How to Sell Gold Safely: Beware the Risks

We’ve all seen those TV adverts encouraging us to boost our coffers by selling our unwanted gold, but if you’re not selling via your local jeweller and using a postal service instead, how do you know you’re selling to a trustworthy source who will give you the best available price?

Should we really be sending something so valuable away in the post to a company we’ve not had much dealings with? Here’s why you’re often better off selling your unwanted gold and broken gold jewellery to your local independent jeweller:

There’s no doubt about it, gold prices have gone through the roof, and in these unstable economic times, it has been seen as a safe investment. Even scrap gold is worth a bob or two, as it can be melted down and turned into bullion. This has meant, however, that a plethora of sites have popped up, who buy gold on the cheap and sell it on, and as many people, quite understandably, don’t know how much their gold is worth, these sites can, unfortunately, sometimes be unscrupulous and offer a price much lower than its actual worth.

One way of checking how much your unwanted gold is worth is to visit your local jewellery shop, as they will be able to advise on the carat (which indicates purity) and the weight, and your local jeweller should also be able to give you a benchmark price which you should be aiming for when selling your gold. More often than not, your local independent jeweller will also offer a much more competitive price for your unwanted gold jewellery than postal gold services.

The gold industry is unregulated, so when you sell to a website or via a postal service, you just don’t know who you’re dealing with – not so when using your local jewellery shop; not only will they give you a fair price for your scrap gold, but they’ll give you top service too. After all, your local jeweller is not just after your unwanted gold; they’ll also want your repeat business for any new pieces you may be looking to buy and your recommendations to friends and family too!

Furthermore, even if you sell your gold to a website or postal service that offers the option to reject their monetary offer and have your gold returned, it can sometimes be a struggle to get your gold back, or you could be charged postage for the return. As a worst case scenario, your gold could even have been melted down before you’ve had the chance to reject the offer! This would never be the case with your local independent jeweller, as you wouldn’t be asked to part with your gold in this way before they give you an offer for your unwanted jewellery.

It’s also worth bearing in mind that not all jewellery should be sold as scrap – scrap should be just that: unwanted trinkets, broken items of jewellery and odds and ends such as gold butterfly clips from earrings. Your local independent jeweller will be able to tell you whether your jewellery is scrap or more valuable than that; for example, fashion items such as branded jewellery are often worth more when sold on whole rather than melted down for bullion, and jewellery with gemstones included could be worth a lot more than a gold site tells you it’s worth. Your local jewellery shop will be able to offer a valuation on any piece of jewellery you’re thinking of selling.

As with most things in life, it’s always nicer and more reliable to be dealing with someone face to face; your local independent jeweller will be able to give you the best possible advice when it comes to selling your gold, and most likely the best price too!

Gold: The Classic Investment

You may or may not have seen the news recently which reported that the price of gold has hit new record highs. Whilst this is more concerned with the gold bars governments use for complicated economic transactions it does show one thing: gold is always in demand.

There are many other precious metals which are extremely popular in the jewellery trade, with silver and platinum right up there as well, but gold is and always will be a classic in every sense of the word. It is versatile, goes with so many looks, can be made into endless pieces and is a great investment.

Maintaining Value

By purchasing, for example, a gold necklace, not only will you get to wear it year after year after year, but once you decide on a change, you can actually recoup some of your investment by selling it for cash. What other similarly sized purchase would retain a percentage of its value a decade or so after you first bought it?

Here at EK Jewellers we are always busy with our buy gold service. Think of it as an investment. Buy something you like, then a few years down the line get something back for it to spend on another more modern item, or anything else you please. Now what other purchase would allow you to do this?

Purchasing Gold Jewellery: how to tell the Genuine from the Fake

Gold has been used to make jewellery for thousands of years and it’s easy to see why. This precious yellow metal is soft enough to be worked into the most intricate designs yet it is also durable and never tarnishes. Wearing a piece of beautiful gold jewellery has always been a desirable way of displaying status and wealth.

Unfortunately for purchasers, fake gold jewellery has been around for almost as long as the genuine thing. Although there’s nothing wrong with wearing a piece of imitation jewellery if you know that’s what it is, nobody wants to unwittingly buy fake gold that has been passed off as real, ‘solid gold’ that is only gold-plated, or 9 carat gold sold as 22 carat.

Many professional jewellers and gold dealers develop a sixth sense that alerts them to suspicious items, but even experts can sometimes be fooled. The only certain way of proving something is made of gold, and determining the quality of that gold, is by scientific testing using acids or specialist electronic equipment.

So how can an inexperienced buyer tell the difference between genuine and fake gold jewellery? Here are a few signs you should look out for:

Hallmarks

In the UK all gold items offered for sale, and over 1 gram in weight, are legally required to be tested and hallmarked. This can be done by one of the UK’s four independent assay offices or by an assay office in one of the European countries that are recognised by the UK as having the same high standards.

A hallmark isn’t a guarantee of authenticity as a piece of fake jewellery can have a false hallmark, but if you familiarise yourself with genuine hallmarks you might be able to spot a fake.

To confuse the issue, if you are buying antique or second-hand jewellery the hallmark might have been worn away or removed during repair work. The lack of a hallmark could also indicate gold that was originally bought abroad.

Look and feel

Gold is a heavy metal so be suspicious of a piece that seems light for its size.

On second-hand jewellery small areas of gold plating might be rubbed away to reveal a different metal below.

A piece of jewellery that is attracted to a magnet is definitely not gold, but the magnet test is not 100% accurate as other metals including copper, silver and lead are also non-magnetic.

Workmanship

Good quality gold jewellery is usually made by skilled craftsmen. Rough edges, crude engraving or anything that looks as though it hasn’t been carefully finished could be a fake. Links in gold chains are always soldered shut so they cannot accidentally slip apart, and clasps are firmly attached.

Source

Who is selling the jewellery? With today’s high gold prices there are few genuine bargains around so beware of anyone offering very cheap gold jewellery. Be especially careful about buying at markets or car boot sales where the trader does not display any contact details. If you later find you have been sold a fake your chances of recovering your money are practically nil.

For complete peace of mind buy your gold jewellery from a reputable jeweller, preferably one that is a member of a recognised trade organisation such as the National Association of Goldsmiths. A professional jeweller will be happy to answer your questions and give advice if needed. Take your time to properly examine each piece. Purchasing genuine gold jewellery is not something to rush if you want to be sure of selecting a piece that is exactly right for you or the person you intend giving it to.

Get the Most for your Scrap Gold

Do you have any old coins, watches, broken jewellery or other unwanted items made from gold? These can all be classed as scrap gold and could bring you a cash sum when you really need it. Selling scrap gold is becoming more popular as the recession bites and people are looking for ways to enhance their income.

The value of gold changes all the time in response to world markets, and the London Bullion Market Association publishes a current gold price twice a day. Reputable UK buyers of your scrap gold base the price they will pay on these ‘gold fixings’, adjusting them to take account of the costs of recycling what they buy.

Gold Parties

A relatively new phenomenon is the gold party, which is taking off in the UK. This is where someone holds a get-together for their friends and acquaintances to bring along their scrap gold, and an agent will hand over cash for it.

Unfortunately, because people are naïve about the value of gold, they often accept ridiculously low prices for it. Taking it in person to a local jeweller with a good reputation is much safer than selling it at one of these parties, or sending it off to an internet business.

If you do decide to sell your scrap gold for recycling, you could also be helping to save the planet. Give yourself a pat on the back for reducing the damaging effects on the environment of over-mining gold ore.

EK Jewellers is a friendly, local Essex jewellers serving customers throughout Hainault, Ilford, Redbridge, Havering, Woodford and surrounding areas as well as London. As a family run business established for over 36 years, we have developed a strong reputation for quality of workmanship. For more information visit http://www.ekjewellers.co.uk/ or call us on 020 8500 3191. We pay the best prices for scrap gold in Essex.