— Decide if you really want to sell that gold. Jewelry often can be worth more than its salvage weight when you include artistic or sentimental value.
— Gold parties may be fun and convenient, but may not give you the best deal. It is important to know the karat of your gold and to get it appraised beforehand. Call a local jewelry store or go to .
— Keep in mind that nobody does business to lose. Gold parties operate with many costs such as host commissions, the buyer’s time and the refiner. These overhead costs mean that your gold may be bought at up to half of what it is really worth.
— Be wary of buyers who lump your gold into one pile. Sort your gold by karat weight beforehand, and be cautious if told your gold is of a different karat.
— Understand the scales. Gold is measured in troy ounces (31.1 grams). Shady buyers will buy gold in what’s called pennyweight (1.555 grams) and pay you in grams. Make sure you are paid the right price for the unit of measurement.
Source: Palm Beach County (Fla.) Division of Consumer Affairs
What’s up with gold prices?
The prices are “volatile because the financial markets are volatile in general right now,” said Jim Steel, a commodities analyst with HSBC, adding that gold tends to hold its value during times of stress. “The trading range has been very wide in 2008, fluctuating almost $350.”
It is this trend of investing in gold that has kept prices relatively high even though more people are selling their gold pieces now, said Sean Brodrick of Jupiter, Fla.-based Weiss Research.
“Most investments (stink) right now,” he said. “When you have all this bad news, you want to put your money in something with weight. Many people are turning to gold as a hard investment for their money.”
Allison Ross writes for The Palm Beach Post.
