As of: April 4, 2024, 4:00 p.m
By: Laura Hindelang
Comments
Press
Split
Anyone who sells scrap gold to the first dealer they come across may bitterly regret it. The price fluctuations between individual stores are sometimes enormous.
Gold is usually intended as a long-term investment and as a hedge in times of crisis. But gold can also make quick money. If money is tight or unexpectedly high expenses suddenly arise, it is tempting to sell your grandmother's gold jewelry. Selling the shiny investment seems lucrative, especially in times of crisis. A survey by the
University of St. Gallen
showed that most people sell their gold under pressure. Nevertheless, you should take your time. Because if you accept the first offer that comes along, the price may be far lower than the actual value of the jewelry.
Do not sell old gold below its value
This is shown, for example, by a comparison by
Finanztest
. For a gold bracelet weighing just under 90 grams, a Berlin gold dealer offered around 1,500 euros, while a shop two kilometers away offered 2,130 euros. Although dealers usually base their prices on the current gold price, the offers are not always fair. A test by
Kabel 1,
in which a reporter had pieces of jewelry worth over 5,000 euros valued, confirmed this. A refinery and a jeweler measured the supposed value at 3,500 and 2,100 euros respectively - and thus far below the actual value.
To determine the value of old gold, jewelers and gold dealers use various methods, including the weight test and the acid test. © Deutzmann/Imago
The study by the
University of St. Gallen
showed that the majority of customers are still satisfied with the money offered. This is probably due to ignorance, explains Swiss gold dealer Christian Brenner to
Swiss Radio
. Michael Harrer, a sworn jewelry inspector, explains to
Kabel 1
that gold is usually underestimated. That opens the door for fraudsters.
How the selling price of scrap gold is determined
The price of gold on the London Bullion Exchange is for one ounce (31.1 grams) of pure gold, explains
Forbes
. However, several factors play a role in the selling price, for example the fineness. This is given in numbers such as 333 gold, 585 gold or 750 gold. The higher the fineness, the purer and more valuable the precious metal is. Weight, condition, age as well as spot price and melt price also influence the value. The spot price reflects the general price of gold. The melting price is slightly lower and applies to coins and bars that are no longer tradable due to poor condition.
The gold can be sold either at local dealers or over the Internet. However, the risk of falling into dubious dealers or fraudsters is higher online. Fraudsters could keep your jewelry or replace a gold bar with a counterfeit, warns the
North Rhine-Westphalia consumer advice center
. If you still want to send your gold to an online dealer, make sure you have sufficient insurance. Otherwise, if you ship gold of high value and the package goes missing, you could make a big loss.
Forbes
recommends selling directly from reputable dealers. These include banks, precious metal dealers, jewelers and refineries.
My news
Debate about citizens' money for Ukraine refugees: “The federal government is making our lives difficult” read
Many pensioners are entitled to more pension points - but these are only available upon application
1500 euros per month - Citizen's benefit recipient emphasizes: "It's just too much money for my standards" read
Videos show losses: Russia's tank fleet is lost in the rain of cluster bombs
Russia's economy worried: dependence on China will be Putin's downfall
Tumor discovered too late: 19-year-old falls into a coma after chemo
Would you like valuable money-saving tips?
Merkur.de's “Clever Save” newsletter always has the best money-saving tips for you every Thursday.
View your gold beforehand:
Calculate the pure material value. To do this, you need to know the gold content of your jewelry. This can be read from the engraving, explains the
North Rhine-Westphalia consumer center
. The numbers 333, 585 and 750 refer to the gold content in per mille. For example, 333 indicates that one third of the total weight is gold. Using the weight and the current price of gold, you can calculate a value that can be used as a benchmark when selling.
Take a look at the dealer:
Before visiting the dealer, take a look at the website to identify potentially dubious offers. Caution is advised when maximum prices are promised, warns
Swiss Broadcasting
. The Professional Association of German Coin Dealers, for example, provides a list of certified gold dealers.
Get a second or third opinion:
Offers vary greatly from dealer to dealer. This is partly because they include a risk discount and an amount for melting costs in the price. These discounts can vary. It is not uncommon for dealers to try to sell gold below its value to ignorant laypeople.
Be present during the inspection:
You can recognize a reputable dealer by, among other things, being transparent and carrying out the measurements in front of you. Always keep the test procedure and scales in sight, advises
Kabel 1
.
Ask:
Once you have determined the approximate value of your jewelry, feel free to ask if there are significant discrepancies. It's also worth checking out older pieces, explains
Schweizer Rundfunk
. There may be added value, for example a special design or it is a watch from a limited series. In this case, an auction might be worth it. Reputable dealers will inform you of this possibility.