Last Updated on Feb 28, 2020 by James W
Did you know that there’s probably a small fortune hidden away in your drawers? I’m talking about your gold of course, a highly sought-after commodity that in its purest form represents wealth.
The value of gold is incredibly volatile. It’s exact worth changes by the minute, and the worth of your jewellery today may be completely different to what it’s worth tomorrow.
One thing is for certain though; gold’s value has risen dramatically over the last two decades. For those looking to make money off of their jewellery there’s never been a better time to trade in your unwanted gold.
This is why we’ve seen a rise in gold dealers and services offering cash for gold. Chances are that you’ve seen one of these many services advertised, either online, on your TV or out and about, and perhaps you’ve even sent away some gold to be evaluated yourself.
Most people understand their gold is valuable, but don’t quite know what to do with it. Whilst some may want to sentimentally hold onto it and pass it on to future generations (a perfectly rational decision), others may want to sell the gold but are unsure of where to even begin.
High Street Jewellers
With gold prices on the rise, many jewellers and pawnbrokers have begun offering gold evaluation services that allow you to have your gold weighed and priced whilst you wait in the store.
This is probably the biggest advantage of trading within an actual store. The fact that the merchant will carry out the evaluation under your very nose adds an element of face to face human interaction that promotes trust, and helps you to make sure you know exactly what’s happening to your gold at all times.
Walking into a store also allows you to get an on-the-spot price for your gold, meaning that you’ll get exactly what you’re quoted if you trade it there and then. This is a service that some online traders do not offer, which means that the price you’re quoted when you send away your gold may differ from that you get when the company receives it.
This heightened level of trust brings with it a major disadvantage though; the cost of keeping the premises and employing the jewellers, as well as higher insurance. These increased expenses often mean that high street gold buyers are not able to offer the higher prices promised by many online dealers.
The fact that jewellers and pawnbrokers offer a gold buying service, and are not in direct competition with dedicated gold traders means that they’re not under increased pressure to offer the most competitive prices when compared to their online counterparts.
Online Traders
Getting your gold evaluated by an online source has its fair share of risks and advantages. Online dealers face a lot of competition, and therefore their prices are usually much better than the high street stores. This is also partly due to the fact that they don’t have to devote money to renting a store and hiring employees, and thus have more to spend on acquiring gold.
The risk here comes from sending the gold. Some companies offer specially marked envelopes, which can act as beacons for thieves and be reduced from the overall cost of your gold. Most would agree that when it comes to sending valuables the more inconspicuous the package the better.
Before you send your gold anywhere you should ensure that you’re sending it to a trustworthy and reputable institution. When looking for testimonials, seek out independent statements instead of those on dealer’s website. If it’s said by an unbiased party then it’s likely to hold more weight. When browsing dealer’s sites you should also check whether they’re part of any recognised associations.
In terms of securing a fair price, you should check whether the price your being quoted is fixed upon quotation or fixed upon receipt, as the former means that you’re guaranteed the price agreed even if the gold devalues by the time your dealer receives it.
It’s worth remembering that the gold market is incredibly lucrative and competitive, so don’t be afraid of shopping around and collecting together various valuations before you commit to trading in anything.
Author Bio:
This article was written by Goldealers, a BJA Gold Standard registered retailer, offering some of the best prices for Gold in the UK and Europe.
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