Four Things You Should Know Before You Sell Your Gold And Silver

If you have broken or unwanted gold or sterling silver jewelry lying around the house, you can turn that clutter into cash by taking your items to a gold dealer or pawn shop. However, not all buyers and not all gold and silver items are created alike. It's important to do your homework before you pack up your gold and silver items.

What you need to know about selling unwanted gold

1. The price of gold and silver fluctuates daily. Silver and gold are commodities, and thus, the price per ounce of these items varies daily depending on the supply and the worldwide demand for them. This means that you likely won't get the same price for your gold as your neighbor or brother-in-law got a week or a month ago.

2. Not all gold and silver is alike. The offer you'll get for your gold depends on the carat of the gold. 24k will get a higher offer than 14k or 12k. The higher the carat number, the higher the content of gold in the item. (There is no such thing as 100 percent solid gold; gold is too soft to shape without adding another alloy.) Usually, dealers are not interested in silver items unless they are sterling silver (as opposed to silver-plated items.) This designation will be stamped somewhere on the item.

3. Gems add no value. If you have unwanted rings or other jewelry that includes gem stones, it's important to remove those gems before you take in your items. Since gold dealers are only interested in weight, you'll only get the value that the stone adds to the weight of the gold, not the value of the gem. It is better to sell them to a jeweler as loose stones or have them re-set in a design you like better than the old one.

4. Dealer commissions vary widely. When you sell your gold to a dealer, you won't get the daily spot rate for gold (although the price you're given will be based on that value.) Dealers are in business to make money, so they charge a commission for handling your sale. Most states give gold dealers a lot of leeway in what they can charge for their services, so it pays to shop for the best price. Don't be afraid to ask boldly what they charge for their services.

Selling unwanted gold and silver can be a great way to finance that family vacation or remodeling project. Just make sure to know how the process works to help you get the most for your items. For more information, contact local gold and silver buyers.