Cash for Gold
Posted by Gail | Filed under Smart Shopper
With the January bills rolling in the door, you may be trying to find ways to cover your December indiscretions. You’ve seen the ads on TV promising big bucks for your “used or unwanted gold.” You may even have been tempted to run to your treasure chest and haul out that old wedding ring to stick into an envelope and convert to cash. Hold your horses Hannah.
A lot of people are under the impression that jewelry is an appreciating asset, citing the fact that “gold is up.” This delusion isn’t restricted strictly to Princesses; there is a whole bunch of seemingly sensible people who will drop big bucks for bling justifying their spending with “it’s an investment.”
You might be surprised at the reality if you ever decide to cash in. The gold in them thar rings ain’t what you might be supposin’. Ditto your diamonds, and whatever else “precious” you might be considering an asset.
So what if you’ve just inherited a boxful of dazzle that you won’t ever wear? You can sell it, sure. Just be smart about where you sell it, and realistic about what you’ll get.
First, skip the melting pot if you’re trying to get the most for your jewels. The scrap price is based on the value of the gold alone; it doesn’t reflect the craftsmanship, aesthetic or antique value of the pieces you’re selling. Since old jewelry is worth more in it’s normal form than melted down, avoid the guys who offer to send you those envelopes and return you enough money to head off on vacation. An 18-karat ring may have just six grams of gold, so it’ll be worth only about $200. But that’s not what you’ll get. Nope, a re-buyer will offer you less than half that amount so you might be looking at about $70. Their promises of top dollar have also been called into question.
‘Course, if the jewelry is a garden-variety wedding band, a piece that is broken and can’t be repaired or the mate of a lost earring, then scrapping it may be your only alternative. In that case, make sure you know the value of the gold before you head off to sell it.
The price of gold is based on a troy ounce of 24-karat, which is “pure” gold. A troy ounce contains 31.1 grams, or 20 pennyweights and you can find the current price for gold www.goldprice.org. Since most gold is less than 24K, you’ll have to discount the jewelry accordingly:
- 18K is 75% pure gold
- 14K is 58.3%
- 10K is 41.7% gold
Head to a jeweler or a pawnshop to sell the jewelry intact and you might get between 25 and 50% of what you paid for the jewelry in a store. Even if you have an appraisal you won’t get the amount the jewelry has been estimated to be worth since the appraisal is for the retail value. When you’re reselling, the buyer deducts the retail markup.
Shop your jewels around, particularly if you’re selling diamonds. Prices vary dramatically and you could clear a lot more just by getting several quotes before you sell.
High-end jewels – think Tiffany or Cartier – will likely do much better through a private sale since you’re looking for a buyer who is as impressed with the name brand as you were. Consier an auction house like dupuis.ca or waddingtons.ca where you’ll pay just commission on the sale price at auction.
One of the reasons I tell people not to put their “precious” collectibles on their net worth statements is because what’s precious to one person isn’t to another, and all that sentiment you may feel doesn’t hold any value for a buyer. So when you talked your fiance into dropping ten big on a diamond to prove his love for you, he was really proving his willingness to blow money to make you happy.
January 19, 2010 at 7:27 am
I guess I shouldn’t feel bad about never having received an engagement ring, and only a simple gold wedding band, then!
January 19, 2010 at 7:37 am
Nice look at the cash for gold market today Gail. I hope you’ve woken some people up to the scams that are out there.
Personally we just have our wedding bands an engagment ring and a necklace. In total everything cost us around $2,500 to acquire. I doubt I’ll see that money again, and I don’t think the jewelery will ever be sold. too much sedimental value on it.
regards,
Jason
January 19, 2010 at 8:07 am
I did sell a bunch of old gold pre Christmas when the price hit $1250. It started at a gold party my wife was invited to and I tagged along to see what it was all about, I did some research before arriving and flattly turned down what was offered at the party, hit up the local jeweller and sold it for 25% more then offered. The second round I found some more unwanted in our SDB and almost doubled the offers out there just by shopping around. Take a look around and don’t be pushed by the first guy to flash a few bucks.
January 19, 2010 at 8:12 am
I’ve wondered about those commercials and how those deals worked. I couldn’t understand anyone sending off their gold and waiting for payment – that particular arrangement sounds nutty.
I had a lovely engagement ring, but when I lost a lot of weight 5 years ago I didn’t get it resized immediately and one day it slipped from my finger. I talked to my insurance company about replacing it and that was no problem. Between the deductable and then then higher premiums we’d pay for several years afterward I decided not to replace it. A replacement ring would just be pretty jewelry, but without the sentimental value.
I’ve carried on with just the plain wedding band, which if you think about it is the one that means anything. Just passed our 25th aniversary last summer, so apparently no harm done!
January 19, 2010 at 8:40 am
Thank you for clarifying this ‘program’ Gail. I couldn’t wrap my pretty little head around how this would actually be a decent benefit to anyone.
I’m glad I’ve gotten over my quest for gold & pretty things a long time ago.
I have 3 customer pieces that I treasure and a few other items that are very versatile. When I’m drawn to pretty things that are not costume, I remind myself of the pieces that I DO have and enjoy very much. I don’t need more diamonds or gold to feel of value. At one time, I think it made me feel more special. Thankfully, I have more ’self worth’ now.
When I get the urge for a pretty diamond I just can’t justify the cost. I have other places I’d rather spend that kind of cash. With today’s man-made diamonds, why would you want to spend so much? Does anyone REALLY know at first glance, the difference between a quality diamonelle and a real diamond if set in real gold? A relative has what I thought was an impressive 3 diamond ring that likely would retail for between $2500 and $3000, I was shock to find out it was diamondelle set in white gold ~ and I know my jewellery! That ring made me think twice about an expensive diamond.
January 19, 2010 at 9:07 am
Glad your clarify that thing Gail,
Not that I have any gold for sale, but I was really intrigued by this new craze. Especially with the $mart add bluntly targetted at your princesses that offer to trade their jewellry for boots…
Are we witnessing the emergence of the next financial bubble? It seems advertising might be telling us way more than usual for now on… When main street is aimed on a large scale… you can pretty much guess Wall Street has gone at it again. No?
January 19, 2010 at 9:56 am
I just sold a bunch of stuff last fall to a coin and collectibles store — stuff I don’t wear and have been lugging around since my teenage years. Nope, didn’t get a huge amount ($770) for it but I’d rather benefit from it now than leave it as part of my estate.
What I learned from the experience is how cut throat selling is. So the next time I think about buying jewellery, I will be buying it because I am going to wear it and love it, not because it is going to help me pay my bills someday, because it likely won’t bring in the type of money you think it should.
January 19, 2010 at 10:01 am
My late mother was quite the consumer. Often buying things on credit. Often buying us, her kids, things we really didn’t want or need. Often ‘convincing’ my dad to spend money he would’ve rather not spent.
One of the things he bought for her was a gold ring with pearls. It was what she wanted. It was a christmas gift. He even went the extra bit and had one designed for her. He spent a lot of money for it, and, in the end, she never liked it. She never wore it. And it couldn’t be returned.
Years later, when she was fighting cancer, she gave me the ring and told me to sell it and use the money towards whatever I needed. She felt it had enormous value. My dad often talked about how he ’spent a lot of money on that ring’. I was told not to tell my dad I sold it. I did take it to a jeweller to get ‘valued’ for sale, and I never had the heart to tell her it wouldn’t even give me enough money for a nice evening out. I kept the ring as a reminder to never pressure my husband into buying me jewelry.
In my opinion, the value of jewelry is truly in the eyes of the owner. No one is going to give you what you think it is worth, and those commercials trying to convince people of the hidden wealth they have in their jewelry boxes are quite simply a rip-off. Are consumers really that gullible ? Hmm… perhaps we ought not answer that.
January 19, 2010 at 10:13 am
I never understood those ads-clearly the buyer has lots to gain, or why would they bother going through the exercise? I laughed particularly hard at the Money Mart ones that came out recently-you get your cash instantly so you can go and buy a new purse or pair of boots. How ridicuous!
I’m glad I’m not a jewellry person. I wear costume jewellry regularly (mostly gifted to me by more fashionable friends and family). I have my modest (but lovely) engagement ring, simple gold wedding band, and some pearls that have been given or left to me by relatives. I watch my MIL spend gobs on expensive but useless costume jewellry from The Shopping Channel and shake my head. I know one day I’ll be charged with getting rid of it all somehow, and I know it won’t be worth a fraction of what she paid for it.
January 19, 2010 at 10:43 am
My friend recently sent in her gold, thinking she would get enough to “go on vacation”. She sent in numerous pieces and received $82. She was angry but didn’t want to go through the exercise of getting her jewelery back, so she lost it all. $82 wouldn’t even get you a pair of nice boots. Don’t bother!!
January 19, 2010 at 11:36 am
But that Oliver seems like such a genuine fellow!!
My wedding band cost 190$. Which was a very good thing – I never wore a ring before _or_ after. Because I lost it promptly months after the wedding. The husband was a keeper though. That was the end of rings for me heh.
January 19, 2010 at 11:36 am
A while back (maybe 10 years ago) I decided to clear out my jewelery box and sell my broken and unwanted old gold. To the streets of downtown Toronto I went and I was shocked at how little they were offering. In the end I did sell a bit of it for a few $10 bills, but kept the good quality quarter carat diamond that they were willing to buy for $100 (originally purchased for $1500). In the end I sold the diamond privately for a decent amount. Definitely, I’d recommend private sale of jewelery rather than giving it away to any “cash for gold” buyer.
January 19, 2010 at 12:35 pm
Interesting post. I don’t have any gold to sell. I only have things I plan on keeping, but I was interested in those commercials and wondering how they worked!
January 19, 2010 at 12:43 pm
I lose more jewelry than I buy. Now I only buy costume jewelry and my son usually breaks a new necklace within a week. Glad to say I will never be tempted to sell my gold.
January 19, 2010 at 12:44 pm
Just have to chime in that my good friend recently took in a few old gold necklaces that were so kinked and never to be worn and some other items in to her local jeweler and walked out with $700 cash IN hand … so … it *can* work …. but again .. only if it’s things that you’re absolutely NOT using!!
January 19, 2010 at 12:50 pm
I’m glad you focused on those commercials. I didn’t trust the idea they were pitching.
I’ve never been attracted to gold or diamonds, I like silver and sapphires, amethyst and unusual stones. For me jewelry has always been about the design not the materials. I have only two gold rings and bought them because of their design not their value, with the bonus that I got both on sale.
I don’t like the idea of having to worry about jewelry being stolen, and whats the point of having it if you keep it locked up most of the time. If you really love something you should use it as much as possible.
January 19, 2010 at 1:39 pm
When I got married my granmother gave me a gold set with Rubies and diamonds(indian style 22k) I haven’t worn it yet and it sits in the safety deposit box. I had told her that it wasn’t necessary for her to give me gold. But she insisted (and she was emotional). She said it was tradition but also that in her day, back home, when a woman married they didn’t own property and it was taboo for a woman to go out to work, they depended on the men in their lives for everything, so that gold on a wedding day was a financial security net for her generation and those before her. She saw it as an investment in my future.
Obviously my generation has more investment options but I don’t plan on ever selling her gift for money, regardless of the amount, because of the sentimental value.
January 19, 2010 at 1:44 pm
My boyfriend loves fancy metals. He bought me a ring made of Tungsten Carbide. I believe it’s the strongest or maybe heaviest metal out there (not sure). It’s a gorgeous ring, and it’ll never scratch, nor will it ever lose its shine. Best part, he payed a total of $20 for it (includes shipping) from ebay.
January 19, 2010 at 2:04 pm
I work in an institution that wil buy gold from people, as it was mentioned earlier people whom are willing to give up thier gold for petty amount of cash they will receive must rethink it over… what people do not seem to understand is we pay only for the gold after it is melted down,,, which turns out to be usually a size of a penny if you are lucky,,,,, people beware,,, if you need money that badly,,,,, give up a pack or two of smokes for the week, and a case of beer… seriously ,,,
January 19, 2010 at 3:07 pm
How timely. I have rings – my own and inherited from my Mom and grandmother. I’m very sentimental so would never get rid of them.
I could never wear my Mom’s gold charm bracelet as it was loaded – too heavy and cumbersome. I had bought many of those charms years ago. I went to the Canadian Gold Exchange Inc. I knew beforehand I would receive very little. I had checked things out with my very honest jeweler. I kept all the sentimental charms (I especially love her first wedding ring…she almost wore it out and had to get another), sold the rest and got more than I thought I would. I can now wear the bracelet and enjoy it.
Along with selling some of my dolls (pristine quality) and my Mom’s dolls (same) I paid down debt, but, saved enough for me to get the pearl necklace I told you about yesterday. And yes, I will wear it and enjoy it.
January 19, 2010 at 4:13 pm
I don’t have any gold.
The only expensive piece of jewelry I have is my engagement ring. Which has a very relevant story to today’s blog post……
So this was not the first ring that he bought (i.e. a previous failed engagement). So when it came time to get me a ring several years later he went back to the jeweller and exchanged it to put towards the cost for another (and much prettier) ring. He got pretty much what he paid for it originally. Pretty sweet deal (especially for me *cough I’m not a princess*).
January 19, 2010 at 4:19 pm
Rebecca – That’s great! I think that our wedding rings should not cost a fortune…I don’t want to think it should be in a safe.
January 19, 2010 at 5:31 pm
Wow! Just in time, since I was thinking of selling my old gold jewelery. Most was bought a long time ago and by my mother who has extremely different tastes from me. She even bought me more last christmas which I find irritating at how much she paid for something I don’t want to wear. I would like to get rid of almost all and only have my one pair of earings, 2 chains and 2 rings, one set for going out and one for everyday. From what I have read from Gail and everyone else here I think I’ll research this too and try the pawn shops etc…until I get the best price.
Thanks for the info everyone!!!
January 19, 2010 at 6:17 pm
I don’t have any jewelry that would be worth selling, other than my old engagement and wedding rings… I’m not sentimental and I’m very much over my ex, but I wouild rather hold on to them and maybe have the gold and diamonds reworked into something for my daughter.
One thing that occurred to me when I first saw those gold commercials was how many dishonest people would send in stolen and otherwise ill-gotten jewelry? At least most pawn shops track jewelry when they’re brought in.
January 19, 2010 at 6:24 pm
Like the previous readers, I’m very glad that you touched on this subject Gail.
As one who enjoys jewelry, but gave up purchasing all diamonds and gold in the name of frugality as I no longer could justify the expense for such minute things, I only shake my head everytime those “gold for cash” commercials are aired.
The sentimental value of your peices is something that is IRREPLACEABLE. There truly is no “fortune” to be gained by selling your peices, as they will obviously not be worth what you initially paid for them.
If I can offer any advice to those who desire to sell, it is to do so through Private sale in order to avoid the distress and affrontery associated with crooked pawn shops and brokers.
Remember: the truly beautiful things in life are PRICELESS.
January 19, 2010 at 6:30 pm
I have my diamond engagement ring and a custom made wedding band to fit with the engagement ring. Now that I am getting divorced I have no idea what to do with it. I know that it wouldn’t be worth much if I traded it in, so it sits in the jewelry box, never to be worn again. Maybe I will shop around and see if I can get a fair price somewhere…they didn’t cost more than $800 originally.
January 19, 2010 at 8:01 pm
I sold a bunch of broken and mismatched gold at cash converters…i was never going to wear the pieces that were still intact and the broken or one remaining earring of a set was just sitting in a tangled mess…I got several hundred dollars and was quite pleased (both times I went in I had a “minimum” amount in mind and both times I got more!)…so really, if the stuff is broken and / or is something you’ll never wear again try cash converters…you might be pleasantly surprised…I certainly was:)
p.s. I would never mail it in though…I don’t trust that at all…even for my broken stuff…it’s still worth something
January 19, 2010 at 8:14 pm
Most of my jewelry is silver, bronze, glass, enamel, and semi-precious stones. I always go “oh, shiny” in front of pieces that cost five- or six-digit sums, but I’d never want to own one. I sell pieces privately when I don’t wear them anymore, and as the sums involved are not large, the re-sale value isn’t too bad.
There are a few pieces of jewelry that are heirlooms, and I would gladly give them for free to someone who’d actually wear them. Keeping them at the bottom of my jewelry box is such a waste.
January 19, 2010 at 8:17 pm
Jewelry is expensive and worth very little for resale, especially for just the metals – best thing to do is try and go back to the jeweler it was originally purchased from and “trade up” if you have a piece you don’t like and want to get something else. Many of them will give you credit for the retail price you paid for the original piece. I’ve stopped buying jewelry too as the insurance to cover it is a big expense and I don’t like worrying about theft/loss/breakage. I stick to mostly silver jewelry now, the little bit that I do buy.
January 19, 2010 at 8:56 pm
I sold some gold and diamonds about 1.5 years ago and got, at best, 10% of the value. This was after going to at least 10 different buyers and comparing prices. It still might be worth it if the jewellry is just collecting dust, and has absolutely no sentimental value. But when buying, I think it’s important to remember that you are likely to be disappointed in the resale value.
January 20, 2010 at 12:04 am
I recently sent some scrap gold and received cash….a whole $48.00. I looked up the info on the website (from a popular commercial), stuck my gold in a baggie and weighed it on my kitchen scale. The amount that they said on the site was EXACTLY the amount I received by cheque in the mail. I was very pleased. This was just for broken bracelets and chains that were not worth having repaired. $48.00 is $48.00 and better in my pocket than cluttering up space in a dresser drawer !!
January 20, 2010 at 12:37 pm
Judi Says:
January 19, 2010 at 6:30 pm
I have my diamond engagement ring and a custom made wedding band to fit with the engagement ring. Now that I am getting divorced I have no idea what to do with it. I know that it wouldn’t be worth much if I traded it in, so it sits in the jewelry box, never to be worn again. Maybe I will shop around and see if I can get a fair price somewhere…they didn’t cost more than $800 originally.
———————–
Judi — don’t expect to get more than $100. I had an engagement ring which was purchased for $700 and when I asked around no jeweler wanted it or said they would barely give me $100. Eventually I sold it on Ebay for $155 US. You may want to sell it on Ebay and set a minimum price as to what you want for it.
January 22, 2010 at 7:17 pm
Thanks for the excellent article!
January 22, 2010 at 11:49 pm
It is a timely article, given all the TV ads proclaiming Top Dollar for your cast off gold.
I do take offense, Gail, tho’ at yet another snide comment regarding luxury brands.
I am not certain why you feel the need to deride luxury brands, but in this case you simply cannot compare jewelry from People’s to jewelry from Tiffany, Birk’s or Cartier and insinuate that people only purchased from those expensive stores because “they were impressed by the name brand”.
I expect most people who own jewelry from a high end store has something worth passing along, something cherished, not rolling around at the bottom of their sock drawer waiting to be traded in for a new pair of boots.
January 24, 2010 at 12:04 am
I have to say that the cash for gold type of services really isn’t for everyone but it was for me. I had these two really ugly pieces that I never wore and never wanted to. I almost tossed them in the garbage when I was cleaning out but remembered the commercials. I sent them in and got far more money than I would have had I thrown them in the garbage. It really isn’t a way to make money that is for sure.
January 24, 2010 at 7:21 pm
A couple years ago I sent in some scrap gold that had been taking up space in my jewellery box for many years (broken chains and bracelets, cheap rings I’d never wear again, solo earrings that lost their mates, charms) and I received over $800 for it. Sure, I know I didn’t get anywhere near retail value but it was all just junk collecting dust so having $800+ in my pocket was much better for me.
January 24, 2010 at 10:51 pm
Years ago, I went to see that annoying man in the tv commercials in Toronto with a piece that was custom made, had a huge chunk of Cdn opal (contains more green than ’standard’ opal), and had some small diamonds and sapphires. He looked at it, gave me a price of about $100. I asked about the gems – “We don’t buy gems, just gold”. So, do I get my gems back then? “No, once we buy it, we buy it all.” Needless to say, I walked out of that store with my piece. I didn’t expect to get the appraisal value ($3,500 IIRC), but $100??? What a scam artist! This is simply taking advantage of people in dire straits. (When one of his commercials comes on, I either mute or change the change.)
My ex was an antique dealer, specializing in jewellry. He gave me many pieces over the few years we were together. I’ve sold a few, but the best part was using the diamonds in my old wedding ring for my new wedding ring. Both my (current) husband and I said it held no emotional value, so that why spend the money buying new diamonds for my wedding band, when there were perfectly usable ones in my jewellry box!
If I want to sell a piece of jewellry (that’s in good, wearable condition), I take it to a jeweller in my town that I trust. At least I won’t get shafted because they “don’t buy gems”. They take the entire piece into account, not just the gold.
April 21, 2010 at 2:36 pm
They say: “Mail us your gold and we’ll send you back the cheque.” First of all this process takes time. Second, why would anyone sell anything to someone without knowing exactly how much one gets? It’s just the hype, and of course people get disappointed in the end.
I buy gold at Bathurst and Bloor (Toronto Gold.) My clients sit in front of me and see the testing process, they see how much their gold weighs, I give them a price that no one else gives because it’s my business how much I pay – not some manager’s in U.S. I always ask how much the client was looking to get, and most of the time we come to an agreement that suits both. I pay cash on the spot.
When looking to sell your gold go to local shops. Find the nearest or just come to Bathurst station and walk about a hundred meters south, past Honest Ed’s. That’s where I sit inside of Willow Books store.
May 30, 2010 at 9:35 pm
Is there a way to sell my old diamond jewelry for cash? I live near philadelphia so anywhere around there. I have heard of pawn shops but I have never tried to do anything like this before. Even if I wanted to sell my jewelry over the internet, I would have no idea any information buyers might ask including the weight and carot.
March 21, 2011 at 6:06 am
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