We’ve all seen those ads while surfing late night TV: Cash for gold, I’m the Cash Man, We Buy Used Jewelry! However, anyone who’s actually tried to sell jewelry to gold buyers in Canada can tell you it’s not as easy as simply handing over your Mr.T gold chains from your failed rap career and making it rain.
Getting the Most Cash for Your Gold
While there are more gold buyers in Canada than ever since the rise of gold during the financial crisis, you can’t rely on high stock market value when trying to sell jewelry at a local dealer.
For instance, if you think gold buyers are taking your jewelry and re-selling it, you have serious research to do! Most gold buyers actually melt down the gold and silver they receive, so the French-cut, dual-chain design of your dog’s diamond leash doesn’t actually factor into their calculations, all that matters is the gold content within the jewelry.
Speaking of gold content, you should make sure the jewelry you want to sell is actually gold and not just gold plated, or else you’re in for a very awkward visit at the gold buyer’s. You should also be aware that karats aren’t just what Bugs Bunny likes to eat. Karats refer to what portion of the material is pure gold and what portion is other metal, with one being the lowest and 24 being the highest.
Purity affects the market value of the gold, as does gold’s current price on the stock market. If you intend to sell jewelry, you should keep track of the daily price of gold and try to visit a gold buyer at a time period where it’s high, in order to get the best price.
However, no matter how pure your gold is, the gold buyer will not offer you the full market price. You’ll have to accept that you’ll get a markdown – the question is how bad. In general, 10-15% is a fair markdown for gold, but again, be aware of current prices and never take the first offer.
Selling Jewelry Do’s and Don’ts
As with most negotiations, you need to take your time and not get pressured to sell immediately. Don’t be afraid to speak to multiple gold buyers in Canada and get their quotes.
One thing we’d recommend against is sending your jewelry to online gold buyers, as you lose the ability to haggle for a better deal and run the risk of getting scammed by a disreputable company.
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