Hawaii’s BBB Offers Tips for Selling Gold and Jewelry

HONOLULU (August 10, 2010) – With the tight economy and continued high unemployment rates, more and more people are considering selling their gold and jewelry for extra cash or to make ends meet. While the lure of cashing in on old or broken jewelry is strong, there are some things you should be aware of before sending your merchandise away or making any deals.

“Selling single earrings, little-worn novelties, or other pieces of jewelry that are of little sentiment may seem like an easy to make some quick cash,” said Dwight Kealoha, chief executive officer of Hawaii’s BBB. “But consumers should do their research and consider their options before making that trip to the jewelry store or sending off the valuables in an envelope.”

BBB reminds consumers:

• Not all jewelry is created equal. Selling mismatched or broken pieces for scrap can be worthwhile. However, some jewelry may be worth more than for its gold content alone. Intricate, designer and gemstone items should be appraised, and may fetch a better price from a jeweler or at an auction.
• Resale value will likely be less than purchase amount. Jewelry purchased in a retail setting is marked up according to production costs and other factors. When you sell gold, you are getting close to the wholesale price.
• Prices fluctuate. The value of gold is not a set price, nor is it regulated, so it’s in your best interest to shop around. Try to visit prospective buyers on the same day, as the price of gold is subject to change daily.
• Mail transactions limit options. Be aware that some cash for gold by mail offers will value your items and send a check without an opportunity to reject their offer.

BBB also offers the following advice if considering selling gold for cash:

• Deal with a local business that pays for gold or buys used jewelry. Getting an appraisal for jewelry is a good way to know what the actual value of your merchandise. Do not be afraid to ask for the karat information and weight in pennyweights or Troy ounces. This information is valuable in determining the market value of the jewelry sold.
• Shop around, locally. Selling to local jewelers makes it easier to research and understand their credibility, processes, and going rates. Check the BBB Reliability Report of any business offering cash for gold.
• Be prepared to show your identification. In accordance with the 1979 Anti-Fencing Law, a buyer is required to check the driver’s license or other official identification of anyone selling them gold. Details are available on the U.S. Department of Justice website at www.usdoj.gov.
• Use a tracking system. Be cautious if you’re mailing your gold to an out of state buyer. Pay the shipper the extra amount that allows you to track your package and/or send your items certified. You will also want to insure your merchandise.
• Research the value of gold coins. If selling gold coins be aware that many have value beyond their weight in gold. Consult a coin collector’s book or do some research on the Web before selling your coins.

For more trustworthy consumer tips, visit bbb.org.