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Should You Sell Gold To A Local Buyer Or An Online Buyer

You have a choice of where to sell your unwanted gold and jewelry.  You can walk into the store of one of the many gold buyers that you will surely find in your local area, or you could use the services of of those companies which by gold online and you ship your gold and jewelry to them.

Both have good and bad points, and below we look look at which is usually the best method so you get the most money for you sale.

Let’s start by quickly confirming where you definitely should not sell your gold – and that is to a pawnbroker.  These companies are used to buying low and selling high and will, typically, never offer you anywhere near the real value of either the precious metals or any gemstones you have in the jewelry you want to sell.  Take my advice and completely avoid them.

The next thing to look at is your physical location.  Do you have multiple gold buyers in your locality?  If you are in a small town or a rural location, you may only have access to one physical location that buys gold and jewelry.  If that is your situation, it could mean that the gold buyer has a complete monopoly on the local business and may not be willing to pay a high amount.  If that is you then you should be looking to sell via one of the many companies that offer to send you a gold pack so you can mail in your items.

If, on the other hand you are like me and live in a large metropolitan area, there will be a lot of different gold buyers vying for your business, and all probably saying they offer the most money.  In this case you are lucky because you have a choice.  For me, for example, I have 20 or more within 15 minutes drive.  I did my research and found that Glendale cash for gold offered the highest prices, so that is the gold buyer I use.  If I had found that a cash for gold online service was better, I would use them.

 

 

You then need to get some sort of idea of the items you are going to sell and what sort of quality they are.  The Karat of the gold in you items will have a big influence on what will be paid for them.  You should get a magnifying glass and check the stamps on all you precious metals, gold, silver and platinum, and write them down to you can make a list so you know what quality you have.

If you have items that do not have a stamp, you can always get them appraised by the gold buyer you eventually use.  A reputable buyer will always appraise for free when you are selling.  Remember, that gold plated items will not be something that a buyer will want.  You should also weigh you items, if you can, and find out the total amount of grams you have, for each karat type (14k, 18K, 21K) and for sliver and platinum.  This is called the fineness and you can get more information here.

Your next step is the one that is going to ultimately effect the amount you will get.  You you select several local (if there are any) and online buyers and check them out online.

You need to look at their website, and their reviews, and ensure that they have been in business for a reasonable amount of time and have decent reviews.  Then call each one to find out how much they pay for each gram of gold etc.  Tell them how much you have, and you can make an estimate of the total amount of money you can sell your items for.

You then need to decide if you need to money today or if you can wait a few days.  If your need is urgent, then you will take your items to the local buyer who offers the most.  If you can wait a few days, you can use a mail-in service.

If you chose to use a mail-in service, you should also talk to the buyer to find out what their terms and conditions are.  Make sure that you are not locked into the payment when you get it.  So, for example, if you find that the payment is too low, you should be able to refuse it and get you items back, all free of charge.  If they will not do that, then use a different buyer.  Also make sure you understand what they do with precious gemstones in the jewelry you send.  Some buyers completely ignore gemstones and keep them regardless of what they are.  This could cost you a lot of money if you happen to have a quality diamond, for example, in something you send them.  A good buyer will evaluate the gemstones in your jewelry and pay you a fair price for it.

Also make sure that any cash for gold online service has prepaid insurance for your items should they get lost in the post.

So, to summarize, speak to several gold buyers and make sure you feel comfortable dealing with them,  Do you research, know what you are selling, and pick a buyer that is reputable.  Both online and physical location gold buyers will be offering similar prices and you can use both.  Pick the one that pays the most, by gram, and use that one.  If you have a lot of gemstones in you jewelry or can’t evaluate the items before you sell, you may want to use a walk-in gold buyer so you can actually watch them evaluate your items.  Whichever you use though, make sure you get all your questions answered on the phone before using your valuable time to visit them or send your jewelry.

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The Factors Effecting Gold Prices

Twenty Year Gold Price Chart

Twenty Year Gold Price Chart

We all know there is money to be made, and lost, in Gold.  The problem is for most people starting out is, whether looking to buy or sell gold, when to pick the right times to make ant sort of trade.  Let’s face it, it is difficult to decide with gold prices going up and down every day, seemingly following no discernible trend, and all the so-called “experts” out there giving contrasting advice.

Regardless of the way you want to trade, buy or sell physical gold, futures, jewelry or IRA’s, you need need to be able to look at the fundamentals of the factors effecting gold markets.  And, the good news, regardless of all the masses of complex and convoluted information out there, is that it really is not rocket science.  Gold prices and the things that effect them can be understood by everyone.

Typically, when the investors see that traditional stocks will make them gains (profits) they will move money into stocks at the expense of investing in Gold.  This will tend to slow, stop or retard the prices of gold.  Conversely, when investors see that traditional stocks are moving down, they will move money into gold (and other precious metals) as these are seen as long term assets with stability.  More money moving into gold typically means higher demand, which means less supply and therefore higher gold prices.

Of course, everything is not black and white.  There are many other factors that effect the direction of gold prices.  For example, one must look at consumption and what the major consumers such as China, India and the USA are doing.  If, for instance, India has a large rise in gold usage (for jewelry) then there will be less gold to use and, again, the laws of supply and demand will kick in making gold prices move up.

The other factors to look at are inflation in the major economies, especially the USA., and how much gold the central banks are moving around.   Many think that the central banks are conspiring to artificially keep gold at lower levels – which would explain why there have been massive transfers of bullion into Switzerland recently – but some see this practice as having no real effect.

At the end of the day, whichever way you want to trade, carefully watch what the big investors are doing and where they are moving their money – that should give you a good “heads-up”.

 

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