All too often we get customers bringing broken bits of a gold necklace, a gold bracelet clasp, a broken pendant, or any other bits of scrap gold that they believe are worthless because they are no longer in their original functioning state. No matter how damaged your gold is, it still holds huge value! Even gold that appears to be “junk” can hold significant value if you know how and who to sell it to. In this article we will cover the process, from understanding how much your gold is worth, to securing the best price, so you can quickly turn your scrap gold into money.
1. What Is Scrap Gold?
We hear this term often, but what defines scrap gold? Scrap gold refers to any gold items that are destined for recycling and wont be resold in their current form. This can include:
- Old or Broken Gold Jewellery: Pieces that are outdated, damaged, or no longer wearable.
- Gold Coins and Bullion: Heavily worn, or damaged coins and bars can often not be resold in their current form.
- Manufacturing: Leftover gold material from jewellery production or repairs. Including collected gold dust from sanding and polishing.
- Other Items: Gold dental work, or electronic components.
Gold marked as scrap would generally be any item that can not achieve a premium above its weight in gold. For example, a jeweller might choose to scrap an old-fashioned necklace that is no longer in style, opting to get quick cash based on its gold weight rather than waiting for a retail premium that may never materialise.
Why Would You Sell Scrap Gold?
- Quick cash: Don’t bin them! Convert unused or broken gold items into immediate cash.
- Decluttering: Free up space by selling items you no longer wear or use.
- Market Opportunities: Take advantage of the current rising gold prices.
2. Finding The Value Of Your Scrap Gold
Before you rush of to the nearest gold shop, it’s important to understand how much your scrap jewellery is worth. Here are the key factors that determine its value:
Before you sell, it’s important to understand how much your scrap gold is worth. Here are the key factors that determine its value:
a. Gold Purity and Carats
Gold purity is measured in carats (karats internationally), 24ct is gold in its most pure form, also labelled as ‘999.9’. Scrap gold in the UK will come in various carats depending on its source. Scrap gold jewellery in the UK is often seen in 9ct but can be seen up to 22ct, where as dental gold can range between 12-18ct.
Identifying the gold purity of your scrap can be difficult as broken bits of jewellery may not feature hallmarks. This is where you need a professional scrap gold buyer to test the items for their exact gold content. If hallmarks are visible use online hallmark guides to decipher their meaning.
b. Gold Weight Matters
- Grams and Ounces: The weight of your gold directly influences its value. Even a small difference in weight can have a significant impact on the final price.
- Accurate Measurement: Use a precise digital scale or have a reputable dealer weigh your items accurately. Kitchen scales can give you a guide, but these can not be relied upon to be 100% accurate as they are likely not calibrated well.
c. Gold Price Per Gram
- Spot Price of Gold: The current market price (spot price) is crucial. This fluctuates constantly based on global economic conditions as well as supply and demand oi.
- Timing: Understanding market trends can help you decide the best time to sell.
3. Preparing Your Scrap Gold for Sale
Preparation is key to ensuring you get the best price for your scrap gold. Follow these steps:
a. Organise and Clean Your Items
- Sort Your Gold: If you can identify the purity of each item, separate them into carat groups. This will help you understand and follow the pricing better when it comes to sell.
- Gentle Cleaning: Dirt can gather in hallmarks, if hallmarks are present, a light cleaning can help remove dirt and oxidation and make them more easily visible. Use mild soap and water, avoid harsh chemicals that might damage the gold.
b. Get A Professional Appraisal
- Get an Expert Opinion: Before selling your scrap gold get a professional appraisal, this is usually done as part of the selling service but having an appraisal then allowing yourself time to consider your options before selling is a wise move.
- Multiple Appraisals: When it comes to selling any valuables, its always recommended to obtain multiple offers from various scrap gold buyers.
4. Finding a Reputable Gold Buyer: Local vs. Online Options
When it comes to selling your scrap gold, your choice of buyer can make a significant difference in the outcome.
a. Local Dealers and Jewellers
- Face-to-Face Interaction: Local gold buyers often offer in-person evaluations, which can lead to more transparent transactions and provides the opportunity for you to ask questions.
- Immediate Payment: Local cash for gold dealers may provide instant cash, allowing you to walk away with money on the spot.
- Reputation Matters: Look for established, reputable businesses with positive reviews and clear policies.
b. Online Buyers and Platforms
- Convenience: Selling online can be easier if you don’t have many local options, and can allow you to quickly obtain multiple offers.
- Competitive Pricing: Online platforms can sometimes may offer competitive rates due to lower overhead costs.
- Security Considerations: Ensure the website is reputable by checking customer reviews, association membership such as NAJ, and secure payment options.
c. Comparing Offers
- Get Multiple Quotes: Don’t jump into the first offer your receive. Request quotes from several scrap gold buyers to compare pricing. You can also bring online offers to local businesses to see if they can compete.
- Understand the Fees: Some online buyers may charge postage or payment fees. Factor these into your final offer.
5. Negotiating the Best Scrap Gold Price
Once you’ve chosen a buyer, negotiation becomes crucial in securing a fair price for your scrap gold. Gold buyers are recycling the metal purchased, although margins are small in the sector there is still room for movement.
a. Be Informed
Know the Numbers: Be equipped with an understanding of the current spot price of gold. Remember the gold spot price is the price of pure 24ct gold. So if the gold spot price is £70 per gram, and you want to know what the spot price for 9ct gold is, take the £70 and multiple by 0.375 (37.5%) as 9 carat contains only 37.5% pure gold. So the 9ct spot price would be £26.25.
Use Appraisals: Bring any professional appraisals with you to support your asking price. Remember insurance valuations are not a representation of scrap value, these prices are usually high end retail prices.
b. Ask the Right Questions
- Pricing Details: Don’t be afraid to ask the gold dealer how the offer is calculated. Ask what the price per gram offered is.
- Payment Method: Confirm whether payment will be in cash, bank transfer, or another method, and establish if there is any fees attached to each.
- Additional Costs: Clarify if there are any additional fees or commissions.
c. Stay Firm Yet Flexible
- Set Your Minimum: Have a clear bottom line in mind, but be open to reasonable negotiation as the business still needs to make a profit.
- Don’t Rush Your Choice: Take your time to evaluate your gold offers and avoid feeling pressured into a quick decision.
6. Avoiding Scams and Red Flags
As with any sector dealing with high value goods, the gold selling market can attract unscrupulous buyers. Protect yourself by watching out for common scams:
a. Too-Good-to-Be-True Offers
- Advertising Spot Prices: Be careful not to confuse spot prices with prices offered, some online buyers will display spot prices instead of their actual prices paid.
- Pressure Tactics: Avoid buyers who pressure you to make quick decisions without proper evaluations.
b. Lack of Transparency
- Hidden Fees: Ensure that any fees are clearly communicated upfront. Hidden charges can significantly reduce your profit.
- Unclear Policies: Reputable buyers will provide clear, written terms and conditions. Especially with regards to online buyers returning your scrap if you are not happy with an offer.
- PO Boxes: Avoid sending gold to PO Box only addresses, choose a buyer with a physical advertised business address.
7. Final Thoughts: Turning Scrap Gold into Cash
Selling scrap gold can be a lucrative opportunity if approached with the right knowledge and precautions. At Cheshire Gold Xchange, we offer both an online and high-street selling service from our store in Cheshire. We understand the process of selling gold needs to be handled with transparency and professionalism. We are a 5 star rated gold buyer, and offer high pricing both in-store and online.
Remember selling your gold for scrap doesn’t mean you are getting a low price!
