Don’t Get Ripped Off! Know the Value of Your Gold Before Selling

A tight global economy means that people are looking for ways to bring in some extra cash whenever they can. One of the methods for getting some extra money is selling off gold jewelry that has been sitting around for years. Just because you need the money does not mean that you should become a victim. The more that you know about the value of gold, the less your chances of getting ripped off when you go to sell it.

What is a Karat?

Gold Karat

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A karat is a value of measurement assigned to the amount of actual gold in a piece. For example, a 10-karat piece has less real gold in it than a 14-karat piece. It is based on percentages and the actual percentages are:

  • 10-karat is 42 percent pure gold
  • 14-karat is 58 percent pure gold
  • 18-karat is 75 pecent pure gold

The rest of the metals are fillers that have no value. You can purchase testing kits online which will accurately let you know exactly how many karats your jewelry is so that you can get a fair price for it. It will also help you understand how much of it you will actually get if you send it to a refinery.

Know Your Options

Gold Options

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When you are looking to get a fair price on your jewelry, it is always a good idea to gather prices from various sources. This does not mean that you should go to different jewelry stores, it means that you should try different kinds of jewelry buyers to get your pricing. Pawn shops, jewelry stores, online gold buyers, gold buying home parties and refineries are just some of the places where you can get fair prices for all of your gold jewelry.

Separate Your Gold

Gold Treasure

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A gold coin could potentially have more value than a gold necklace, because the coin could have been minted to be worth a value above the value of just the metal. A gold coin that was part of sunken pirate treasure is also going to have more value than a standard gold coin. With more people scouring the oceans for sunken gold, it is not unusual to see gold coins from the 15th and 16th centuries show up in people’s collections. Separate your jewelry and see if the intrinsic value of the piece may exceed the value of the metal.

Get a General Understanding

Understanding Gold

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Before you go shopping for a car, you will spend hours on the Internet trying to determine a fair price for the vehicle you want. You need to use the same process before you head out to sell your jewelry. If you purchase a scale that can help you to weigh your gold in grams and combine that with your karat test, then you can use an online gold calculator to get an idea of what the gold is worth.

That pile of old gold jewelry you have been holding onto could pay your mortgage for a month or even be used as tuition for your child’s education. Before you actually sell your gold, you need to educate yourself on how to get a fair price so that you can avoid being ripped off.

5 Reasons George Soros is Wrong to Sell Gold Now

If you follow gold, you have probably heard of George Soros. Not only is he a billionaire, Soros Fund Management is one of the biggest gold traders around. And you may have heard that in February, 2013 the crazy billionaire sold off over half his shares in the gold EFT, Kinross Gold Corp and Freeport-McMoran. There are many reasons that, as a gold investor, you should not do the same.

Reason #1: He’s Done it Before, and He’ll Do it Again

Soros Sells His Gold

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Maybe Soros is picky. Maybe he is nervous. Or maybe he just has a thing against gold. However, the 2013 purge of gold shares isn’t the first time the billionaire has played this trick. In 2011, he sold off about $800 million worth of gold, gold-related shares and investments.

Reason #2: Gold Prices Fluctuate

Gold Prices Fluctuate

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Let’s be honest, the price that Soros sold his stocks at is a dipping price. Since he sold, the price has started rising again. In fact, many predict that the price will continue to rise. There is a trick to buying and selling gold. You don’t want to sell at the lowest price. Don’t get scared just because you see a dip in the market.

Reason #3: There’s a Reason it’s Called the Gold Standard

The Gold Standard

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Gold has been around for a really long time. Much longer than our paper money, our stock market, or even our current society. So think about it. Do you really, truly think that gold is going anywhere? Not only has this precious metal been used for centuries as currency, it is also used in medical equipment, scientific experiments, artistic works, and more. Companies may come and go; stocks may rise and fall, but gold… well, gold is forever.

Reason #4: It’s Gaining a Global Market

Global Gold Market

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In the United States, there may be less demand for gold jewelry. However, this does not mean that there is less demand throughout the world for gold in general. Other countries are clamoring for jewelry-quality gold. On top of that, there is gold that is used in a variety of other products. Remember, gold is not a local market, it is a world-wide commodity.

Reason #5: Blindly Following Anyone in the Stock Market Game is a Bad Idea

Investment Choices

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Assuming you don’t have millions of dollars to throw around, you probably don’t have the kind of money to make a crappy decision on the stock market and come out unscathed. To be honest, blindly following anyone, even someone who is supposed to be a ‘guru’ in the stock market, is simply stupid. Instead, weigh your options, talk to your financial advisors, and make a well-informed decision. Soros sold his stock to make a quick buck. If you are looking to make a good profit from your gold investment, do so smartly, not by following Soros.

When you invest in gold, you are making a great long-term investment. It is important that you don’t get scared out of the market simply because someone with a prominent name decides they want to sell off some of their shares.

Top 5 Scams to Avoid When Investing in Gold

There is a myriad of scams out there waiting for unsuspecting gold investors. While gold is a solid investment if it’s done correctly and with a reputable firm, investing with a snake oil salesman scares many people away from this profitable venture.

Beware of Gold Scams

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Here are the worst scams occurring in gold investments today, and how investors can spot these scammers in order to avoid them.

Hidden Fees

Gold Hidden Fees

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Often investors are promised fast, large returns on gold investments. Anyone who has invested before will tell you that with large and immediate returns come huge risks. Also, the promise of guaranteed returns sometimes means that the salesman is going to hit you with hidden fees.

Every day there are consumers being swindled into contracts that have concealed fine print stating that large sums of earnings will be considered commission for salesmen. What does this mean for investors? That huge return could be split in half or worse, making it much less sound than a stable investment with a reliable gold firm.

Selling History

Gold Selling History

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Many shady salesmen will try to convince investors that historically significant coins are the way to go, since they have the added sentimental and historical value that bullion lacks. However, these historical coins are often much more costly by weight than bullion, so bullion is the safer investment.

By tricking investors into buying coin investments, these salesmen are taking money out of the pockets of consumers. If you decide to invest in gold, stick to the melt value of gold (meaning its pure value rather than cosmetic importance).

Time Sensitive Investment

Time Sensitive Gold Investment

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 If gold is a safe and long term investment, then why would it be an urgent sell for anyone? Consider this carefully when you hear that a gold investment is ‘time sensitive’ or that ‘time is of the essence’ to make the deal.

Through thorough research and patience investors will find gold that is truly reliable and sound. These quick sales are often a bad idea.

Registration of Seller

Gold Seller Registration

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Before choosing a gold broker, make sure you know who you are dealing with. Check his or her registration with the National Futures Association, and also check the ratings and reviews of other investors. This is an easy way to safeguard investments and ensure reliability.

Has your broker been sanctioned previously for corruption? Be sure about his or her scorecard and you’ll find peace of mind when you finally commit to gold.

Fool’s Gold

Fool's Gold

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If you don’t want to find yourself feeling foolish and confused down the road, then get a deposit slip for your gold investment. While this sounds simple, many who have fallen prey to gold fraud have forgotten this step.

Because you will not be hiding gold bullion in your freezer behind the Hot Pockets, you will be entrusting a reputable depository. Getting a deposit slip to prove your ownership is of vital importance.

Investing in gold for your future and the security of mind that comes from being untied from the inflation of dollars is a good choice. However, investors should be wary of anything that seems too good to be true. Take your time, do the research, and check a company’s or broker’s reviews before committing your finances to gold.