A jewelers perspective on the cash for gold craze
Is there value to consumers in the ubiquitous cash for gold promotions? Though the advertisements of these offers are tempting, how many of them are genuine? An industry expert gives 5 tips on how not to get ripped off on gold jewelery
THE MEDIA recently has been flooded with advertisements encouraging consumers to cash in on their gold jewelry. Even sign-swingers can be seen on busy street corners waving passerby into pawn shops with the promise of "top dollar" for gold chains, class rings, outdated-looking pendants, etc.
Unfortunately, as per MarketWatch.com, a business news website, consumers may get gored on gold prices. There have also been many complaints and cries of scam posted on the Net. Certainly sellers need to be wary of being short-changed. With the price of gold hovering close to $1,000 an ounce, what exactly does "top dollar" mean and who makes the determination?
According to Ron Hansen, GoldAndGems.com, "If one is financially strapped and truly needs to convert their jewelry to its cash value, the best bet is to take the items to a local jeweler."A full-service jewelry store typically is a member of the Jewelers Vigilance Committee (JVC) - the industry's guardian of ethics and integrity.
Here are JVC's tips for selling gold jewelry.
- Choose a reputable jeweler, someone that’s known to you or has been recommended by a trusted source. Preferably, select a jeweler that’s a member of the Jewelers Vigilance Committee.
- Set off on your expedition with reasonable expectations. When you bought the jewelry you paid for more than the value of the gold. The price included labor, packaging and the retail mark-up of the item. The jeweler will only pay you for the actual gold in an object. Since gold is always blended with other metals to make jewelry, expect that a substantial percentage of the object is made of something other than gold.
- Don’t expect to be paid for the non-gold component of the jewelry. The jeweler may conduct a test to determine how much gold is in the jewelry – known in the trade as its "karat fineness." This is called a "scratch" or "acid" test. Expect the jeweler to actually scratch the gold to conduct the test.
- The price offered to you by the jeweler may not be the market price of gold that day. Prices are not regulated, so the parties are free to negotiate a price that’s acceptable to both sides.
- Bring a form of government issued identification. Some jewelers are also required by anti-money laundering laws to obtain seller identification
With rare exceptions, it’s unlikely that the weight value will come anywhere close to the original cost of the item. If you’re not cash-strapped, but simply tempted by the relentless media push to empty your jewelry box, then ask yourself if you truly want to sell something as scrap that at one time held some sentiment for you. Talk to your jeweler about redesigning or refurbishing your outdated treasures.
A certified jeweler is highly skilled at appraisal, design consultation, model making, carving, metallurgy, filing, burnishing, polishing, gem-setting and much more. With a fine jeweler’s touch, almost any unwanted jewelry becomes valuable again and saves you the hassle of selling your old gold jewelry.
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