When a local jewelry shop goes out of business, the first thing most regulars to that shop does is buy a lot of gold jewelry or 1 oz gold coins for sale to resell on sites like eBay, Amazon, or Alibaba. To know how these websites work, and which of them pays the most, a simple experiment can tell you the answer: sent identical gold bands to these sites and saw how they respond.
A couple of websites might offer you good deals, but some will get you frustrated or even underwhelmed. Problems like lost items, buyers, won’t send back the item when requested or offers a ridiculously low price. The experience by the sellers emphasizes the difficulty of finding a good deal when you are selling jewelry.
And as the price rises, so do the number of people complaining about gold, silver, and other precious metals dealers. BBB or the Better Business Bureau reported that at least 500 complaints were made against gold, platinum and silver dealers in 2010 alone, a figure that can easily double or even tripled in the next few years. A lot of complaints involve prices that are different from what is advertised. Other buyers say that they did not receive any check for the mailed pieces, nor did they get their items back.
To figure the value
If you needed cash, what is the best way to sell gold jewelry? Unless you know trusted people willing to buy it, like a local shop, you need to figure out how much your jewelry cost before you sell it. That is based on the weight of the gold and purity. It is not hard to calculate the price if you know how much it weighs and how many karats it has.
To know your jewelry’s weight, you can use a standard kitchen scale, see if your local post office will let you use their weighing scale, or ask the help of a trusted jeweler. It can be measured in different ways, A universal scale used in the United States weighs 28 grams an ounce, while most jewelers use Troy ounces, both are made up to 31.1 grams.
Not only that, a lot of dealers uses pennyweights which is equivalent to 1.56 grams. The purity of the jewelry should be engraved somewhere on the item. It won’t be 24-karat, which is too soft to be jewelry because 24-karat is too thin. But you will see markings like 12k, which means it is 50% pure, 18k means 75%, so on and so forth.
Most gold pieces have no markings, but if you use a scratch test, it can reveal how much purity your jewelry has. You need to buy a scratch test kit, it costs at least $30 online, usually on Amazon, eBay or Alibaba. You can also take it to your nearest jeweler.
You can compute by yourself to know the value of the gold in your jewelry; it is also called the melt value. But the best way to see the melt value is to use an online calculator that accepts different types of purity and weight measures. Current gold prices are available on online sites like GoldPrice.org.
(Want to know how to check the purity of a substance? Click here.)
Most sellers send their jewelry to cash-for-gold places using certified couriers. What will happen is that dealers will inspect your items and tells you how much they are willing to pay. You can then choose whether you accept the offer or not. Of course, there are certain exceptions.
Some outfits will send you checks directly. In case you reject the offer or the check they send you, the dealer will then mail the item back to you (you will cover the shipping fee, of course). Other transaction details differ widely. Most vendors will send you offers using e-mail, others send them using regular snail mail.
If you accept the offer, some websites will pay you with certified checks; some offer to deposit the payment directly in your bank account. Always remember to pick the dealer that allows you at least a couple of days to respond to their offer.
If you can’t answer on time, some dealers assume that you have accepted the offer and mails you a certified check. If you do not like the amount that they offered, they may claim that the jewelry has already been melted. Leaving you no choice but to accept their offer.