When you make the decision to sell gold jewelry for some extra cash, of course you are aware of the different options that I have presented here.  But let’s take a closer look at how the pawn shops buy scrap or unwanted gold jewelry.

The first thing that you should realize is the fact that the pawn shop is simply providing a service.  It’s typically not the main reason why they are in business.  The purpose of pawn shops is to loan people money and to hold some of their property as collateral so they can be sure that the borrower will come back to pay off the loan.  And if they don’t come back to pay back the loan, then the pawn shop keeps the collateral and sells it to get his money back.

That’s not the typical transaction that takes place on the television show “Pawn Stars”, but it is the reality of how these types of shops work.

So how does the transaction process of selling gold jewelry to a pawn shop work?  You bring your unwanted or scrap gold jewelry into the shop to have it evaluated.  You jewelry will be examined, tested for purity and weight.  Unethical shop owners will fudge a little when your jewelry is weighed so make sure that you have it weighed at more than one place.  After you gold is weighed and tested then you will be made an offer.

The offer that you get will be based on the spot price of gold.  But what is the spot price of gold?  You can find it here just to the right of this article.  But keep this in mind; your jewelry is not pure gold.  The spot price is based on pure gold, and they are just not going to offer 100% of spot price.  No gold buyer can offer 100% of spot price, because that is how much they will get when it is sold.  That’s a concept that many people just can’t grasp.  Any type of buyer has costs and expenses to cover, so they must leave a little profit margin so they can stay in business.

Making the statement that gold parties are a rip off is a pretty bold one.  But what I am going to do is break down the process for you so you can make a decision for yourself when all of the facts are laid out.

So what is a gold party?

A gold party is simply a dinner party or gathering at someone’s home where the guests bring their unwanted gold jewelry so it can be conveniently sold to a gold buying company representative.  Generally wine a spirits are served so everyone is relaxed and has a good time.

The representative will weigh and test the jewelry for quality and make an offer to people who are willing to sell their jewelry for a little profit.  But do they offer the most money possible for your jewelry?  That is where the rip off comes in.

Here is what is going on behind the scenes.

The gold representative simply does not offer the full amount possible for your gold because he needs to hold back to leave some profit for himself and the host of the party.  That’s right, the host makes a profit off of all the jewelry sold at the gold party.  The host will usually take about a 10% cut of all the jewelry sold at the party.

Now how does the representative make a profit?

The representative usually pays out of pocket for all of the jewelry bought at the party.  He then resells the gold items to a refinery for it to be melted into ingots or bars.  The representative has to leave some room for profit when the gold is resold.  It’s as simple as that.   Everybody is taking a cut of your profits.  And that means you don’t make the most money possible.

Go to Cash for Gold USA Review and see for yourself how to make the most money for your gold without getting ripped off by all of the middle men.

Are you wondering where to sell gold jewelry for cash?  If you have seen the television commercials like I have, you may be thinking about where the best place to sell your gold jewelry is, right?  There are lots of gold buyers popping up everywhere these days.  They are showing up on street corners all across the nation as well as all over the internet.

So where is the best place to sell gold jewelry?

The first place that most people think about is a corner jewelry store or pawn shop.  This type of gold buyer can offer very quick pay outs for your unwanted gold jewelry.  But are they really a great place to sell your gold?  The short answer for most of us is no.  This type of gold buyer cannot offer you the most money for your gold jewelry.  But if you have a pair of genuine diamond earrings, then a jewelry store may be your best bet to get the most money.

EBAY has been a popular choice for a lot of people over the last several years.  But EBAY is a choice that fewer and fewer people are deciding to use.  Their fees and costs are just too much for me to want to deal with.

Online Gold Buyers

Online gold buyers have also become a popular choice for many people.  They typically offer slower turn-around times on cash payouts because of the time it takes for their mailing process.  But since many of them are actually gold refineries, they typically offer more money than pawn shops and jewelry stores.

If you are not familiar with how online gold buyers work, let me fill you in.  On their website you will find a form to fill out to receive you gold mailing pack.  The different companies call it different things, but their processes are basically the same.  When you receive the mailing pack, you send in your gold jewelry for evaluation.

A few days later you get an offer by mail in the form of a check, or you may receive a phone call.  If you don’t like the offer, just return the check or just say “NO” to the person that calls you, and your gold jewelry will be returned to you free of charge.   It’s as simple as that.

Click HERE for a Review of the So Called TOP Online Gold Buyer

Are you interested in selling your gold jewelry for cash?  By the time you are finished reading this article, I hope you will have a better idea of exactly where to sell your gold jewelry.  When you decide on the best place for you, you will find that the process is very easy.

Selling Gold Jewelry for Cash Tips

There are literally dozens of places to sell your gold jewelry.  Some of them are down the street or are just around the corner, but you should be careful before you make any quick decisions.  Finding some tips for selling gold jewelry was very important to me, and I am sure that it is for you too.

Tip #1 – Sellers Should Be Cautious!

Just because you see a commercial about a company that says that they will offer you the most money for your gold, it simply does not make it true.  In fact, that could be an indication of a company that you should stay away from.  How does the company have all of that money to do all of that advertising?  That’s an interesting question.  Maybe you should consider a different gold buyer.

Tip #2 – Pawn Shops – Are pawn shops a good choice?

In my opinion, pawn shops are simply not your best choice.  Pawn shops are familiar with dealing with people that are down on their luck and struggling with hard times.  For this reason, they may not be willing to offer you very much for your gold jewelry.  Pawn shops may be your only choice if you need some extra money this afternoon, but you simply will not get the best payout.

Tip #3 – What about jewelry stores?

Jewelry stores deal in retail.  They are simply not going to offer you anywhere near retail for your gold jewelry.  Use the jewelry stores for getting an appraisal on what you jewelry is really worth.  On the other hand, if you have a really nice piece of jewelry, they may be interested in selling it on consignment for you.  By nice jewelry, I am referring to diamond earrings or a diamond necklace.   Most of us just have random pieces of gold jewelry that we are wanting to sell, right?

Tip #4 – Have you heard of online gold buyers?

Online gold buyers can typically offer the most money for your unwanted gold jewelry.  Why, because they are in competition with each other and need to keep their offers at the edge of their profit margin.  That means money in your pocket.  Their advertising costs are also lower than their brick and mortar competition like the jewelry stores and pawn shops.

If you are interested in getting the most money for your gold, go to Cash For Gold Review.  Cash For Gold Review takes a closer look at the so called top online gold buyer that claims to offer you as much as 3 times more for your gold jewelry. 

Another option that you may want to consider if you need to sell some of your gold jewelry is Ebay.  Ebay is a great place to sell your unwanted or used items of any kind.  They have been around for years and have a very good reputation.  I have been buying and selling stuff on Ebay for years.  But in recent years, their fees have really started to cut into the profits of everyday people.

Another issue that I have with Ebay is the fact that you have to compete with retailers.  Gone are the days of listing something common and expecting a decent return.  But on the other hand they have a proven system and a very safe transaction process.  If someone doesn’t pay you for your item, you simply don’t send it to them and your losses are minimal.

That is the reality of Ebay today, but if you have a genuine Tiffany style diamond ring setting, chances are you could make a real profit by using an online auction service.  Me personally, I just don’t have any wedding rings laying around collecting dust, so they just are not a good option for me.

The first thing that you must think when selling your gold jewelry is your options.  Everybody wants options in life, right.  So that’s what I will try to help you with.  Getting a little extra money to help make ends meet in these tough economic times is very important to you I am sure.  Earning some extra cash is very important to me.   I know what it is like to live from paycheck to paycheck.

So exactly what are your options if you decide to sell your gold jewelry?

Pawn Shops

Jewelry Stores

Ebay

Refineries

Online Gold Buyers