We’re all feeling the pain from the new normal presented by the pandemic. Many of us are strapped for cash. But there are ways to get creative and make some extra income.
One way is to sell your gold. If you have extra gold that you haven’t used in a while or have thought about selling but have put it off, this is for you. Selling your gold doesn’t have to be a complicated process. One of the questions you might be asking yourself is: Who buys gold near me?
With this guide, we’ll teach you to avoid the common pitfalls of gold-selling while gaining some valuable knowledge about the general marketplace.
Though a gold party will definitely be out of the question we’ll help you navigate the gold buying landscape so you can get the best price for your gold. You’ll have cash for your gold in no time.
How Much is Gold Actually Worth?
You want to get to the how-to sell my gold part in a hurry, but to do that you’ll need to know how much your gold is worth.
This means you’ll need to know how to measure the amount of gold you actually have and compare it to the market price. We’re going to need to start by doing a little math. But don’t worry, we’ll walk you through it.
- Determine the Purity – The quality of the gold is measured in karats. Karats measures purity on a scale of 1-24. You’ll then need to divide that number by 24 to get the percentage of purity. Ex. 12k gold would have 50% purity and 24k gold is 100% pure gold.
- Determine the Weight – Gold prices are quoted in troy ounces. Each troy ounce is 31.1 grams. Break out a scale and weigh your gold to determine how many grams it is.
- Determine Gold Price – Find the current gold price and divide by 31.1 to determine the price per gram of gold.
You can find the current price for gold by searching for “spot gold” on any site that keeps tabs on commodities prices. It’s the number next to XAU, which represents the current gold price, in troy ounces.
Spot gold is just what it sounds like, gold prices “on the spot”. Gold prices continually change so the term fits the constant variance.
Now that you’ve warmed up your math skills, we’ll determine the melt price. Stick with us. With gold prices rising, we promise it’s worth it.
Finding Melt Value
Why determine the melt value? While spot price tells you the price of gold at that moment in time in general, you need to know how much YOUR specific piece of gold is worth.
So, melt value is the value of YOUR specific piece of gold.
Here we’ll combine the weight of your gold, in grams, the purity of your gold, in percentage, and the current price of gold, in grams.
For example, if gold is selling for $1,866 per troy ounce, you divide this number by 31.1 to get the price per gram: $60 per gram.
If you had a 20-gram gold piece with a purity of 12k, you would determine the percentage with 12/24 standing at 50% purity or 0.5.
Your calculation would then look like this: 20 x 0.5 x 60 = 600
Your gold piece would have a melt value of $600.
Getting Your Gold’s Worth: Who Buys Gold Near Me?
You’ve determined how much your gold is worth. There’s still one more step. You need to figure out not only who buys gold, but you want to find someone who will give you the best price for your gold.
Even after you’ve determined the melt value the buyer still needs to make a profit when they sell it forward. They also need to figure in the cost of purifying the gold and are subject to the fluctuating gold price, melt loss, and other expenses. That being the case, nobody will buy your gold for the full theoretical market price.
When selling your gold to a gold buyer around you the best way to approach selling is to shop around. Go in person to the various places around you and get a quote for each.
Using the example above, if you have a piece of gold with a market value of $600, you might get an offer of $250. Then at another buyer, you might get an offer of $320.
Still, experts say that if you can get 60 to 70 percent of the melt value, that is a fair price. Don’t sell anywhere that offers 50 percent or less.
You should get at least three estimates and even more for higher-value pieces or items.
This will give you a sense of what the market is willing to pay for your gold and raises the probability that you’ll get the best price for your gold.
Finding a Trustworthy Gold Buyer
When finding out how to find a gold buyer, you’ll want to keep in mind that there are scammers and deceitful operators.
A few things to do when looking for a buyer near you:
- Make sure they’ve been in business for a long time. Dealers in the business for decades are better than those in the business for weeks
- Ask what kind of certificates they have. They need to be licensed by the local police stations along with the department of justice.
- Search through their google and yelp reviews to see what others are saying. See if the owner responds to negative reviews positively. If a negative review is complaining about the offer, they are most likely upset with the jewelry store that overcharged them, not with the gold buyer making a fair offer.
Turning Nuggets into Cash
The market for gold is only increasing with experts projecting the upward trend is long-term. If you’re considering selling your gold, this is good news.
Asking yourself who buys gold near me doesn’t have to be a chore. It can be rewarding to learn a new market while getting your gold’s worth.
If you enjoyed learning about selling your gold, please check out our blog to learn more.