Be safe: Know what you’re doing before selling gold

Know what you have and choose a reputable firm when selling items.

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By Jessica Garringer, Contributing Writer 6:30 PM Sunday, February 19, 2012

With the price of gold continuing to rise, it is tempting to dust off your old jewelry and cash in. However, with these tempting prices also come a slew of scams. To ensure you stay safe when you sell your gold, follow these four simple tips.

1. Do your research. Before you do anything with your gold, you need to take the time to do your research. According to the Better Business Bureau, knowing the karat of your gold should be your first step. Gold items typically aren’t pure gold, but a mix of gold and other metals. Look for a karat marking on your item to determine how much gold is in it. Typically, gold marked as 10 karat is about 42 percent gold; 14 karat is about 58 percent gold and 18 karat is 75 percent gold. The higher the karat, the more money you will be offered for your gold.

2. Shop locally. Between pawn shops, coin shops, jewelry stores and online retailers, there are numerous outlets to sell gold. However, according to Consumer Reports, local companies pay anywhere from 20 to 40 percent more than the typical online cash-for-gold company. “A local jeweler will pay more for your gold,” said Richard Krauss, president of Ridgewood Jewelers in Springfield. “Plus, you don’t have to pay for shipping or for insurance in case your gold is lost.”

3. Choose reputable businesses. With so many scams out there, know who you are dealing with before you commit to selling your gold. Check with the Better Business Bureau to get a review of the business, along with a list of any complaints against that company. “Find someone you are comfortable with to sell to,” said Krauss. “Beware of buyers who come in for a few days from out of town. Local jewelers will pay you more.”

4. Get the most for your gold. When it comes to selling your gold, don’t just stop at researching one option. Gold prices can vary between companies, so get two to three estimates before committing to any one location. Also, if you feel that your piece may be more valuable than a normal piece (it is a high-end designer piece or an antique) it may be worth more to sell it as-is and not just for the price of the gold it contains. If this is your case, take time to have the item appraised before you rush into selling it. In the long run you may make more money this way.

Ultimately, there are many options out there for you to sell your gold pieces. However, finding a local company may be your best option for getting the biggest bang for your buck. Do your research, be safe and enjoy the rewards that come with this booming gold market.

Jessica Garringer is a bargain hunter, DIYer and a couponer who loves to save money. You can reach her at SaverSavvySavings@gmail.com. Get more money-saving tips, ideas and projects at www.SaverSavvy.com, www.Facebook.com/SaverSavvy or @SaverSavvy on Twitter.

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