Selling Gold: In Fact, Totally Worth It

Mr. T stands to make millions with his collection.
Then again, was any of it actually gold?

My own inherent distrust of media fads and panic-driven quick fixes made me reluctant to even consider selling gold since I was positive I was going to be, well, ripped off. With a new semester starting and a hefty textbook fee looming, however, I found myself rifling through my own jewelry box looking for some help. I was able to turn two chains, a set of earrings, and a bracelet into $200, though I did learn a couple things along the way.

Should you sell your gold?

Even though the price for gold is amazingly high right now, selling gold may not be the right choice for you. When I dug through my jewelry, I was keeping some things in mind: when was the last time I wore this and will I ever wear this again? Most of the gold I sold was knotted up chains and otherwise lovely gifts that just weren't quite my style. There's no need to sell your grandmother's engagement ring. Anything you think you might regret selling is not worth its weight in gold—seriously.

Do you actually have gold?

There are a few ways to tell whether your gold is real. Most real gold jewelry has the karat weight printed somewhere on the piece. Karat weight appears as a number followed by k, such as “14K” meaning that it is a 14 karat gold piece. Some companies use the gold percentage number, such as 583, meaning that the gold piece is 58.3% gold (the equivalent to 14K). Other common stamps to see are 10K, which also appears as 417, and 12K (500). Anything labeled as “gold filled” or GF is plated, and most places will not buy this jewelry. Earrings have their karat weight printed in ridiculously tiny lettering on their posts. Most of the time, if the makers go to the trouble to do that, the whole earring is gold. For bracelets and necklaces, the stamp is usually on the clasp.

Where is the best place to go to sell gold?

I tried a few different places when I decided to sell my gold. The major chain jewelry stores were not interested at all. I then went to a small independent jewelry store that gave me a quote for $160. They also looked at all the stamped pieces to make sure they were gold, and told me one of my chains was a fake (because the stamp read K14, not 14K). At two local pawn shops, I was quoted under $100. While jewelers can melt and use the gold, the amount of gold a pawn shop must take in to make a profit is astronomical, so this might be a place you can skip. I then went to another larger but still independently owned store that gave me $206 ($206!!!) for my gold and tested the “fake” chain using a machine that read the conductivity of the metal, and it turned out to be real. A final store that had several independent locations in our area quoted me at $130.

My quick tips for selling gold

Shop around. I got twice as much just by checking out another store half a mile across town. Skip the big chain stores and pawn shops. ALWAYS have each store look at the karat stamps and test your gold electrically before selling your gold; I almost lost out on $50 because one store made a very expensive mistake.

The Economy of Quality

In today's economy where every day can seem a little worse than the one before, everyone is cutting corners and trimming the fat wherever they can. However, spending less can end up costing you more. If you forget to factor in the economy of quality, you can wind up spending hundreds of dollars more replacing your sub-par purchases.

Cheaper isn't always better

When it comes to things that get constant use—your clothing, shoes, furniture, etc—they need to be designed and constructed to put up with the treatment. This basic idea is the economy of quality: pay a little more for a better product, and you won't have to replace the cheap one that wears out over and over again.

Chuck's last much longer than their TV counterpart.
Choose a classic over a trend.

Consider your blue jeans—they take some serious daily use and abuse. It's really tempting to run out to your nearest big-chain store and buy a new pair for $10, but consider why those jeans are cheaper. The cotton is usually a lower thread count, meaning the fabric is thinner and therefore weaker. The stitching may be wider to reduce production time, making the seams unreliable and more likely to rip. The buttons and rivets may be made by another independent company, so they may not have been intended for clothing use (or for the wear and tear that goes on when you throw them into a washing machine). 

Economy of quality means cheaper isn't always better. The bottom line is that it may be better to spring for the $50 pair of Levi's that will still look great in a year rather than the $10 Walmart jeans you'll have to replace in two months.

Identifying a good example of the economy of quality can seem like a tricky game at first, but use two rules to simplify your decisions: consider the material, and avoid disposable. Leather will last longer than fabric. Metal will last longer than plastic. Anything durable and long-lasting is worth the investment. Also steer clear of disposable when trying to save; a good dish towel is $5, versus a years supply of paper towels that can wind up being over $100.

Shop better, not cheaper.

Sales, coupons, and customer cards can make that seemingly unattainable pair of dream shoes a reality. Better yet—combine all three. It's much easier to focus on one store at first, so start by picking your favorite: Kohl's, Macy's, JCPenny, and Carsons Stores, just to name a few. They can admittedly be a little pricey, but some of them have some serious sales, as in 25% off sales. Many of these stores have weekly announcements in local papers along with coupons that can increase your savings. Joining their email lists can yield digital coupons too; Kohl's, for instance, automatically sends you a $10 or 15% off coupon just for signing up, no credit card application required.

Though they're not within everyone's budget, store credit cards can give you a lot of savings as well. Boston Store, a member of Carsons Stores, has customer loyalty savings days where anyone holding a store credit card receives an additional 20% off on top of the other coupons they send out to their card holders. Cards are definitely worth checking out, but only if they're in your budget: defaulting on a credit card doesn't help anyone.

Shop for quality. Shop for use. Shop for savings.