The List: Know your gold before you sell it

The high value of gold has many consumers considering trading their jewelry for quick cash, but sellers shouldn’t make the transaction before doing some homework.

• Understand the price of gold, recommends the Better Business Bureau. If the price of gold is $1,800 per ounce, you’re not going to sell your gold at that price. Buyers pay a percentage of that, and you should shop around for the best price. Also, the fair market value is for pure gold. For instance, 14-karat gold is about 58.5 percent gold, and therefore worth 58.5 percent of the fair market value.
• Ask how much the rate is for each karat. Some dealers will weigh all your jewelry together and pay based on the lowest karat. Be sure that jewels are sold separated. Jewels in ear rings might be so small that the labor to remove them exceeds their worth, but large stones should get their own appraisal.
• Understand how gold is weighed. For example, 28 grams equals an ounce, but some weigh by the Troy ounce, which is 31.1 grams. Further, some use the pennyweight, equal to 1.555 grams, instead of the gram.
• If you sell through the mail, insure the shipped item and get appraisal before mailing so you have proof of the value. Check the company’s policy about reimbursement if they lose the item. List and photograph the items you are sending. Find out if you can get your gold back if you return the check. Many companies melt down in 10 to 14 days.
• Check out companies, including retail stores and online dealers, before you sell.