How Much Is My Gold Worth?

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“How Much Is My Gold Worth?” When planning to sell gold jewelry, this question is often asked first. To begin with, there is just no simple and direct way to evaluate the value of gold jewelry. What anything is “worth” is always based on the circumstances. Are you looking to sell the item for quick cash? Are you planning to have it insured? Do you need an estate value for taxes?

Depending on what the gold jewelry is, who’s buying and who’s selling, here are three types of gold jewelry appraisal value methods you should know about.

If you want FAST CASH, for your LOW QUALITY or BROKEN GOLD JEWELRY, you would want to know the liquidation value or SCRAP VALUE.

The most common and most familiar appraisal value in selling gold jewelry is the Liquidation Value or Scrap Value. This type of appraisal reflects the value of your jewelry’s components on the wholesale market.  Generally, a liquidation/scrap value is based on the immediate cash value of your item, and is usually the lowest valuation which means the buyer is buying your gold jewelry for the value of the metal alone. In today’s market, many buyers will not pay anything for small diamonds unless they are very high quality, concentrating only on the value of the gold.
 

The scrap value of gold is often based on the gold market prices and does fluctuate daily. You can use the karat weight and volume of materials listed in the appraisal to determine current market value periodically.
If you take your gold to a reputable buyer with ready cash (such as a pawn broker, jeweler or online gold buyer) that strictly specializes in buying gold you should expect to get 80% to 90% depending on the quality, weight and quantity. If you are offered less than this it is not a legitimate offer.

Related Post: How to Calculate the Price of Scrap Gold

Photo by  Theodore Scott via Flickr

If you want FAST CASH, for your HIGH QUALITY GOLD JEWELRY, you would want to know the ESTATE VALUE.

The Estate Value represents the most accurate value of what your jewelry might cost if you were to find it in a jewelry store for sale on the day it is appraised. The retail value allows you to factor in the aesthetic value of your gold pieces so that you can sell gold for cash at a higher price. Sometimes, the buyer may take into account the craftsmanship that went into making the gold jewelry. Other buyers might consider whether you are selling an antique.
 

To have an idea on how much the estate value of your jewelry is, visit jewelry stores and look at the retail selling price of similar jewelry items being sold. Jewelers who buy jewelry for resale pay somewhat more- about 10 to 20% of current retail value. If your item is something they can easily resell, they may pay as much as 25% of the original retail value. These buyers will pay premiums only for highly desirable items, such as well known brands, high quality items, or items with an immediate market.

Photo by aqsahu via Flickr

If you want the HIGHEST POSSIBLE CASH, for your HIGH QUALITY GOLD JEWELRY and if there is PLENTY of TIME to find a buyer in the most appropriate market, and NO pressure to sell, the value you will probably want to know is the FAIR MARKET VALUE.

The Fair Market Value reflects what a willing buyer and a willing seller would agree to if the piece was put up for sale. Generally, this value will be somewhat below the retail value if the piece was for sale in a jewelry store and reflects what you could reasonably expect to sell it for if you can find a willing buyer, such as on auction sales, eBay or Craig’s List.

If the jewelry is antique, use online auction sites or live auction catalogs to find the selling prices of identical pieces. Use the information gathered to guide the search process. Note that the selling price is also influenced by the trust the public has in the merchant’s expertise. Therefore, it may not be what a you could privately sell (to a person) the item for, but it will give a range.

 

So, you can see it’s not easy to give a simple answer to a simple question like “What is it worth.” it all depends on what your item is and what situation as a seller you are in. Hope this article gave you a realistic idea on the various ways to look at the value of your gold jewelry.