All precious metals come in four basic types. They are:
- Scrap metal – sold by weight for the intrinsic value of the metals it contains. The best precious metal to sell as scrap is almost pure 22-carat gold and the value of white gold scrap depends on what makes the gold “white”. (I go into more detail about this later.)
- Bullion – not really applicable to white gold, as bullion is almost always pure gold smelted into bars, ingots or coins of a specified weight. Investors will buy a kilo of gold and be able to tell by inspecting the price of gold online, how much their investment is worth.
- Jewelry (or jewellery) – is most applicable to white gold as one of the main reasons it is created is to look beautiful when made into jewelry.
- Other items (other than jewelry) made out of gold, such as watches, candlesticks and pens.
We should look at each of these types in turn – excluding bullion – and pay particular attention to how each of them applies when you are selling white gold.
Selling White Gold Scrap
White gold is simply gold with something to lighten the color. If that something is platinum, then your white gold can be worth very nearly as much as regular gold and occasionally more. If the added ingredient is nickel or silver, then you’ll get proportionally less.
Where To Buy Gold For The Best Price
The current price of gold is nearing $2,000 per ounce, but it is important to realize that this price is constantly fluctuating. Of course, this is also not the price you will pay when purchasing gold bullion or coins and it is certainly not what you should expect when selling your gold. However, you can purchase a variety of gold bars and coins for a little over market price. The price you are charged for your gold is considered the cash price and includes not only the current market price, but also an additional markup on the part of your gold dealer.
When you come to sell your gold, there will also be a fee or markup involved, which is why it is important to know where to sell gold for the best price. It is important to only deal with a reputable company with a good track record of providing honest and reliable service to its customers. Here is a video from ABC News showing how tricky it can be:
Where To Buy Gold Safely & Securely
When purchasing gold it is important to know your source and only choose a reputable dealer. Unfortunately, there are many scams aimed at selling gold to unsuspecting investors. This gold is often not of the quality being represented. Additionally, gold prices vary constantly and unless you are on top of the current rates and know how much you should pay for your gold, it is easy to get ripped off. This is also true when trying to decide where to sell gold. It is important that you receive a fair price for your gold and that the dealer is one that will offer an honest transaction. Do your research and choose your gold dealer based on their years of experience in the business and proven track record.
Of course, purchasing gold from a dealer means that there will be a mark up in price. This is only natural given the nature of business. After all, the gold dealer must first purchase the gold; this means their money is tied up in the precious metal. Next, they must maintain the overhead needed for their shop, including hiring employees and all of the other necessary expenses. All of this costs money and the markup in price you pay for your gold helps to cover a dealer’s expenses to stay in business. However, as a gold investor, you have the benefit of knowing that you are dealing with a reputable business.
An established business that has been selling gold for many years has a reputation to uphold. Fortunately, you can take comfort in knowing that the gold you are purchasing is, in fact, genuine. Trusting unreliable sources might seem cheaper on the surface, but they can quickly cost you a fortune when you discover that your gold purchase is not worth what you paid.
Just like with the research that is required for buying gold from a local gold dealer, it is imperative that you use caution when purchasing from online auction sites. If you choose to purchase gold from one of these sources, be sure to thoroughly read the specifics of the auction. Know exactly what you are bidding on and only buy from sellers who have a solid feedback score. Purchasing gold from these sources can be risky, so take your time and do your research.
Many times, people like to take advantage of finding scrap gold that they can sell for cash. This can be an excellent way to earn some extra money, but you need to be careful. Whether you hunt for scrap jewelry, coins or other items, it is usually best to deal with individual who are not experienced in the gold market. When professional auctioneers or estate agents are involved, they know what they are selling and you will likely not find any bargains. Look through thrift stores, junk stores, garage sales and estate sales for broken watches, jewelry and other junk pieces that have scrap gold you can salvage. Of course, once you locate your gold, it is important to carefully pick where to buy gold for the best price.
Here is a straightforward video telling you about the various options you have when you decide to buy gold.