The business models adopted by most gold-buying companies are quite simple: they buy the gold, melt it down, and then trade it for profit. Therefore, when you plan to sell any of your gold pieces, the first thing to consider is the variance between its actual retail price and its value after the merger. The retail price of your gold is its cost if you were to buy it from a real store. In all likelihood, you may be offered a fraction of this price.

In an article titled “Selling Gold: How Much Is That Old Ring Worth Now” for CNN Money, Jessica Dickler wrote on July 20, 2011 that whether she’s selling gold to buyers online, at a neighbor’s gold party or at a jewelry store, it is important to note that the value of your gold jewelry will vary widely.

Today there are a number of options available if you are eager to sell gold.

1. Your local jewelers

The easiest option is to simply take your gold pieces to a local jeweler in person. Even if it happens that you don’t want to sell or can’t sell, it could be a great method to get your pieces valued. If necessary, go door to door and negotiate on the spot.

2. Postal Gold Websites

With this option, you receive an online quote; you then submit your gold for verification, after which they make you an offer. Unfortunately, not all gold dealers have a great reputation. In fact, some of the ones that seem most convenient may also be the least scrupulous. So before you rush to sell that family heirloom, take a few precautions by doing some background research. Australian law under the Banking Act 1959 requires all gold dealers to be registered. Confirm your registration credentials.

3. Pawnshops

In general, pawn shops get a bad rap for being the ultimate destination for desperate sellers. However, they could also form some of the best places to sell your gold. However, an important consideration is the fact that pawn shops are basically for-profit businesses and strive to give the seller as little cash as possible. If you appear to be in a hurry or desperate, or simply accept the first offer that comes your way, chances are you are getting a raw deal. The best way to maximize your pawn shop deal is through a little research. Based on several comparative searches, it is possible to get an idea of ​​what you could possibly expect.

Knowing the karat of your gold is vital before you start selling. For example, in the US, the Federal Trade Commission has made it a requirement that all jewelry sold be described in terms of karat fineness. 14 karat means that your jewelry is fourteen parts gold and ten parts other forms of metals, or about 58 percent gold. The maximum carat level is 24. Most jewelry will range between 10 and 18 carats. Carat values ​​are the same throughout the global gold industry, whether in Australia or the US. Also, jewelry of different karats must be weighed separately. From time to time, gold dealers may weigh all of your jewelry pieces together and then give you the lowest carat value, something you should avoid.