What do Cash for Gold Stores Pay?

October 25, 2015 by  
Filed under New, Spotlight

What do Cash for Gold Stores Pay

One thing that comes up from time to time is gold jewelry.
And what do cash for gold stores pay for the pieces brought in.

If you’ve been reading along with some of my other articles you probably have some interest in treasure hunting . You may have come across a (valuable) piece of jewelry at a storage auction, estate sale or maybe while metal detecting. The day may subsequently come when you decide to sell your found treasure.

And when that time does come I always opt for the slow route which includes thorough research prior to listing it online. But for those in a hurry to sell, jewelry and gold jewelry in particular, you may be wondering just what do cash for gold stores pay.

“Let’s peel back the layers to explore the question what do cash for gold stores pay?”

Individual gold dealers pay out amounts based on different percentages but it’s still calculated on the original value or spot price – I’ll come back to gold spot price in just a minute.

Okay, you’ve found yourself a beautiful piece of gold jewelry. It’s time to learn a little about it before you go anywhere. First you need to look for the gold mark or stamp.

It’s a tiny impression or indent usually placed somewhere not easily noticed – inside the band for example. You’ll probably need a jeweler’s loupe for this or at least a magnifying glass.

For example, let’s say you have a ring and the stamp indicates it’s 14k. With a stone may require some guess work as to the weight, unless you don’t mind prying out the stone.

If you hope to sell this ring for its intrinsic value you want to keep it as pristine as possible.

This is important if the ring has any type of stone. The only way to know the true gold weight is to remove the stone.
If you have a digital scale you can weigh what you have.

This is a starting point but keep in mind your digital scale is probably set for 28 grams per ounce. The gold dealer’s scale is measuring in Troy ounces which are 31.1 grams per ounce. It may be worth picking up a small (Troy) digital scale on EBAY if you plan on doing this often.

To make things even more confusing the dealer may use the pennyweights system (DWT) A pennyweight is 1.555 grams. This is important to be aware of because it’s possible to have a less-than-honest dealer weigh your gold in pennyweights and pay you out by the gram. Which means less money for you.

So in straight talk, exactly what do cash for gold stores pay?

If you listen only to the hype you may be surprised.Remember we said your ring was 14k (14 karats). One karat equals one part : twenty four parts of pure gold. Or, ONE KARAT = 1/24 Pure Gold. Always keep in mind that 24k indicates pure gold. That number 14 indicates the purity ratio of your jewelry.

So 14k means it’s fourteen parts gold + ten parts added metals (for a total of twenty four parts). The reasons for the added metals are for color and durability. It’s important to note because it lessens the overall value.

Now we need the spot price of gold.
This is the price at any given moment in time for 24k. I use www.goldprice.org for this. This is a live price website.

I’ll also include the chart in this article. I’ll give you a quick formula as well – it’s handy to know.

Let’s assume a search for the current spot price comes back with $1000 per ounce. Your formula would look like this.. $1000 / 31.1 (ounce price divided by grams). This means your gram price is $32.15 for 24k pure gold. If your ring was 24k it would be easy to find the value. Just weigh the ring and multiply the gram weight by $32.15.

But your ring is 14k ring. So since 14k represents 58 % of 24k, you now multiply the 32.15 spot price times 58% to get the value of your 14k gram. Which is $18.65 per gram.

We’ve seen the signs and heard the ads shouting – cash for your old gold.
Seems every dealer wants your old gold. But what they don’t mention is that they pay only a fraction of it’s worth.

Let’s look at an example. The ring you weigh turns out to be ten grams. At $18.65 you have a gold value of $186.50.
But the dealer also needs to make a profit. They may pay out 60 per cent on that figure which is the melt price. So your $186.50 may only return $99.30. And they may pay even less. I’ve heard some pay out only 30 – 40 per cent of the spot price.

So what can you do?
The most obvious answer is to shop around. But also educate yourself as to what you have. Know the karat of each piece. If you can purchase a scale then do so.

If you are going to take several pieces in to be weighed make sure to separate the karat weights.

What do cash for gold stores pay might not even be a consideration if the piece of jewelry has intrinsic value. If it’s exceptional looking or a designer piece then maybe selling it yourself is the way to go.

Yes it will require research and yes it is slower but it’s also much more profitable. If you don’t think you’re up to it you might want to consider a consignment sale agreement through a trusted dealer of vintage or fine jewelry.

Best of luck and collect well.

Peter
SmokinMonkey.com

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