You have no doubt noticed the massive growth in the popularity of investing in gold. Investment brokers are frequently asking you to invest, plus there are masses of adverts on the television with companies asking you to sell them your scrap gold. So, in this article, we will cover why you would want to sell any scrap gold and how you would go about doing it.
Why should I sell my unwanted gold?
Although the price of gold has typically been increasing, just owning gold does not earn you any interest (or dividends, etc). So unless you particularly enjoy wearing a gold bracelet or ring, that jewellery does not serve any real purpose. Therefore turning any unwanted items into cash can be a very useful cash injection in your investment portfolio. Sadly, some people spend the money they get from selling gold, but I am sure you know better!
Although gold is doing very well at this point, you might have investments that have stronger sustained growth, so you could make more money from your gold by selling it and investing it in better investment vehicles. Selling unwanted gold jewellery (called ‘scrap gold’ by gold companies) is very easy to do. As long as you own the item personally, it typically does not attract any tax liabilities.
Using a ‘Cash for Gold’ postal service
Companies offering to buy your scrap gold are extremely abundant and offer the simplest and quickest process for selling gold. You get a quote for the gold you are going to send and then post the gold items in an insured envelope. In return, your gold is valued, and you receive a cheque. It is very quick and very easy.
It almost sounds too good to be true. But it is not, as it works on a very simple principle. For example, say your gold is worth £100. These companies will offer you between 20% to 95% of the actual value of the gold. So you might get £20 to £95 cash for your £ 100 worth of gold. This means that they always make a profit from buying your gold. This is the ‘price you pay’ for having such a quick and easy service.
Selling on eBay
If you know your gold very well, then selling it on eBay will help you get the best price for it. The strong interest in gold at the moment means that plenty of people are buying and selling gold on eBay. However, there are three things to bear in mind.
1) You really need to know how to value gold, to ensure you get a good price.
2) Buyers are motivated to find good deals so that they can make a profit, which means you are likely to get less than 100% of the value of the jewellery.
3) eBay and PayPal fees can be expensive, costing up to 20% of your listed item.
If you are thinking of taking this path, do the maths to ensure you are giving yourself a good deal.
Visiting a bricks’n’mortar jewellery shop
Unless you have jewellery encrusted with valuable gems, the value of a piece of jewellery is typically little more than its weight in gold. However, most postal gold services only measure the value based on weight. If you have got a gold ring with lots of precious gems, then visiting a jewellery shop is a great idea. These shops typically give you very good prices for your gold jewellery. It is worth visiting a few shops to get a range of quotes and ensure you are not getting ripped off. Clearly, this takes a lot of time, too.
If you are selling your gold to a postal service, it is usually worth visiting a jewellery shop to see if they can value your item. It will help determine if you are getting a good price or not. If the postal service gives you a rubbish quote, then you can go back to the jewellery shop.
4 Sell or Refine Gold
Instead of trying to sell your scrap gold in person, you can refine it through a gold refining company. Gold refiners are companies that melt down any gold items and purify them to their rawest form. Once refined, the gold can be cast back into new jewellery, coins, or other products. Many refineries offer services to individuals who want to recycle small amounts of gold.
You may get a partial value from your gold, as a refining process costs money; however, refiners pay a better price than most pawn shops or jewellery stores. Moreover, using a refiner is an eco-friendly method of recycling your scrap gold.
Recycling Scrap Gold into New Jewelry
Instead of selling your scrap gold, why not melt it down and turn it into a beautiful new piece of jewellery? Many jewellers accept scrap gold as a trade-in and will repurpose it into something new, such as a bracelet, ring, or pendant.
If you have sentimental gold items, such as a broken or outdated family heirloom, this could be the perfect way to preserve the memories while creating something unique and wearable.
Custom jewellers can also help you transform your old pieces into modern, fashionable jewellery. This makes recycling not only financially rewarding but also emotionally fulfilling.
Consider Gold ETFs or Gold Mining Stocks
If you are not seeking to sell your scrap gold at this particular moment but still need to make it work for you, consider investing in gold ETFs or gold mining stocks. This is the backdoor recycling of your scrap gold. By transforming your gold into shares of a gold ETF or a mining stock, you can profit from market fluctuations in gold without necessarily selling it.
While this method may provide little returns, it is a way to capitalize on your scrap gold in the long term, especially if you are holding on to it for investment purposes.
The Environmental Benefits of Recycling Gold
Recycling gold is not only about individual gain but also about creating a positive impact on the environment. Gold mining is one of the most energy-intensive industries in the world and produces a huge amount of waste. Recycling gold helps reduce the need for new mining operations and the environmental damage that comes with them.
According to the International Resource Panel, recycling gold requires only 10% of the energy needed for primary gold production. This makes gold recycling an environmentally friendly alternative to traditional mining practices.
Conclusion
Recycling scrap gold is easy, profitable, and eco-friendly. It turns your unwanted items into valuable assets. Be it a buyer, refiner, or repurposing into new jewellery, you have many choices when deciding how to best capitalize on your scrap gold. On top of reaping financial rewards, you will also be able to feel good about reducing your environmental impact and supporting sustainability in the gold industry. So, the next time you come across old, unused gold, consider recycling it—you might just be surprised at how much it is worth!
