Selling Gold Online Guide
from Overstock.comWhen the price of gold increases, many of us wonder if those unused trinkets in our jewelry box offer an easy way to earn extra money. You may have seen advertisements offering you cash for gold jewelry, gold coins or other treasures and had some questions. Is this process reliable? Will I get a good deal? Several established online retailers, including Overstock.com, have gold redemption programs that buy gold directly from customers. This selling goldonline guide introduces you to the process and highlights the advantages of gold redemption.
What is unwanted gold? It is a strange concept considering the value of this precious metal, but think of the average jewelry box. Among the shiny pieces worn all the time may be a few gold chains that are too tangled to be fixed, a solitary gold earring that has lost its mate and maybe a few gold links from an old watch band or a gold thimble that belonged to a great aunt (or was it a cousin?). This is scrap gold--unused pieces of gold that aren't desirable in their present form.
Manufacturers recycle gold by purchasing scrap gold and melting it to be used again. This gives producers, including jewelers, a fresh supply of gold minus the expense and environmental damage of mining it from the earth.
How gold is measured
Quantity and purity determine the value of gold. The quantity of a piece of gold is measured by weight in troy ounces or grams: 1 troy ounce = 31.1034768 grams. The daily price given in the investment market is for 1 troy ounce of pure gold.
The purity of gold is signified by its karat designation or fineness measurement. Pure gold is measured as 24-karat gold or as 1000 fineness. Pure gold is often too soft for craftsman and manufactures to use, so it is alloyed with other metals to strengthen it. An alloy that is 75-percent gold is 18k gold or 750 fineness, 58.3-percent gold is 14k gold or 585 fineness and 42-percent (or just under) is 10k gold or 416 fine. Any alloy with a gold measurement lower than 10k cannot be sold as gold in the United States.
Gold selling tips
- Check to see what materials the program will redeem for cash. Many accept only gold, though some will accept other precious metals, like platinum.
- Pure gold, 24k, is the most valuable, and the value decreases for each lower karat weight, i.e. 18k, 14k and 10k gold.
- The buyer offers the seller a lump sum cash payment for an entire submission of scrap gold; the pieces are not valued individually.
- The buyer often will make an offer based on the value of the gold only. The value of gemstones left on the jewelry may not be assessed and may not be returned to you.
- Remove or have a jeweler remove from the items any gemstones, pearls and other decorative items that might have value.
Gold selling process
Choosing a program
When you decide to sell gold, you want to make sure your buyer has a respectable program. Any good program will provide potential clients with some basic information about their cash for gold process. Here are some questions to consider when choosing a company:
- Does the program have information you can read?
- Does the information fully describe the process for gold redemption?
- Do you have the option of rejecting the program's offer?
- Will the program return your gold to you if you reject their offer?
- Is a prepaid shipping label provided for the gold submission?
- Is the shipping label from a company that offers online tracking of packages?
Scrap gold for redemption
What gold items can you sell for cash? Well, many programs will accept any scrap gold you want to send them. Marketing concentrates on gold jewelry because that is what most people have.
Great products for gold recycling include:
- Gold rings like old wedding bands and class rings.
- Gold chains that have broken or damaged links or can't be untangled.
- Earrings without mates or with broken and lost clasps.
- Old or damaged gold items that do not have sentimental value.
- Any other gold jewelry you don't wear.
- Coins that don't have substantial value for coin collectors.
- Accessories like tie tacks, cufflinks and key chains.
- Watches and watch bands, links, pocket watch fobs and chains.
Keeping track of your gold
Chances are the gold selling transaction will proceed without problems; still, it can be nerve-wracking to depart with your gold. To put your mind at ease, follow these tips for keeping an inventory of your gold submission in case a dispute arises.
- Make a list with a detailed description of every gold item you are selling.
- Put one copy of your list in the shipping package and keep one copy for yourself.
- Take a picture of every gold item that will be shipped in the package; they will help you describe the items later if needed.
- Find the package tracking number on the shipping label; then track the shipping progress of your package online.
How can I be sure an item is made of gold?
Items made of gold will feature a stamp indicating the purity of the gold used, measured in karat (k or kt) or fineness. Pure gold is marked as "24k" or "1000" for fineness, 75-percent gold as "18k" or "750," 58.3-percent gold as "14k" or "585," and 42-percent (or just under) as "10k" or "416" fine. Occasionally, pieces will be made of 22-karat or 23-karat gold and marked as such.
Gold overlay items may also be recycled in some cases, and many of these items are also stamped. For example, a stamp of "GF 14k" identifies a product as 14-karat goldfill, and a stamp of "14k overlay" may be used to identify goldplated items. The quality of the gold must be 10 karat or higher for an item to be labeled as gold overlay, goldfill or goldplate.
Some vintage gold pieces or goldplated pieces may not be stamped. If you are unsure if an item is made of gold, have it tested by a gemologist.
I've heard that the cash amount offered for recycling jewelry can be less then the original price paid for the items. Why is that?
A cash for gold program buys gold items as scrap gold; therefore, they offer the seller a cash sum based on the amount of gold in the submission, but not on an estimate of the price of the new item.
Many features factor into the selling price of new jewelry, watches and other gold items, including the value of precious metals and gemstones in the piece, the method of creating the piece and manufacturing costs, even the prestige of the store offering it for sale. On the other hand, when the price of gold is high, the money you receive from selling gold chains, bracelets and other gold pieces may be substantially more than the price paid for them if the original did not include diamonds or colored gemstones.
Turn gold into cash
Overstock.com is excited to introduce you to our own gold redemption program. We value our customers, so we're offering you the opportunity to redeem gold for cash with a process that is as easy as using our online shopping site. Visit the Overstock.com Gold Redemptionpage to learn more about the program, and read the frequently asked questions feature. Then clear the clutter from your jewelry box and turn that gold into cash at Overstock.com!