Here’s how to sell your gold jewelry, coins and nuggets…
Contributed by Dawn Daily Green & Eric Prendeville
Do you have old, broken or unwanted gold jewelry? Or do you have gold coins or nuggets? If you are considering selling in the future or just want to know what your gold is worth, here is a quick guide to understanding the gold you own, and the selling process.
To understand how to sell your gold, it pays to understand the price of gold and how it is determined. The price of gold is based on contracts, which are traded between major banks and investment firms around the world. A future’s contract of gold is comprised of 100 troy ounces, about $170,700 in value as of 5/4/2020. Like other commodities, there is a price called “spot price”, which represents the price for immediate delivery of the asset.
Gold is traded nearly 24 hours per day and is traded on U.S., Hong Kong, London, New York and Australian markets. It is a very liquid asset, meaning it is exchanged frequently and there are a lot of entities trading the metal.
The price of gold is measured per troy ounce. Precious metals are weighed in troy ounces, which differ than ounces you may be used to using when cooking at home for example.
The offer on your gold jewelry, coins and nuggets is based on the gold content and corresponding value. Gold content is a product of the weight of the metal, measured in troy ounces and the purity (or karat) of the gold. Once the gold content is determined, then it’s a matter of the evaluating the gold at a current price.
The price on any given day is determined by the prevailing market supply and demand of gold globally. Local markets for a good or commodity are of course a different market than big financial institutions trading futures contracts. Wholesale markets and retail markets differ. The same principle applies with commodities such as corn. If you purchase a bushel of corn, you will likely be able to negotiate a higher price than if you buy one pound.
A local gold dealer makes an offer on gold based on their ability to buy and sell precious metals as a business. The value in a local gold dealer is in customer service and the ability to provide liquidity, i.e. a quick and convenient way to sell your metal. We encourage anyone looking to sell their gold to explore and look at all options available to them. It is important to find a reputable dealer you trust and provides you value.
Before selling your gold, it is a good idea to have it tested to determine that it is genuine gold and to verify the purity of the gold. Treasures of the North tests precious metals at no charge.
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