Thursday, December 22, 2005

Selling Scrap Gold

Selling scrap gold is an interesting area of gold most people have not been aware of until recently. Since the value of gold has risen more and more people are becoming aware that they can sell scrap gold and make a tidy profit from it.

But how do they do it?

What is Scrap Gold
Scrap gold can include any products that are made of gold or include gold in its manufacture.

Bent/Broken Jewelry
Bracelets or chains that are inextricably tangled
Broken and unwanted gold scrap
Casting gold and grain
Cluster Rings
Gold alloys
Gold bracelets
Gold bullion
Gold chain
Gold class rings
Gold Coins
Gold coins and bars
Gold dental crowns and bridgework
Gold dust and sweeps
Gold Earrings
Gold findings
Gold flake
Gold ingots
Gold nuggets
Gold Pins/Brooches
Gold screen and mesh
Gold sheet
Gold sheet,
Gold shot
Gold sizing stock
Gold solder
Gold sponge
Gold wedding bands
Gold wire
Gold-filled scrap
Goldsmith's bench filings and sweeps
Items with missing stones
Karat gold jewelry
Melted gold
Old gold watches
Placer gold
Polishing and buffing dust

The condition is immaterial. Old gold that cannot be restored to its former glory is ideal and the gold can be recovered.

Usually it would not be economical to repair such articles but they can easily be sold as scrap. One would not necessarily get the face value of the item, such as a coin for example, but one would get the gold value less a small margin from the dealer accepting your scrap gold.

Scrap gold can also be found in computer mother boards, old cell phones, scrap electronic boards. High grade scrap such as gold plated integrated circuits, gold plated connectors, gold plated fingers, pins, connectors etc.

How to Sell Scrap Gold
There are plenty of buyers for scrap gold. And they will jump over each other to get your gold!

The better ones will offer a special gold kit. This basically consists of a prepaid envelope and some kits may also consist of forms for describing the items you are sending in and various other details.

You simply fill in the forms and enclose the item with the form in the special bag and post it. It is advisable to make a copy of all the details you have entered on the form (a photo copy is a good idea) before you send it.

Usually the envelope is covered by insurance up to a certain amount by the company issuing the special kit. You can check out the details of this on the website. If you consider the gold you are sending is worth more than the insurance offered you might need to come to some other arrangement with the scrap metal merchant.

How Much Will You Get?
Generally speaking you will get the value of the gold the moment it is assessed by the dealer less a handling fee. It is important to note that the price a dealer may pay will not reflect the retail price of that item. It reflects merely the value of the gold by weight and quantity only. What that fee is, is difficult to say as it can vary with the type of gold and the quantity you are offering and the terms under which the dealer operates.

The dealer, when they have made an assessment, will advise you either by phone or email or letter, depending on your mode of communication, and you can then decide if you want to sell it or not. If decide to sell you simply advise them and they will send you a check. If not they will return the gold.

Before you send the item off it is a good idea, if possible, to get an idea of what the gold is worth.

How much gold is there in the item? what is the price of gold on the day? At the top of this web site are charts giving the current price of gold. That is pure gold of course 24 karat. Gold is generally priced at USD per troy ounce. If you have old and battered gold coins, weigh them. Apart from some minute alloy such as copper or silver, they will be mostly gold and if they are Canadian Maple Leaf Gold Coins, will be gold only.

The item you are selling may be of a lesser karat, such as a 18 or 22 karat ring for example, and so would be worth proportionately less as there is less gold in the ring.

Tips and Hints for Selling Scrap Gold

It is a good idea to remove anything of value from the gold you are sending in. With rings, for example, prise any stones out of the item or remove the gold from the rest of the piece so one can weight the gold separately. Keep in mind that other alloys such as silver, platinum and the stones may have a value also. If you can separate them, all the better. If not ensure it is clear that there is other precious metal there and get a price for that also.

The purer the gold with less of other extraneous matter, the better. I may pay to spend some time extracting the gold yourself if possible and can be done safely.

In any transactions with gold, it is prudent to make a complete copy of everything you do. Copy all forms you send off. Photograph the piece you are sending if possible. Make notes on phone calls made with names and dates. Keep all emails.

Ensure you understand the complete process with the dealer from start to finish.

What to do with the Money?
So you have sold your scrap gold and have received a check. As gold continues to increase in value against the dollar you might like to look at investing that money in some gold coins or bars.

That way you are likely to keep your funds. But of course that depends upon your circumstances and the reasons why you are selling scrap gold.


Anonymous said...

This is an excellent and informative article. Thank you for sharing your knowledge in a clear way.

Anonymous said...

This question may be off the beaten path, perhaps crazy to some... but can I smelt the gold at home myslef? I have quite a few gold scraps and seem to get offers only for ~50% the spot price. I'd really like to get more like 98-99% for the whole lot! So, can I melt it myself and make some bars or nugets, and so on?