We see the signs and hear the words almost daily these days: “We buy gold!” It is indeed an excellent time for selling gold since its worth has been so high lately. If you are considering cashing in on the situation and selling some gold, there are some very important things you should know.
Before you can start to sell scrap gold you will need a few key elements i.e. a source or a means to purchase scrap gold cheaply (to be used as inventory), a digital scale to weigh your gold, and more importantly you will need to know the current gold scrap rate. Finding a source for scrap gold can be as simple as running an ad in your local classified section. Your ad does not have to be complex, it can be as simple as a title that states, “We Buy Gold.” In the body of the ad you can give your contact information. A digital scale can be purchased from any office supply store. You can find out the current scrap rate by calling your local gold exchanges, checking the stock market, or doing an online search. The Internet has several resource with up to date pricing on gold and other precious metals.
Now that you have a general understanding of how to buy gold below market value, you need a means to sell it for a profit. Since gold is always in demand it is a good idea to start out by contacting your local gold wholesalers and retailers and let them know you wish to sell scrap gold at a fair market value. Most companies will buy from you, then melt the scraps down into small gold bars. Later they will use the gold bars to make jewelry and other items.
So now, who will be asking yourself, “Whom should I sell my gold to?” Well with all the “we buy gold” statements being thrown at you, it can be tough to decide. If you live close to a refiner, that will be your best bet, but most of us do not. The second choice can be a local jeweler. If he does custom jewelry, he will be in the market to buy so he can melt the gold, make something new, and resell it. At some malls they even have kiosks with buyers or you can even sell scrap gold on eBay. A more common choice these days is to sell by mail. This can work very well if you are smart about it. First of all, make sure you know all the terms of the agreement and understand the complete process. The buyer should provide you with a postage paid envelope, perhaps even with FedEx or UPS, and all packages should be insured for a high amount. Sometimes they will provide you with a list so you can detail what you are sending. If not, write it all down yourself and include it in the package. You should always make sure you have the option of rejecting their offer and having your gold mailed back to you, either before or after you receive any monies.
Try a few dealers, just say to them if I wanted to sell my gold what sort of price would you give me for it, you can just say that for the time being you are looking for an estimate. When you have visited several stores, you will be in a much better position to know just how much people should be offering you for your gold. If you have any unwanted gold items, it is always worth looking around for companies that say we buy gold.