Gold isn't the only metal selling for a pretty penny. Copper, platinum and other metals are also coveted by shops and metal recycling companies. In fact, as demand for these metals continues to rise, metal theft is becoming more of a problem nationwide. Thieves are stealing copper wiring from homes and guardrails from highways. There has even been a nationwide trend of catalytic converter theft (the car parts contain small amounts of platinum and other precious metals). The metal market has weakened somewhat with the fall of the U.S. dollar. In general, though, the metal market remains lucrative and strong.
As of mid January 2009, a troy ounce (roughly 31 grams) of gold was worth around $859. Seems like a lot of money, doesn't it?
Well,
not quite. If you bought a gold necklace for $200, then don't expect to
reclaim your full investment when you sell your gold. Jewelry is
extremely marked up when it's sold, either to generate profit or to pay
for crafting or materials. Also, gold buyers must pay to have their
purchases refined, which results in further cuts to the sellers'
profits. If you sell that $200 gold necklace to a gold buyer, you could
reasonable expect to get $50 to $100 from your jewelry. That's still a
nice chunk of change, especially during rough economic times. Just
don't expect to get the full value from your jewelry.
Understand the market before you sell gold
The economic recession is prompting many Americans to sell their gold, but the American Society of Appraisers is urging people to slow down and take a deep breath before selling. Anyone who wants to sell off scrap gold should first educate themselves about the gold market and the appraisal process.
Follow these tips to get the best prices for your scrap gold:
Find out the karats of your piece of jewelry. A 24-karat piece is 99-percent gold, and an 18-karat piece of gold is 75 percent actual gold. The karat designation is often on a stamp on the backside of jewelry.
Check sites such as Kitco.com for listings of current gold prices.
Find out how much money you should get from your gold sale by asking jewelers and metal refinery officials the amount of the percentage they take from sales.
If you have jewelry that is not broken or mismatched, you may get more money by selling to a jeweler or an independent buyer than you would by having it melted down.
Only work with appraisers who are accredited by nationally known gold appraiser associations.
