September 2, 2011

Should You Sell Your Gold Jewelry?

With the price of gold so high we are seeing commercials with advertisements telling you to sell your gold jewelry for cash NOW, but should you?

First of all you should ask yourself a few questions.

Is it an heirloom?

Jewelry goes in cycles, what is in style right now will be considered out of date and not so hot in ten or fifteen years. That gaudy gold diamond ring your father wore may not look too attractive now but wait a few years and it will be hot again.

When my husband’s parents passed away I inherited a wide gold bracelet mostly because no one else wanted it. It was considered over the top at the time but I loved it. Now it’s back in style and everyone notices it. “Where did you get that?” “It’s a family heirloom.” If I’d had it melted down we wouldn’t have it now.

The design and look of a piece is often more valuable than the weight of the gold itself. Even if you aren’t into that particular look your kids may love it and it’s value will go up tremendously when it is back in vogue.

Do you need money so bad you want to lose a family memory?

What is it really worth?

Those people on the commercials and the ones giving home parties are not going to give you the full value; they are gold brokers or middlemen. They have to make a profit or it’s not worth it so you are losing money by turning your gold over to them.

If you have decided you really want to part with it and you need the money make sure you are getting the best deal. You need to check around for the best buyer before selling your gold jewelry. Have them weigh it and give you a price. Don't let anyone pressure you into a sell. That is a sure sign they are not giving you the full value.

Will you regret selling it?

If you are having second thoughts and not sure, don’t sell. Once you’ve sold it, it’s gone. They melt it down and there is no buying it back. It might be better to sell it to another family member who won’t have it melted down so at least it stays in the family.