Gold may be among the most valuable gold pieces in the jewelry industry next to gemstones. That’s why many jewelry owners know that they can easily sell gold at any time. Of course, the goal is to get as much profit from your jewelry as possible.

However, selling gold jewelry is not as easy as it seems. Even though how to sell gold jewelry seems like something you can do using common sense, there’s a lot more intricacy to accomplishing this.

How to Buy and Sell Gold Jewelry

Before you start pawning off your valuables left and right, consider some of the burning questions that even veteran jewelry collectors keep in mind. Rather than thinking of diamonds similar to stock investments, the movement of the jewelry market may surprise you.

While some new stocks may enter the industry and take it by storm, gold has held its value despite fluctuations in the market. Because of this, many gold jewelry owners can either be at an advantage or disadvantage, depending on how they acquired the gold and what they plan to do with it.

Check in with experts’ thoughts on the most basic things you should know when buying and selling gold.

What is the Best Way to Sell Gold?

Perhaps the first question that many individuals ask is this. One may be naturally curious with what they need to do to sell their gold at the best price and place possible. The latter section will discuss the different channels to sell gold. What you should keep in mind is that each shop or store has its pros and cons, most of which may be influenced by your lifestyle.

How much can you sell gold for?

It’s easy to think that there should be one gold price, since gold is gold, right? However, the industry is much more complex than this. It also depends on what kind of gold you have. Some may invest in gold bullions, which can be bought via a dealer or collector. They can be harder to sell at full price, especially for quick cash. Others may have gold jewelry, which may be highly dependent on the appraisal and market trend for higher or lower prices.

Who pays the most for gold?

The answer to this question may depend more on your definition of “the most.” Though you would technically want to go with the shop that pays the most amount of money, you may also want to consider other resources involved. Driving from one consignment or auction shop to another should be considered an expense. Even though they may pay higher, having convenient access to a nearby pawnshop may be better. Consider your time, resources, and effort to have some monetary equivalent.

Is selling your gold worth it?

Given these factors, you may be thinking twice if this is the route for you. There seems to be a lot of factors to consider before embarking in gold selling. But this reflects the importance and stability of the market. Even with changing trends in jewelry, the industry remains strong and many newcomers still want in on the field.

Where To Sell Your Gold Jewelry

Sometimes, finding the best deal is not always that easy to do or to accomplish if you do not know the right place to sell them. Start by checking what’s accessible to you, and what you observe to be a common way for those in the area to buy their jewelry. Some channels work better than others, depending on location and trend. It’s these little things that can help you get started.

Pawnshops

Whether you are a traditional jewelry collector or one who wants to try buying a reasonably priced secondhand jewelry for your first piece, pawnshops may be a familiar alley.

However, you may want to practice caution. Even though pawnshops still operate well these days, they remain notorious for a lopsided buying and selling fees. Pawnshops tend to buy jewelry of high value but at a low price. Then they resell the jewelry with a much higher price tag. Sometimes, the owners will try to buy it back, but they will definitely need to buy it back at a higher price.

Pawnshops may be your best bet if you are looking to clear out your jewelry box in a short span of time. They are also far more convenient and accessible, as you may have your local pawnshop or a quick drive around can give you other options.

For those who have just started collecting jewelry and are looking to experiment on how to sell gold jewelry, be discerning about pawnshops. For starters, it’s more likely that you will have to sell your gold jewelry short, as they need to be resold to another customer. And while this may not be common practice, people who are not as knowledgeable about their diamonds and gold may end up selling their fine jewelry for far lower than its actual value.

Before embarking on this buying and selling experience, familiarize yourself with the necessary aspects of the trade. Knowing the 4Cs, being in-the-know with the trends for preferred diamond shapes, and having an idea of what kind of setting makes a difference in the industry can help you get started.

Consignments

Being given hand-me-down heirloom jewelry pieces can be a tricky thing. For some, jewelry is jewelry, so it’s something that they see as additions to their collections. Others who may look at jewelry as investments may wonder: what do I do with antique jewelry?

Consignment stores tend to offer deals that may be more beneficial to the jewelry owner. You may make certain arrangements, especially for finished antique pieces. However, note that working with consignment shops means you will run some fees from sales. For every sold jewelry piece, you’ll have to give a fraction of the cost to the consignment shop owner.

Depending on how good the deal is, you can save on this selling method. Just make sure you get the best deal and go with the best and most reputable consignment shop.

Auction sites

Another answer to the question, how to sell gold jewelry online is through auction sites. More shops have started migrating or integrating an online component in their operations. Thus, you may find more reasons and ways to access online customers through auctions.

Experts Say: What You Need to Keep in Mind

If it’s your first time diving into gold jewelry buying and selling, you may want to look at those who have experience before you dive in. Experts tend to know the ins and outs of the industry. Even in a relatively stable industry like gold and jewelry, new trends may arise. It’s good to keep up-to-speed with these essential concerns, so you know how to approach the market confidently.

Appraisal is important

Before going to any jewelry store, have gold appraised by another party. Unless you know your way around gold, you may get a lower appraisal, especially if you have it done by the person who will also buy it from you.

When you have your gold measured, don’t lump together gold with different karat values. Similar to diamonds and their respective carat weights, each one bears differently for price points. Experts know that if you lump together gold of different karats, there’s a big chance you will get paid for the lowest one after weighing. This highly affects how much do you get when you sell gold jewelry.

Certification may also work in your favor, especially for gold jewelry. Not all gold jewelry are created equal, and sometimes, proper paperwork may be the only way to prove it. When you have proof stating that you have the prized 10K, 14K, or 18K gold, then you may have better chances of selling these gold jewelry.

Know the market and consumers

Aside from knowing the price of your gold jewelry, you should also know the price of gold in general. There are many sites that you can access for checking and cross-checking recent gold prices. Knowing the reference price points lets you estimate how much to expect as you sell off your gold pieces.

It’s also good to know how consumers think. If you’re selling finished jewelry, you may see better outcomes for pieces that are in the current style. Classics never go out of style, but sometimes, certain trends can affect how the market receives them. A gold jewelry piece featuring a pave-style setting may seem like a less classic option. But if a popular celebrity gets his or her engagement ring in the same shape, you might see some boom in interest. This may be the best time to sell off that jewelry piece.

Knowing the trends can also help you to decide if you should sell your gold jewelry as is. Some collectors assume that they need to melt their gold to sell it. While that works for some jewelry types, finished pieces that adhere to the trends may be better sold as is. Always keep an eye out in the market.

Have safety nets

Every business and investment comes with a risk. With gold jewelry buying and selling, the risk may increase exponentially because you are handling a very valuable commodity. As a seller, it’s best to look into reimbursement policies. This goes for those who would choose mail services. Regardless if the store is a certified and favorite, it pays to cover all your bases.

Include insurance in the list of things to look out for. When a jewelry piece is already out of your hands and it gets lost, you should have some contingency if something goes awry. The last thing you want is to have an empty jewelry box and an empty wallet at the same time.

Have a realistic timeline

Unlike food, where freshness and expiration dates take precedence in the buying process, gold may not easily move shelves.

Also, even if it’s gold, there’s a big chance you won’t hit a goldmine with this endeavor. If anything, experts note that first time gold sellers should temper expectations. Apart from the amount of time you’d spend selling your gold, you should also consider the cut that any middleman or shop you’ll access for selling your jewelry piece.

Selling after the pandemic

As the COVID-19 pandemic hit individuals in different ways, you may also consider how it will affect the market. Reports say that more jewelry collectors have started looking into selling their gold. Some people sell their gold to get more spending money. Others may be looking at other possibilities, given the changing times.

One thing’s for certain: more gold in the market means more options for buyers. Even though gold does not fluctuate with supply, more options mean more competition for the gold you’re selling. If you happen to be selling quite an expensive piece of fine jewelry, your offer may not be the first thing that customers may snap up.

It may also affect how you can bargain for pricing. A more lopsided supply may mean fewer gold buyers willing to take a chance in buying gold.

Want to know more about buying jewelry? Start with the basics by reading “Buy It Now! What’s the Best Time To Buy A Diamond?”