- Personal Finance
Selling Your Gold? How Much Is My Carrot Jewellery Worth?
How Much is Your Gold Worth?
Selling your Gold? How much is it Worth?
When the recession hit, stores such as cash exchange and cash converters found more people than ever before were coming in to sell their belongings, however the biggest thing to take off was people cashing in on their gold. I am sure you have all seen the adverts they are now everywhere you look, people can now sell their gold in shopping centres, jewellers, online, and even at Gold parties, but how much is your Gold really worth?
Cash for Gold has admitted they normaly pay their customers from as little as 20 percent of their Golds real value while other companies often pay 90 percent. As the price of Gold has gone up to £608.00 an ounce, consumers have been urged to cash in on their unwanted jewellery and more companies are setting up mail services where you can post your jewellery to them in exchange for a cheque.
Gold prices have been rising for the last seven years and more than 35 tonnes of bullion is expected to be produced from scrap gold in the UK this year, that is worth about £700 million. Gold is in fact 21 percent higher than this time last year. This has sparked an influx of new companies such as cash4gold, CashMygold, PostalGold, and Ounces2Pounds. However industry figures show that many of these types of companies are offering less than a quarter of the golds real value. this is mainly because they spend a lot of money advertising their business to consumers on television and in Newspapers etc so consequently have to offer you lower rates. The businesses tell you they do not offer full market value but Do not rip you off. I read an article in the paper where they tested these claims and offered some of these postal companies an ounce of 24 carrot Gold worth about £608, this was their results..........
cashMygold said they could offer up to £545 which is about 90 percent value of the value.
PostalGold offered £520 which is about 85 percent of the value.
GoldTraders which is one of the only ones that lists its prices on their site offered £546 which is also 90 percent.
While Cash4Gold one of the most popular ones and well advertised ones too only offered £367 which is about 60 percent of the value.
Most of these companies don't give you a price guide on their websites, you wont know how much they pay until you actually send your Gold off in the post, They may advertise as offering high prices but because they don't give you a price guide most consumers will not realise they are being ripped off.
Traditionally gold has been bought by high street jewellers for 90 percent market value if they shop around, however these new companies insist the consumer posts their gold and wait for a valuation which they can either accept or decline. Sellers should check that they have the right insurance before mailing their gold and think about paying for enhanced compensation, it is also important to keep proof of posting, most of these postal companies only offer up to £500 so if you think your jewellery is worth more than this then it would be best to get extra insurance, also note that some of the companies also charge for sending your items back to you if you decline the offer they have made.
The head of research at Bullion Vault says they expect gold to increase by a further 13.5 percent this year taking it up to £1,135 a ounce.
You can sell broken and unfashionable jewellery, twisted chains, medallions and coins can all be melted down for cash, if you have jewellery with gems on such as diamonds then you will be better off selling it on eBay or to a jewellers who would then re sell the item, as to much of the weight would be made up of gemstones therefore the scrap value would only be a fraction of its real worth.
Gold may be beautiful but it lacks the strength of other metals so jewellery gold can be mixed with metals such as zinc and copper to make it robust enough for everyday wear, the more of another metal that is added the less the Gold is worth, in the UK many gold items carry a hallmark to certify the purity of the gold, some hallmarks are in numbers, if your jewellery has 375 on it it means its 9ct, 585 is 14ct, 750 is 18ct and 916 is 22ct which means it is 91.6 percent pure.
Scrub your gold with a toothbrush and a little fairy liquid to clean up the hallmark, jewellery without a hallmark will need to be tested electronically or chemically to determine purity. If the market price is £18.20 per gram and you have a 9ct gold chain of 20 grams, then the gold value is £18.30x20x0.375= £137.25, A dealer paying for it should offer £100-£110 allowing a reasonable margin for their costs.
Hope you found this interesting.