COVID-19 pandemic is wreaking havoc in the United States with over 1-million people infected within just three months. Gold prices have been unsteady and hitting records every day. With the mounting uncertainty and fear over the recession from the coronavirus, many investors are dumping their gold for cash. Moreover, because of the extended lockdown and the economic downside, many people are faced with a financial crisis and are parting with their precious gold jewelry in favor of cash.
As per Forbes.com, gold should not be treated as a stable or steady store of value. It is a misconception to believe that gold is a consistent store of value. Just like everything else, the gold price is created and it keeps fluctuating according to demand and supply.
If you are planning to sell off your gold jewelry, you have a plethora of choices in terms of how and where to sell. You could consider selling online or via a pawn shop, or at your local jewelry store. Implement the following tips for a smooth and seamless transaction.
Do Not Be Impulsive
You must carefully assess all the pieces of jewelry you are planning to sell. There is some emotional value attached to every piece of jewelry you possess. Do not sell something that is your prized possession because someday you are going to regret selling it. Ideally, if you must sell your gold jewelry, identify broken items, outdated pieces, earrings from a missing pair, etc.
Get a Professional Appraisal
Appraising an item of jewelry is the most accurate and precise statement of its worth. Knowing a jewelry piece’s accurate value is essential whether you are thinking of selling it, keeping it, or insuring it. You must necessarily have all your intricate or antique jewelry appraised professionally before selling it to gold buyers who pay by weight. The true value of a designer or antique gold jewelry depends more on factors like history, rarity, and designer. A certified gemologist must also, appraise your antique or designer jewelry if it has semi-precious and precious gems embedded in it.
Know Your Jewelry Composition
Gold jewelry in the United States is very rarely carved out of pure gold. Most gold jewelry here is 10-Karat or 14-Karat or 18-karat gold. It implies that most jewelry is not made of 100 percent pure gold. Some other alloys are generally mixed with gold for producing jewelry. While selling your jewelry, remember that you would be getting paid for the pure gold component only.
Identify a Reputable Buyer
You must sell your gold to one of the top gold buyers in your state. They must have the necessary license for running the business. A reputed jeweler would surely have membership in one of the jewelry trade associations like ‘Jewelers of America’ that necessitates members to possess high ethical standards. You may verify with BBB or Better Business Bureau. Find out if the jeweler has any customer complaints. Do a thorough research and background check! Examine the credentials of the company before selling off your jewelry.
Always Shop Around
Irrespective of where you wish to sell, you must initiate the process by starting locally. You must take your jewelry to a trusted local pawn shop or jeweler and find out what price is being offered to you. They should give you an accurate estimation of the value of your pieces of jewelry to be sold. You must obtain a base price before soliciting online bids and some other offers.
You must be alert and steer clear of rogue buyers or transient gold buyers also called pop-up dealers who generally visit your town and do a lot of promotion and advertising. They generally, set up shop somewhere in a hotel. These buyers often disappear leaving you underpaid or even unpaid on some pretense or the other.