Tags: Money | cash for gold | transactions

6 Things You Didn't Know About 'Cash For Gold' Transactions

By    |   Monday, 15 June 2015 07:44 PM

When gold prices rise and cash is short, those unworn cufflinks and necklaces in the dresser drawer can begin to look like salable assets. But the cash-for-gold trade has more moving parts to it than the simple name suggests.

Keep these points in mind when selling your scrap gold.

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1. Prices Vary
The price received for your scrap gold can, and probably will, vary dramatically based on which buyer you select. "An established, reputable jeweler will generally pay at least 50 percent of the daily spot gold price," jeweler Travis Thornton writes for Angie's List.

2. Know the Value
A 2010 survey of 10 cash-for-gold programs conducted by NBC's Today show, using a single batch of gold jewelry appraised at $450, found the price offered for it ranged from $38 to $393. Get your gold appraised and explained. What does it weigh, and what is its purity in karats? Then check the daily spot price of gold to know its approximate melt value.

3. Mail-in Services
Mail-in services such as Cash4Gold, which spend millions on television advertising, tend to offer less for your gold than in-person jewelers or metals dealers, Bankrate said, citing a Consumer Reports study that found mail-in companies offering between 11 percent and 29 percent of gold's melt value.

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4. Scrap Gold v. Jewelry
Your items may have more value as intact jewelry than as scrap gold to be melted down. A jeweler's appraisal can help determine if the gold content is less attractive to potential buyers than the artistry or reputation of the jewelry's designer.

5. Various Buyers
There is a wide variety of outlets for selling gold: mail-in services, pawn shops, jewelers, gold bullion dealers, pop-up gold-buying kiosks at shopping malls, one-day or weekend gold buys at hotels or convention centers, and even so-called gold parties modeled after neighborly potlucks or Tupperware parties.

6. Poof of Identification
Any gold buyer that doesn't ask you, the seller, for proof of identification is disobeying laws intended to prevent money laundering and fencing of stolen goods. "So if you don't get asked to show your I.D., be warned," ABC News reports. Verification goes both ways. USA Today reminds that any cash-for-gold business you approach should be licensed in your state to buy gold.

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When gold prices rise and cash is short, those unworn cufflinks and necklaces in the dresser drawer can begin to look like salable assets. But the cash-for-gold trade has more moving parts to it than the simple name suggests.
cash for gold, transactions
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2015-44-15
Monday, 15 June 2015 07:44 PM
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