Gold prices have increased dramatically in recent years as people buy gold in the form of gold coins and bars for an investment as the value of the dollar has dropped. Does this mean that now is a good time to turn that scrap gold into cash? Well that depends on the train of thought you follow. Obviously, the price of gold is up and if you subscribe to the buy low, sell high theory, now is a great time to sell. The current economic climate has more people in need of extra cash and letting that old broken jewelry sit in a drawer gathering dust while you struggle to pay the bills or pay for repairs around your home doesn't seem like such a grand idea. However, if you are doing fine financially and if you feel like investing in gold is the way to go, you should probably hang on to that scrap gold as a hedge against the dollar.

Another thing to consider concerning the sale of your scrap gold is the sentimental value involved. Even though that necklace may be broken, it may have emotional value due to how you acquired it. Was it a gift from a special loved one or friend? It is a gold ring from a divorce? All of these things will be considered when deciding whether or not to sell your gold. Also, remember, gold is in a limited supply. There is only so much of it in the world and it is likely that the new piece of jewelry or gold bar you purchased is made up of "old" gold that was melted down to produce a new gold item.

Let's suppose that you have considered all of the above and have decided you would like to sell some of your scrap gold. What items can be sold as scrap gold? Check your jewelry box or lock boxes for old rings, watches, necklaces, gold pieces, wedding ring sets, ear rings and pieces of broken jewelry. Now that you have what you are going to sell, how much can you expect to sell your scrap gold for? When speaking of gold, the term 'karat' refers to the purity of the metal. Therefore, the more pure the gold in your items, the higher the value. The gold buyer will vary the price they pay for scrap gold on a daily basis as they consider the change in the price of gold. The offer you received yesterday will likely be different than the offer you receive today because of this variable. Also, keep in mind that the buyer has other costs they incur such as advertising, smelting, stripping the jewelry of non-gold items and normal business overhead. Thus, you price receive may be well below the full market value.

Many people sell their scrap gold to one of the many online brokers that have sprung up on the Internet. Even though there are many reputable brokers online the high demand for scrap gold has led to some unscrupulous persons setting up shop on the Internet and taking full advantage of people's lack of knowledge in the selling of scrap gold. Therefore, unless you have experience in the selling of these items, I would recommend that you locate a local buyer with a good reputation.

Since you will not likely be able to determine the actual value of your items yourself, it is advisable that, like any sale or purchase, do some research, shop around and compare offers to ensure you receive the best possible price for your scrap gold.