So, you’ve got some gold. Maybe it’s a heavy herringbone necklace from the eighties that’s been gathering dust in a velvet box, or perhaps a handful of Krugerrands you inherited. You’re looking at the spot price on your phone, seeing those record highs, and thinking, "Okay, how do I sell gold and actually get a fair price?" It feels like a minefield. Walk into the wrong shop and you’re basically handing over a portion of your net worth as a "convenience fee" to a guy in a strip mall.
Selling gold isn't just about the weight. It's about understanding the "spread," knowing the difference between melt value and numismatic value, and recognizing that a pawn shop is rarely your friend in this specific transaction.
Understanding What You Actually Have
Before you even step foot outside, you need to categorize your stash. Not all gold is created equal. If you have bullion—government-minted coins like American Eagles or Canadian Maple Leafs—you’re in a great spot. These have a known purity ($91.67%$ for Eagles, $99.9%$ for Maples) and are highly liquid. You should expect to get very close to the spot price for these. Sometimes, if the market is tight, you might even get a tiny premium over spot, though that’s rarer for individual sellers.
Jewelry is a whole different beast. It’s almost never pure. Most of what we wear is 14k or 18k. That means it’s an alloy. 14k gold is only $58.3%$ gold. The rest is copper, silver, or zinc to make it durable enough to not bend when you bump into a doorframe. When you ask yourself "how do I sell gold jewelry," you have to realize the buyer is only paying for the gold content. They don't care about the craftsmanship. They don't care that it was your aunt's favorite piece. They’re going to toss it in a crucible and melt it down.
Then there’s the "scrap" category. Broken chains, single earrings, dental gold. Yes, people buy dental gold. It’s high quality, usually 16k or higher. Don't throw it away.
The Math Behind the Offer
Let's talk numbers because this is where people get confused and lose money. The "spot price" you see on Kitco or Bloomberg is the price for 100% pure gold in the professional markets. You are not a professional market. You are a retail seller.
To find your melt value, you need a scale that measures in grams or troy ounces. Note: a troy ounce is $31.1$ grams, not the standard $28.35$ grams you use for baking. This is a common point of friction. If a dealer weighs your gold in regular ounces, they are shortchanging you by about $10%$.
Here is the basic logic:
Multiply the weight by the purity. If you have 10 grams of 14k gold, you actually have $5.83$ grams of pure gold. Multiply that $5.83$ by the current price per gram. That is your "Melt Value."
Now, here is the kicker. No dealer will pay you 100% of melt. They have to make a profit. They have to pay for the refining process. A "good" offer from a local coin shop is usually $80%$ to $90%$ of the melt value for jewelry. For bullion coins, you should be looking for $95%$ to $98%$. If someone offers you $60%$, walk out. Don't be polite about it. Just leave.
Identifying Your Gold’s Purity
Look for the hallmark. It’s that tiny stamp you need a magnifying glass to see.
- 417 means 10k ($41.7%$ gold).
- 585 means 14k ($58.5%$ gold).
- 750 means 18k ($75%$ gold).
- 916 or 917 is 22k.
- 999 is 24k (pure).
If it says GP, GF, or HGE, it’s plated or filled. Basically, it’s trash in the eyes of a gold buyer. It’s a thin skin of gold over brass or silver. It’s not worth the gas it takes to drive to the shop.
Where Should You Go?
The "how do I sell gold" question usually ends with a choice between four places.
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Local Coin Shops (LCS): These are usually your best bet. Owners of coin shops are high-volume, low-margin people. They want to turn their inventory over fast. They understand the market better than anyone else and usually offer the most competitive rates for both coins and jewelry.
Online National Buyers: Companies like JM Bullion, APMEX, or Money Metals Exchange. These guys are massive. They are incredibly reliable and often pay better than local shops because their overhead is spread across thousands of transactions. The downside? You have to mail your gold. It feels sketchy to put five grand worth of metal in a FedEx box, but if you use registered mail and insurance, it’s actually very safe.
Pawn Shops: Only go here if you are truly desperate and need cash in twenty minutes. Pawn shops have huge overhead and they take a lot of risk. Consequently, they offer the lowest prices. Expect to get $50%$ to $70%$ of melt value. It’s a bad deal.
Refiners: Some companies specifically market to the public as "direct to refiner." Mid-States Recycling is one that often gets cited by experts. They usually require a minimum amount of gold (sometimes a few ounces), but they pay the highest percentage because they are the ones actually melting it.
Avoiding the "Hotel Buy" Scams
You’ve seen the ads in the local paper. "We are in town for three days only! Buying gold, silver, and antiques!"
Avoid these like the plague. These "traveling roadshows" are notorious for predatory pricing. They rely on the fact that they’ll be gone by Tuesday, so they don't need to protect their reputation. They prey on people who don't know the spot price. They’ll offer you pennies on the dollar, and because they have a professional-looking setup in a Hilton conference room, people trust them. Don't.
The Secret of the "Premium"
If you have a piece of jewelry from a major house—think Cartier, Tiffany & Co., or Van Cleef & Arpels—do not sell it for scrap. This is a massive mistake. A Cartier "Love" bracelet is worth way more than its weight in gold.
In these cases, you should look at specialty resellers like The RealReal or Sotheby’s Home, or even high-end local jewelers who deal in "estate" pieces. When you sell to a scrap buyer, the brand name is worth zero. When you sell to a collector or an estate jeweler, the brand name is worth $50%$ to $200%$ more than the gold itself.
Taxes and Regulations: The Boring But Necessary Part
The IRS considers gold a "collectible." This is annoying. If you sell your gold for a profit, you are technically liable for a capital gains tax of up to $28%$.
Also, don't be surprised if the dealer asks for your ID. Federal Anti-Money Laundering (AML) laws and the Patriot Act require dealers to keep records of who they buy from. This isn't them being nosy; it’s them staying out of prison. If a dealer doesn't ask for your ID, that’s actually a red flag. It means they aren't following the law, which suggests they might be shady in other areas—like the accuracy of their scales.
Speaking of scales, make sure the scale has a "NTEP" (National Type Evaluation Program) certification sticker. This means the scale is legal for trade and has been calibrated. If they’re weighing your gold on a plastic kitchen scale they got from Amazon, turn around and walk away.
Step-by-Step Action Plan
So, you're ready to move. Don't just wing it.
- Group your items. Put all the 14k in one pile, 18k in another, and coins in a third.
- Get a weight. Use a digital scale to get a rough idea of the gram weight for each pile.
- Check the daily spot. Go to a site like Kitco. See what gold is trading for right now.
- Call around. Call three local coin shops. Ask: "What percentage of spot are you paying for 14k scrap today?" A legitimate dealer will give you a straight answer over the phone. If they say, "You have to bring it in for us to see," they’re likely hoping to pressure you in person.
- Compare to online. Check the "Sell to Us" pages on APMEX or JM Bullion. Use their price as your "floor." If a local shop can't beat or match the online price, and you aren't in a rush for cash, use the mail-in service.
- Negotiate. Everything is negotiable. If you have a large amount—say, over an ounce—you have leverage. Ask for an extra $2%$ or $3%$. Often, they’ll give it to you just to close the deal.
Honestly, the biggest mistake is being embarrassed. People feel weird walking into a shop with a bag of tangled chains. Don't. These dealers see this every single day. It’s a business transaction, nothing more. Get your cash, get your receipt, and don't look back. Gold is a tool for preserving wealth, and eventually, that tool needs to be converted back into currency so you can actually use it.
Final Summary of Key Benchmarks
- Bullion Coins: Expect $95%-98%$ of spot.
- Gold Jewelry: Expect $80%-90%$ of melt value.
- Rare Coins: These have "numismatic" value. If you have an old gold coin that looks different, check a price guide like PCGS or NGC before selling it for its weight. It could be worth thousands more than the gold content.
- The "Wait" Rule: If you feel pressured, leave. The gold isn't going anywhere. The price might fluctuate a few dollars, but your peace of mind is worth more than a $10$ dollar move in the market.
Once you've done the math and called a few shops, you'll realize the power is in your hands. Most people get ripped off because they are "price takers." By doing ten minutes of homework, you become a "price maker." That's the difference between a successful sale and a story about how you got taken for a ride.