Turning Scrap Gold into Cold Hard Cash
Getting Money for Old Valuables and Forgotten Treasures
Oct 31, 2008
She looks through her jewelry chest and pulls out old favorites that have long been forgotten – broken gold chains and brooches, a single gold earring missing its mate. He looks around his bureau drawers and locates a tie tack and set of gold cuff links that always lacked the proper shirt and tie. Meet the 09ers, the newest group of gold seekers.
Unlike their predecessors, the Forty-Niners, who poured into California’s Sacramento River basin in 1849 from all over the world, these contemporary gold seekers don’t have to dig deep into caves or pan the rivers to strike gold. Many have precious silver and gold items that are stored away in their homes somewhere and only require rediscovery before they can be given to the nearest jeweler, pawn shop, coin dealer, on-line scrap service, or other legitimate buyer for evaluation and ultimately for payment.
Changes in the Economy and Market
In the past five years, the price of an ounce of gold skyrocketed nearly $600 leaping from approximately $345 an ounce in January 2003 to over $920 an ounce in January 2008. Even in today’s difficult economy it still hovers around $750 an ounce. Of course, changes in the price of gold impact the value of silver, too.
What this all means to the uninitiated is that there is still money to be made if they proceed with caution and ask the right questions before trading in those old memories for hard cash. In fact, according to the California-based Professional Numismatists Guild here are three questions sellers should ask a buyer:
- Are they a licensed dealer for gold?
- Have their scales been tested and approved?
- Do they pay pennyweight or gram?
Armed with this information, sellers can begin comparison shopping. What they’ll find out is that the term ‘karat’ measures the purity of the gold, with 24-karat being the purest; anything less (i.e. 18-karat, 14-karat) is mixed with other metals.
As for pennyweight or gram, it’s important to know that the price set for gold is per troy ounce. A troy ounce equals about 20 pennyweights or 31.1 grams. The per-ounce prices above are based on a troy ounce of gold.
How to Trade in Gold Trinkets for Money
Keep in mind that many dealers have handling and carrying costs as well as holding periods, and gold prices could drop or rise during that holding period, so there is always some uncertainty when trading in valuables.
Before selling, contact multiple buyers and shop around to look for the best price. The offers probably won’t be significantly different, but it’s wise to check just in case. Or consider conducting business on-line. There are a number of web sites like Gold Kit or Cash4Gold which can help make the process easier.
In this time of a squeezed economy when every penny counts and a little extra pocket change can mean a lot, turning old gold valuables and forgotten treasures into cold hard cash may be the answer for some.
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