price to make money for the seller.
The problem with consignment is the guy selling it won't do it for free and often times they can take up to 50% of the selling price and your talking used jewelry to begin with. Either way considering the cost of gold these days you will be taken to the cleaners.
I highly recommend that you don't try to sell your gold at the cleaners!
You can find consigners fees ranging from 80/20 (you/them) to 50/50, and the "norm" is usually around 60/40.
As with anything financially related - shop around.
The higher the value of the piece you are selling, the more likely you can get a better split in your favor.
There is a Huge Jewelry Consignment Company in Atlanta named Ross that offers a standard 70/30 split, but I have no information on their reputation or reliability other than having talked about them with a friend who lives near Atlanta.
You can find consigners fees ranging from 80/20 (you/them) to 50/50, and the "norm" is usually around 60/40.
As with anything financially related - shop around.
The higher the value of the piece you are selling, the more likely you can get a better split in your favor.
There is a Huge Jewelry Consignment Company in Atlanta named Ross that offers a standard 70/30 split, but I have no information on their reputation or reliability other than having talked about them with a friend who lives near Atlanta.
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The danger is that the consignment operator is at least as interested in rapid turnover as absolute profit on any one given transaction. To him it's dollars per day, no just dollars. Also, not only does his income depend equally on price and turnover, but he will lose customers if his stock isn't fresh.
Lets take an example where the consignment operator gets 20%. You might want to make 80% of a $100 selling price (that's $80) and be willing to wait a month, but the consignment operator is better off making 20% of a $50 selling price (that's $10) in a week (for example) since he can turn that money over into another transaction and repeat ad infinitum. He can't run a business where the same stuff just sits in the display case month after month.
Bottom line, you need to settle on a minimum price ahead of time.
EDIT: Oops! forgot to finish up the math. Two cases, both presuming we are super experts at pricing jewelry:
- The price is held at $100 and the item does indeed sell in exactly one month. You get $80 and the dealer gets $20.
- The dealer accepts a $50 offer after one week. Repeat 4 time over a month's period. You get $40 and the dealer gets $40. You (and three other people) got half of what you wanted and the dealer got twice what you expected him to get.
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Sound advice.
- Thread starter
- #11
This is all great advise guys.
. I have never really sold/pawned anything (I've bought a lot though) so your feedback is greatly appreciated. I am going to call a few jewelers around town and see what their consignment policies are, and go from there.
. I have never really sold/pawned anything (I've bought a lot though) so your feedback is greatly appreciated. I am going to call a few jewelers around town and see what their consignment policies are, and go from there.
How much gold are we talking about? If it's enough to make it worth your while, you may want to do some legwork with the goldbuyers first ... go to a couple of the more reputable ones and ask "how much would you give me for (thud of pirate's chest on countertop) this?" ... no intention of actually selling, but if the guy will give you $2500, you now have a basement price to work with ... and if the consgnment guy will get you $2000 ... or $3000 ... either way your choice is clear.
If we are talking about a couple hundred bucks, we may be overthinking this.
If we are talking about a couple hundred bucks, we may be overthinking this.
