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Turning Old Bling Into Fresh Green

Like many women, I have compiled a collection of gold jewelry in recent years, some of which I never wear more. So, recently, decided it was time to join the growing number of people are taking advantage of skyrocketing gold prices to turn bling old fast cash.

Certainly the time has come. Yesterday, gold closed at $ 963.90 an ounce – 15% since the beginning of the year and 52% since late 2006. The last time gold prices soared as this was 1980, when the annual average price was $ 612 an ounce, the equivalent of 1,660 dollars in today's dollars. Back then, lines stretched out the doors of jewelry stores as people tried to sell their gold.

Refineries gold, wholesalers and jewelers say the number of people who want to cash out the gold has increased significantly in the last year, although it is difficult to quantify. Several sources say there are frequently lines at gold buyers in the diamond district of Manhattan. It is noted that refiners are not gaining in jewelry only old or broken off, but also gold bars and coins they bought for investment purposes. Jewelry contracted by an economic slowdown, are selling their old inventory to refiners, too.

So now seems a good time to join the gold rush and did not discharge my unwanted pieces to someone who would pay for the metal. But like any business venture, turning gold into greenbacks starts with getting an education. Who buy gold jewelry for his courage in crisis? What pieces would be worth selling? How do I know if I was getting a fair price?

Finding a jewelry store or dealer to buy the gold was not so difficult – there is no shortage of companies advertising their services on the Internet, in newspapers and on television. But when it comes to getting a good deal, selling requires some shopping around.

For advice, I called David Firestone, third-generation owner Firestone and Parson in Boston, a property dealer in jewelry and antiques who was recommended by a colleague. He said they hope to gain at least 90% of the value of gold from in the price of that day in the open market. He also suggested to find someone who deals in gold coins, a full-time gold broker, or skip the middleman and go directly to a refiner to land the best price. And I knew that check out your chosen company with the Better Business Bureau and the city or Department of State for Consumer Affairs.

Sentimental classification

When cashing out, my first step was to decide which items was willing to part, what can be complex emotionally. I was willing to sell some pieces that had been gifts over the years from family members. A very dated gold bracelet dictation pip my mom went to the sale pile. However, a heart-shaped locket inscribed with my grandmother's initials and date of 1908 was back in the drawer. While not using it, is a sentimental memory. In the end, I decided to sell three nondescript gold bracelets and a necklace of link, and the nearly-1960-bracelet of gold nugget.

Before I could calculate my likely take, I found that gold prices are quoted based on pure gold, or 24K. Most jewelry is 14 karat, though some parts are better from 18 karat, and cheaper jewelry is often 10 karats. So my gold coins worth only a proportionate fraction of the price of 24 carat. In other words, a bracelet of 14 karat gold is valued at 58.5% of 24-karat gold. The carat is usually stamped on jewelry, but sometimes it is too small to see with the naked eye. So they relied on dealers to tell me my metal composition.

Then I had to know how much my gold pieces weighed. Gold is most often measured in currency pesos, 20 pesos currency equivalent to one ounce. Again, a dealer determined the weight of the items you want to sell.

On February 22, when I was flogging my jewelry, the price reached a record $ 949 an ounce. But I knew I could not wait to get the full value. Dealers have to make a profit, and they factor in the amount a discount of refineries are giving them when buying the loot. In these days, so many people are selling their gold jewelry that refiners are backed up, causing delays in crisis and rising costs of intermediaries. I wanted the best price they could get, so my job was to find out quantity discount on the total price was reasonable.

With my work framed, I was ready to go. But where?

My answer came in the weekend newspaper, where I noticed a strong, four-page advertisement to scream, "BUYING 7 DAYS ONLY – INSTANT CASH FOR ALL." A group of 25 independent buyers was setting up business in a local Dallas hotel, buying diamonds and gold and select antiques.

I took my jewelry bag and headed to the hotel, where I met Harrisburg, Pa., antiques jeweler Rodger McKinley. He said he travels 30 weeks a year buying gold. Which it resells some pieces and melts the rest.

Mr. McKinley I learned I had exactly 60 penny weights, or three ounces, of gold jewelry, which included a child of five cents, 18-karat bracelet, with the rest of 14 carats. He offered me $ 750. I was ecstatic – until I began to wonder if a discount of 50% was the going rate. That day was the sale of gold of $ 902 an ounce. Three ounces of my jewelry at 58% of the market price would reach $ 1569. He knew that Mr. McKinley deserved to make a profit, but how much is fair?

I decided to keep looking. My next stop was the Dallas Gold & Silver Exchange Inc., a huge store that sells used jewelry and watches at its premises and in online auctions. A jeweler looked at my four pieces through a loupe, weighed, and then offered me $ 600. Not good.

Then I went to the Internet and found a Dallas gold broker and wholesale jeweler who offered me $ 730 per phone after I gave him my weights and karats. I told him that a budget had already received $ 750 when gold was at $ 902, and prices had risen to $ 939 this day. "Oh, I did not realize it was so high," he explained hurriedly. "I'll get up to $ 1,000 by then."

Jewelry overnight

Not enough. I returned to the Internet and found a gold broker in the heart of the diamond district of Manhattan, USA buyers of gold, which buys and refines precious metals. A customer service representative said the company pays 96% of the spot price for five ounces or more and on a sliding scale from underweight. Overnight I could my jewelry at the expense of the company, and a representative would give me an appointment the next day. If declined, the jewelry would be sent back at no charge to me. If I accepted, he could expect a payment to be processed within 24 hours. I have to choose a bank transfer, or have the money sent through PayPal or by mail.

As reassurance that the company could be trusted, who gave me the license number of the company with the Better Business Bureau and the New York City Department of Consumer Affairs.

Using Federal Express account, I sent the booty, and the next day, a vendor of call with a quote just as gold reached its new $ 949-an-ounce tall. U.S. gold buyers offer ': $ 1570.17.

Sold. My check arrived the following Tuesday. Article published by The Wall Street Journal.

Write to Ann Zimmerman ann.zimmerman @ wsj.com

About the Author

Ann Zimmerman provides helpful industry insights into selling jewelry and information about the benefit of jewelry industry. To know more about who buys gold jewelry, cash for gold, sells used jewelry visit www.goldfellow.com

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