A guide to selling your gold

In today’s market, selling your unwanted gold can be a profitable venture, especially with the current and recent increases in the gold spot prices. Whether you are inspired by tales of treasure hunting or simply looking for a way to raise some extra money, now might be the perfect time to dive into your jewellery box and consider selling your unworn gold pieces.

Factors That Drive the Gold Market

For centuries Gold has been a highly valued commodity, cherished for centuries due to its beauty, rarity and social influence. It serves as a hedge against inflation risks and currency devaluation risks, particularly in times of global economic instability.

Several factors that influence gold prices:

1. Supply: This involves the availability of gold and the reserve rates. When gold reserves are high, prices are likely to decrease, and when reserves are low, prices typically increase. The current Gold mining output can also have a direct impact on supply.
2. Demand: How many people are looking to buy gold? The Gold buyers fall into various categories from government buying to general consumer demand trends for Gold jewellery. Currently, many are turning to gold due to economic uncertainty, and inflation on currency.
3. Investor Behaviour: Inflation and looming recessions often drive investors towards gold. Unlike some other investments, gold will generally not lose all its value in correlation to  economic performance.

Current State of the Gold Market

Gold spot prices are quoted per troy ounce, and these gold prices fluctuate by the minute. You can view reliable sources for Gold spot pricing from websites such as the Royal Mint live gold price tracker, can provide realtime live updates on gold spot prices. At the time this article was written, gold was valued at £1,484.82 per troy ounce, not too far from the all-time high of £1,635.28. This suggests that it could be an excellent time to sell gold.

Determining the Value of Gold Jewellery

When selling your unwanted gold jewellery, it is important to note that in the UK and many other countries gold is weighed and sold by the gram, not by the ounce, as in the case of pure gold. The conversion from ounces to grams is simple: one ounce is equal to 31.1 grams. So you can convert the current troy ounce gold spot price by dividing the value by 31.1. This will give the price per gram of pure gold.

Carats: The purity of gold in jewellery is measured in carats. 24-carat (or 24kt) gold is pure gold with no additional metals. Lower carat ratings contain a higher percentage of other metals: 18kt gold is 75% gold and 25% other metals, while 14kt gold is 58% gold and 42% other metals. The closer the carat rating is to 24, the purer and more valuable the gold. Many jewellery pieces will be made from lower carat gold due to its more harder wearing properties. 24Kt gold is a soft metal that can scratch and become damaged quite easily, combining other metals to lower the purity can improve its durability. 

Craftsmanship: Unique, creative, and intricate pieces of gold jewellery that have many labour hours invested to produce are typically valued higher due to their rarity and craftsmanship. In contrast, common stock items like engagement rings or earring mountings are usually valued lower because they are more readily available.

Economic Factors That Encourage Selling Gold

Gold selling has become increasingly popular due to economic pressures faced by many in the UK and worldwide. Many people are searching for ways to find extra money, and selling gold can be a viable option. The following economic factors have an impact on gold selling and buying:

1. Inflation and Cost of Living: Inflation drives up the cost of living, making everything from rent to your weekly shopping more expensive. For many, wages remain stagnant while expenses rise exponentially, prompting people to look at their assets to raise some additional capital. With gold prices approaching a current all time high, selling your unwanted gold jewellery can be a way to cover the inflated monthly bills.
2. Economic Uncertainty: Wars, political upheaval, and other events contribute to global economic uncertainty. During these times, many people choose to invest in gold as a stable asset. Gold retains its value even if a country’s currency loses value, and it can serve as a hedge against inflation.

Practical Advice for Selling Gold

Know the current Gold Spot Price: Before selling your gold, it is essential to know the current gold spot price and the value of your gold. Prices change frequently, so stay informed to have an advantage when negotiating with buyers. It’s important to note that if you choose to sell your gold to a scrap or precious metals buyer. You will not be able to achieve full gold spot price. You will be offered a percentage of the gold spot price usually between 85%-95%. Large gold buyers will work on a small margin, you can explore the market and compare quotes. 

Choose a Trustworthy Gold Buyer: It is crucial to select a reputable gold dealer when selling your gold. Unfortunately, some businesses lack professionalism and exploit sellers’ unfamiliarity with the industry. It’s crucial if selling your gold online, you select a buyer with visible gold pricing. Many companies will request to post your gold to them then often offer well below market value once they have possession of your jewellery. Consider options such as Hatton Garden Metals, Cheshire Gold Xchange and Royal Mint, known for transparent pricing and favourable reviews.

Know the Value of Your Gold: Determine your gold’s value by knowing the caratage and weight. For example, if you are looking to sell a 14k gold chain weighing 20 grams you can do the following workings to obtain the current spot price value of your item:

£1,484.82(current spot price) / 31.1035 = £47.70 per gram (approximately)

Now you have the current spot price per gram. 

You have 20 grams of 14kt gold, which is 58.33% pure gold. To find out how many grams of pure gold you have, you can now multiply the total weight of your item by 58.44%

20 grams * 0.5833(percent pure gold) = 11.666 grams of pure gold

Now you can calculate the value of your 14kt gold by multiplying the amount of pure gold by the price per gram:

11.666 grams * £47.70 = £556.43

Many online based gold buyers feature a gold price calculator on their website this will usually give you a rough offer for your gold based on their pricing. Knowing the value of your gold is key to informed negotiations with buyers. Even though the process may seem complicated, it’s worth the effort to ensure you get the best price for your gold.