3 Things You Should Be Aware of Before You Sell Your Gold

Image by Mateusz Dach via pexels

In Australia today, the price of gold has skyrocketed over the past two decades. It is up 20 percent since 2011 alone, bringing the price to nearly $2,000 per ounce. At these sky-high prices, it makes sense to cash in and sell your gold. But what is the best way to do this?

Firstly, when it comes to selling your gold, you should always do your homework. Don’t be naïve and sell your gold to the first buyer that comes along, especially if they are offering a handsome price. There is a reason why their price may be so high, and when it comes to being a seller of gold it pays to be cynical.

Don’t believe everything you see and hear. The industry these days is reporting that we are experiencing a mini ‘gold-rush’, and that’s their way of saying that there is a huge demand for gold, and selling the precious metal is a lucrative market. However, this kind of mania also attracts attention from some dishonest people, and so when selling your gold, you should keep your wits about you.

Here are some tips to help you maximise your mark-up when doing business with gold buyers:

1) Understand the Measurement System

Gold is sold according to its weight, but jewellers and other brokers use a special measurement called a Troy ounce, which is 31.1 grams. A regular ounce is 28 grams, so make sure you request the weight in grams to make things less confusing.

Something else to be aware of when selling your gold is that some dealers may also use a system called pennyweights to weigh the gold. A pennyweight is equivalent to 1.555 grams and so it’s much simpler to ask them to weigh your gold in grams.

2) Understand Karats

Gold in everyday use is almost always alloyed with another metal, and that because pure gold is too soft, malleable, and heavy to be of practical use. The alloys also give your gold additional colour so it’s a good way of seeing at first glance how pure your gold item is. A karat is identified as 1/24th of pure gold by weight. That means there are 24 karats possible (unlikely that your gold item will be 100% pure), and the number of karats equals the amount of pure gold in the item. So, for example, something that is 18 karats means 18 parts gold with 6 parts of another metal combined.

Once you’re aware of the karat system, keep different pieces of gold with different karat values separate, and ask them to be weighed separately. This is to avoid a dealer weighing all the gold and then paying you the lower price for it. There are several places that offer cash for gold in Australia like Gold Buyers Melbourne so make sure you are receiving the highest price for it.

3) Know the Value

Before selling your gold to anyone you should shop around and get an average value based on various quotes. You can ask local jewellers or pawn shops, also check online for the global standard price. Be aware though, that you are likely to be offered less than the global price because the published standard price is for pure gold bullion only. Unless you are selling gold by the brick then you won’t reach that price; yet, it is still a good indication of the ball park figure for how much you should expect your gold to be worth.

Remember the points discussed above and rest assured you’ll get the best price for your gold.