Should you sell your old gold jewelry for gold bullion? Most American own some form of physical gold jewelry, but don’t own physical gold bullion coins or bars. Gold jewelry owners believe that they are investing in gold. Although this is technically true, owning gold jewelry is not the best way to invest in gold. The best way to invest in physical gold is to buy gold bullion bars or coins that trade with the international spot price.
Unlike gold jewelry, which is often priced well above the intrinsic value of its gold content, gold bullion is not. Furthermore, gold bullion typically contains a higher precentage of gold than does gold jewelry. For example, 14K gold jewelry contains 58.5 precent gold. On the other hand, a gold Canadian maple leaf contain 99.99 precent gold. This can be confusing for individuals who buy gold jewelry. Buying a 14K gold chain weighing one ounce is not the same a buying a one ounce gold American Buffalo coin.
What should I consider when you sell gold jewelry for gold bullion?
Before you sell your gold jewelry for gold bullion, it is important to understand the actual gold weight of each piece of jewelry. For example, a 14K gold necklace weighing .25 troy ounces contains .14625 troy ounces of actual gold. A 18K gold ring weighing .55 troy ounces contains .4125 troy ounces of actual gold. To calculate the AGW of any piece of jewelry simply multiply the true weight by the percentage purity of each individual piece. It is simple to do this when you research the meaning of gold markings on the internet.
What price should I expect when selling gold jewelry for gold bullion?
Prior to selling your gold jewelry for gold bullion, you should understand the spread you will pay. The spread is the dollar amount between the sales price of you jewelry and the buy price for gold bullion coin or bars. This spread is often referred to as the bid and the ask price. It is important to be realistic when you are selling your gold jewelry. Don’t expect to get 100% of the spot price for your scrap gold. Their is a cost for refining gold jewelry into pure gold bullion. Reputable precious metals dealers with charge between 10 and 30% for this exchange. If you want to find out more about selling your gold jewelry for gold bullion call New Orleans Silver and Gold @ 504-858-4653 today to set up an appointment today.
