How Much Can You Sell Gold For?
Many people have old jewelry sitting around collecting dust. They often find themselves wondering, “How much can you sell gold for?” Thanks to a weaker U.S. dollar, the price of gold has surged over the past couple of years.
This value increase means sellers are likely to get a higher return than in previous years. It doesn’t matter if they’re selling jewelry, bullion, or scrap.
This article explains how to determine the resale value of gold in today’s hot market. It will discuss how the purchase price varies for different buyers and what red flags to watch for.
Factors That Determine Gold’s Resale Value
Several factors determine the resale value of gold. Each of them plays a role in tandem with the other.
Current Spot Price of Gold
The most important factor when determining gold’s value is the current spot price. This price, along with the purity or weight, determines the actual value of a gold piece. The spot price of gold fluctuates daily and heavily relies on supply and demand.
The spot price, which is the current market rate for 24K gold, should not be the expected offer from a gold buyer. Sellers should expect a fraction of the spot price based on the following factors.
Gold Purity (Karat)
One of the most critical factors that affects the price of gold is its purity, or the number of karats. The higher the karats, the purer the gold will be.
Most gold jewelry is available in 10K, 14K, or 18K, but some pieces may also be available in 24K. The 24K designation means the gold is 100% pure. However, other types of gold are less pure. Lower karat gold refers to a combination of gold and other metals. Below is a purity guide based on the kind of gold a seller may have.
- 10K: 41.7%
- 14K: 58.3%
- 18K: 75%
- 24K: 99.99%
Weight
Another factor that can affect the price of your gold is its weight. The heavier the gold, the higher its value. Jewelers and gold dealers weigh gold in grams or pennyweights. One pennyweight is equivalent to approximately 1.55 grams.
Form of the Gold
The type of gold also affects its resale price. Gold jewelry typically depends on the purity of the gold. When selling gold coins, however, other factors can influence the price. Rare or old coins might fetch a higher price than newer or more common ones.
Market Conditions & Buyer Type
The current market also influences the price of gold. If a specific buyer has a lot of gold on their books, they may not be willing to offer as high a price. The buyer’s profit margin can also affect how much they are willing to pay.
Receiving the full spot price of gold is uncommon. In most cases, sellers work with a middleman who needs to purchase the gold at a lower cost to maintain their profit margin. As a result, offers are typically below the current market value.
The price you get for your gold largely depends on who you sell it to. Here’s a guide to help you understand which type of buyer might offer you the highest price.
- Pawn shops (30-60% of spot price)
- Local jewelers (50-70%)
- Online gold buyers (70-90%)
- Refiners (up to 95% for large quantities)
Where to Sell Your Gold
A seller has many options for their gold. There are benefits and drawbacks to each of them.
Local Options
Local buyers are typically the first place most people turn when looking to sell their gold. Examples of local buyers include pawn shops, jewelry stores, and coin dealers.
Pawn shops often have a reputation for being untrustworthy. While they might be the easiest place to sell gold, they usually pay the lowest prices. Pawn shops may employ aggressive sales tactics. They may push someone to accept a lower offer compared to other options.
Jewelry stores, on the other hand, provide a more effective way to sell gold and can offer better prices. However, jewelry stores do have higher operating costs. As a result, they may still not provide the highest prices.
Online Buyers
Online buyers, such as the Alloy Market, are often the best way to sell gold and receive the highest return. Since Alloy has lower overhead costs, it can offer better gold prices. And the whole transaction is secure. Alloy offers free, insured shipping and tracking for all items.
Online buyers also tend to be more transparent about their pricing. They provide a detailed breakdown of the gold’s evaluation. Factors including purity, weight, and the current gold price determine the value. Sellers should expect a quote up front or an itemized receipt showing the calculation. This information helps to make an informed decision.
Refiners and Gold Parties
Someone with a large amount of gold to sell can deal directly with refiners, eliminating the middleman. Selling directly to a refiner can lead to some of the highest payouts. The caveat is that most refiners are reluctant to work with individuals.
Refiners have to process and purify the gold. Individual sellers typically have smaller amounts of gold to sell. Keep in mind, melting and processing gold is costly. Purifying such a small amount of gold is not worth the resources necessary. Refiners will consider the expenses and offer lower payouts.
How to Calculate the Value of Your Gold
Before selling gold, it is essential to understand how to calculate its value accurately. The math is simple, as outlined below.
To begin, determining the purity of the gold is essential. For example, when selling a 14K gold chain at the current spot price of $3,228, it’s important to note that 14K gold is 58.3% pure. The next step would be to calculate the cost per ounce based on this purity level.
$3,228 x 58.3% = $1,881.92
Next, weigh the chain. For this example, assume it weighs 12 grams. Convert the price per ounce into a cost per gram, as markets price gold by the gram.
$1,881.92 / 31.1 (grams per ounce) = $60.51 per gram
Since the chain is 12 grams, multiply the cost per gram by this weight.
$60.51 x 12 = $726.12
The value of the gold chain would be $726.12. However, this isn’t the amount a buyer would pay. The buyer will need to refine and resell the gold, making a profit for themselves in the process. Selling to an online buyer would likely yield between 70% and 90% of the $726.12 value. This payout results in a payment between $508.28 and $655.50.
How to Get the Best Price for Your Gold
When planning to sell gold, the primary objective is to get the best price. By following a few simple suggestions, you have a better chance of securing the best price.
- Compare Multiple Offers: When making a significant purchase, people often shop around to find the best price. It should be no different when selling gold. Multiple offers allow a seller to obtain the highest payout. One of the many perks of using Alloy is that they will match any other.
- Clean the Gold: Gold jewelry covered in dirt, lotion, or grime can appear less valuable during inspection. Use a soft toothbrush and mild soap to gently clean gold items. A little shine can help gold pieces appear more valuable and well-maintained.
- Be Wary of Pressure Tactics or “Bonus” Offers: Some buyers use time-sensitive offers, “bonuses,” or misleading scales to pressure sellers into a quick sale. These tactics almost always lead to lower prices in the end.
- Watch for Fees, Shipping Costs, and Insurance: When deciding to sell online, sellers should look for buyers who offer free insured shipping. There should be no obligation to sell after they appraise the gold (This is how Alloy operates). Reading the fine print is imperative. Some buyers charge fees for appraisals, return shipping, or other services.
How to Avoid Getting Ripped Off
Gold buying has a bad reputation. Many pawn shops and other buyers use shady tactics to exploit customers. To avoid being taken advantage of, there are a few red flags to be aware of.
Lack of Testing In Front of You
When selling gold in person, buyers should test the gold in front of the seller to ensure its authenticity. If they take the items to a back room, refuse to explain their process, or don’t let sellers watch, this is a red flag.
While Alloy cannot test items in front of the seller, their process is transparent. X-ray fluorescence technology and acid testing verify the purity of each piece. Read more about our process in the How it Works section of our site.
Mail-in Services with No Insurance or Tracking
When using an online buyer, sellers need to ensure shipping is tracked and insured. Companies should also provide a clear return policy in the event that the seller declines the sale.
High-Pressure Sales Tactics
Some buyers may encourage sellers to make an immediate decision. They may also try to scare people into accepting a lower price. A trustworthy buyer will allow a seller to take their time. Sellers need to compare offers and make an educated decision.
Poor or No Reviews
Sites like the Better Business Bureau, Trustpilot, or Google for reviews provide insight into a company. A lack of online presence, consistent negative reviews, or unresolved complaints are major red flags.
Final Thoughts: How Much Can You Sell Gold For
The value of gold depends on several factors, including purity, weight, the type of buyer, and market trends. By doing your homework and comparing offers, you can maximize your return and avoid common red flags when selling.
Ultimately, how much you can sell gold for depends on a few key factors: purity, weight, and spot price. Additionally, to whom you sell your gold also plays a significant role. Alloy Market wants to make your gold-selling experience enjoyable.
Request your free Alloy Kit today. Ship your items to us in the postage-paid, insured, and tracked parcel from the kit. We’ll test your gold for purity and provide a detailed offer at no obligation. When you accept, we’ll initiate payment that same day.
Alloy offers the highest payouts on the market. Guaranteed.
