Three Rules To Follow When Selling Gold As An Amateur

Posted on: 19 October 2017

Professional gold sellers have it all worked out. They know how to value a piece, where to get the best price, and even how to time the market to make sure they're paid what they deserve. As an amateur, you don't have the years of experience or expert knowledge to draw on as you try to sell one or several gold items. Many amateur gold sellers end up getting "ripped off," but you don't have to be one of them! Follow these three rules for selling gold so you don't lose out:

Rule #1: Always get several offers.

If buyer #1 says your piece is only worth $100, you have no way of knowing whether he or she is telling the truth -- unless you have another estimate to compare the offer to. So, always get at least three offers before you sell a piece. If they are wildly different, you can conclude that the lowest bidder is probably under-valuing your piece, and you can go with the highest offer. If the offers are about the same, then you can be pretty certain all of the buyers are being honest -- and you can sell to whichever one you choose.

Rule #2: Always negotiate.

The vast majority of people you're selling gold to, whether they are jewelry makers, collectors, or investors, are eventually going to turn around and sell that gold for a profit. So, the price they offered you was chosen with that profit in mind. Many buyers start with a slightly lower offer, figuring that the seller may negotiate. You're losing out if you don't at least try to negotiate a higher price! Ask if they'll give you 10% more than their original offer. The worst they can say is "no," and in many cases, they'll counter-offer with an offer about 5% over the original. So, for example, if they originally offered you $100 for a gold earring, you can ask if they'll give you $110, and they may come back and offer you $105. Take the $105!

Rule #3: Don't be afraid to wait.

The price of gold is always changing. Some weeks, gold is worth $1,300 per ounce, and a week later, it may be worth only $1,100 per ounce. If you don't need the money for anything specific, don't be afraid to wait for the value of gold to go up before selling. Buyers will likely offer you more since they can turn around and also sell the gold for more.