Selling Gold

With the price of gold currently standing at around the $1,150 (£985) mark, it can be very tempting to think about selling gold items that you no longer have any need for (wedding rings) or have become unfashionable, think brooches and pendants. It's been estimated that in the United Kingdom alone there will be around 35 tonnes of bullion produced from scrap gold this year alone.

You are bound to have seen various ads on TV or in the paper and I have seen trade stands in towns advertising money for selling gold, or maybe you've been invited to a selling "gold" party (similar to a tupperware party). Many will think - great, an easy way to earn some money just for selling gold you no longer need, but before you go rushing into anything, think very carefully. These companies may not be all they seem at first glance.

With the current economic upheavals all over the world there have been numerous companies set up that claim to buy your unwanted gold for a fair price. Whilst some are legit, many are not. There is a report in the Daily Mail this weekend outlining the various nefarious practices some of these "cash for gold" firms will use.

Many times they ask you to send in your gold so that they can assess it and promise to send you its market value by cheque. Remember, once the gold has left your hands, you have lost the upper hand, it can be extremely difficult to get it back and what's more you have no idea if they are a legitimate company or not.  Of course, that's not what these companies tell you, they will tell you that as the vendor, you can reject their offer and the gold items will be returned to you, in reality that's not quite how it happens.

Selling Gold?- The Great Cash for Gold Scenario

You send your items of gold off to the firm. The firm sends you a very low value amount by cheque. You ring them up and say you're rejecting their offer whereupon they offer you more. (this is if you can actually make contact with them in the first place which may be nigh on impossible to accomplish).  Usually a 7 day period is given in which you have the opportunity to reject and send back the cheque.  By the time you've made contact with the firm it may well be too late to send it back.  Not only that, the real reason that they can't send you back your gold items is that they have already left their possession and are on the way to be melted down for bullion.  Should the gold items contain other things such as gem stones,  they will only be returned to you if you pay for postage.

Selling Gold - The Market Price

Many of these companies do not  tell you the percentage of the market price that they will pay.  That is not against the law, it is up to the seller to determine what price per gram they are willing to pay and it could be anything from 10% to 80% depending on the quality of the gold offered.

Here is the name of 1 such company that is named and shamed in the Daily Mail - Money4Gold. You can read more about their practices by visiting the Daily Mail site. Not all of these companies are rip-off merchants, there are perfectly above board companies as well. It is up to you to do your homework before parting with any gold.

Where to Sell Your Gold

Of course you could always auction your unwanted items by selling gold via eBay. Have a look and see what other gold items are making, if you have a similar item such as a brooch or pendant then you could do worse than selling it on eBay or another auction site but for goodness sake get it valued first.

Alternatively go to your local jewellery dealer in your own town and find out what they are prepared to offer, at the very least you will be able to have an impartial valuation done.

And if you don't really want or need to sell your gold but you never wear it, how about having it redesigned into something unique that you will be proud to wear.  There are plenty of individual jewellery designers around - try googling it.