A Jewelers Perspective on the Cash for Gold Craze

Ashland, OR, August 07, 2009 --(PR.com)-- Is there value to consumers in taking advantage of the ubiquitous cash for gold promotions? An industry expert weighs in.

Recently the media has been flooded with advertisements encouraging consumers to cash in on their gold jewelry. Even sign-swingers can be seen on busy street corners waving passerby’s into pawn shops with the promise of "top dollar" for gold chains, class rings, outdated-looking pendants, etc. Unfortunately, according to the business news website MarketWatch.com, consumers may be getting gored on gold prices. And, there are plenty of complaints and cries of scam posted on the Net. Certainly sellers need to be wary – they’re probably getting short-changed. With the price of gold hovering close to $1,000 and ounce, what exactly does "top dollar" mean? Who makes the determination?

"People simply don’t know if their being low-balled on the overall value of their jewelry", according to 30-year veteran of the fine jewelry industry, Ron Hansen of GoldAndGems.com Fine Jewelry. "If you find yourself financially-strapped and truly need to convert your jewelry to its cash value, your best bet is to take the items to your local jeweler."

A full-service jewelry store typically is a member of the Jewelers Vigilance Committee (JVC) - the industry's guardian of ethics and integrity. Here are JVC's tips for selling gold jewelry.

Tips for Selling Gold Jewelry

1. Choose a reputable jeweler, someone that’s known to you or has been recommended by a trusted source. Preferably, select a jeweler that’s a member of the Jewelers Vigilance Committee.

2. Set off on your expedition with reasonable expectations. When you bought the jewelry you paid for more than the value of the gold. The price included labor, packaging and the retail mark-up of the item. The jeweler will only pay you for the actual gold in an object. Since gold is always blended with other metals to make jewelry, expect that a substantial percentage of the object is made of something other than gold.

3. Don't expect to be paid for the non-gold component of the jewelry. The jeweler may conduct a test to determine how much gold is in the jewelry – known in the trade as its "karat fineness." This is called a "scratch" or "acid" test. Expect the jeweler to actually scratch the gold to conduct the test.

4. The price offered to you by the jeweler may not be the market price of gold that day. Prices are not regulated, so the parties are free to negotiate a price that’s acceptable to both sides.

5. Bring a form of government issued identification. Some jewelers are also required by anti-money laundering laws to obtain seller identification.

With rare exceptions, it’s unlikely that weight value will come anywhere close to the original cost of the item. If you’re not completely cash-strapped, but simply tempted by the relentless media push to empty your jewelry box, then ask yourself if you truly want to sell something as scrap that at one time held some sentiment for you. Talk to your jeweler about redesigning or refurbishing your outdated treasures.

A certified jeweler is highly skilled at appraisal, design consultation, model making, carving, metallurgy, filing, burnishing, polishing, gem-setting and much more. With a fine jeweler’s touch, almost any unwanted jewelry becomes valuable again and saves you the hassle of selling your old gold jewelry.

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