Selling Gold for Cash – My Experience

You have probably seen tons of advertisements from place offering to buy your gold the past few years since the price of gold has skyrocketed. These ads made me wonder how much I could get for a couple of small gold rings I had, but I never did anything about it because I doubted the rings were worth much. The other day I saw an ad with a coupon offering $10 for getting your gold evaluated whether they buy your gold or not. Since the store was close to my gym I figured it would be worth walking over and getting my rings evaluated.

The cash for gold place I went to was a jewelry store. When I went in I was directed to a desk to get my gold evaluated. The jeweler first tested my gold with a magnet too make sure it wasn’t just gold plate. The rings passed that test, which I wasn’t sure that they would. He then looked at the rings with a loupe and found that they were marked 10 karat. That is the lowest grade of gold there is, but at least the rings weren’t just gold plated. He then rubbed the rings on a stone and put a drop of solution on the stone which confirmed the rings were 10 karat gold.

The jeweler then weighed the rings on his scale. Unfortunately, they were very small and lightweight rings and only weighed 2 grams together. I was offered $20 for the rings plus the $10 bonus for the coupon and I accepted. It seemed like a pretty good deal since I wasn’t going to be using the rings anyway.

I later did the math and it was a fair offer. At first glance it didn’t seem like a good deal. After factoring in that there are 31.1 grams in a troy ounce and 10 karat gold is only 41% pure, the price I received for my gold was fair. I probably should have done the math before selling the gold since I couldn’t have done much after selling it if I didn’t get a good deal. Since it was such a small amount I wasn’t too concerned.

It seems that selling any gold you have laying around can be a pretty good deal. Especially if you have a coupon. Has anyone else tried selling gold?

14 thoughts on “Selling Gold for Cash – My Experience”

  1. Thanks for sharing how it went for you; I’ve always wondered how those places were!

    I don’t own any gold so have never had the chance to trade any in. I think gold has lost itself with the younger generation.

  2. Most of the time gold selling places will give you a poor price. They make money on the spread between buying and selling. So for example if the spot price of gold is 1,500 per oz they’ll buy from you for like 1,300 and sell to you for like 1,600.

    So your bottom line is that you’re better off arranging a private sale to someone who will give the full value of what the metal is worth. Avoid the cash for gold people – their business model means you get jacked.




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