If you have ever considered selling old gold or other unwanted jewelry for cash, you need to know that the many companies that advertise on TV and online, including Cash4Gold.com, will NOT give you “top dollar” for your silver, gold, or platinum. In fact, they may only offer you a fraction of what you could fetch at a reputable local dealer.
Selling unused or unwanted jewelry is a great way to round up some cash to pay down debts or finance a big expense, but proceed with caution, as it’s easy to get ripped off.
Web sites like Cash4Gold.com have popped up left and right offering you money for your jewelry. They make it easy to sell: you mail in your jewelry in a secure envelope, they appraise it and send you a check. If you like the check, you cash it and they keep the gold. If you change your mind, you return their check and they return your jewelry.
While selling your gold on these Web sites is convenient, you are guaranteed not to get the best deal. The reason is simple—Cash4Gold.com and others know that if you mailed in your jewelry (which you must do to have it appraised), you aren’t getting it appraised elsewhere, freeing them to make the lowest offer possible.
A recent TV investigative report solicited offers for some jewelry from Cash4Gold.com and several independent jewelers in the New York area. They received offers from local dealers—for the same gold—ranging from about $670 to $1,400. Cash4Gold’s offer? A mere $209.81.
The bottom line? Do not sell anything valuable before doing your homework. If you can’t do the homework, hang onto the goods.
If you’re selling old jewelry, start with a local estate jeweler to get a rough appraisal (most will take a quick look at a small number of pieces for free). If the jewelry itself isn’t that valuable, only then consider selling it for scrap metal. Get several offers, and don’t be afraid to negotiate. Any dealer’s first offer will almost never be their highest.