Selling Gold Locally
Pros And Cons Of Selling Your Gold Jewelry To A Local Buyer
When most people think about selling their gold jewelry, they immediately consider taking it to a pawn shop or local jeweler: selling gold locally is usually the first option. These places have traditionally offered the best options. Today, however, there are alternatives. You can sell your gold bracelets, cuff links, chains, and watches online. Not only is doing so more convenient, but it will also produce a better price.
Despite the large number of online gold buyers, many people continue to sell their jewelry to pawn shops and jewelers. The trend seems to be accelerating as the price of gold continues to climb to record heights. Given this, it’s worth taking a close look at the advantages and drawbacks to selling your old gold jewelry to a local buyer.
Pro 1: Instant Cash In Hand
A pawn broker or jeweler will give you cash immediately for your gold jewelry. You can walk into a pawn shop with your gold chains, earrings, and brooches, and walk out with money in your pocket or purse in less than twenty minutes. If you are in financial dire straits and desperate for funds, this may be a good option. It is worth mentioning that a reputable online buyer can usually mail a check to you within a single business day.
Pro 2: Personal Oversight Of The Transaction
Another advantage of selling gold locally is that you’ll be able to personally manage the transaction. You can look the buyer in the eyes, and talk to him or her before agreeing to sell your gold pins, pendants, and old class rings.
A lot of people find this personal touch reassuring. There is a perception that someone is less likely to take advantage of you if you speak with him or her personally. Whether this is true, of course, is debatable.
Con 1: Low Price For Your Gold
The main drawback to selling your gold jewelry to a local buyer is that the price you’ll receive will be low. For example, if the intrinsic worth of your collection is $500, you may only receive $250. It’s important to understand why this happens.
Local buyers (mostly pawn brokers and jewelers) will only purchase your gold jewelry if they are confident they can sell it for a profit. A pawn broker may first try to sell your watches, chains, and bracelets to his customers. Failing to do so, he will likely sell them to a dealer. The jeweler will do the same.
The dealer is essentially a broker, which means he or she will sell the pieces to another buyer. The dealer makes money based on the difference between the purchase and sell prices. Because each step represents a brokered transaction, profit is shaved off along the way. This is the reason a local business can only offer a low price. There is no other way for the buyer to make money.
When you sell your gold necklaces, rings, and pendants to an online gold refiner, you remove the middlemen. This means you’ll be paid more money for your pieces.
Con 2: Lower Likelihood Of Selling Broken Pieces
Another drawback is that local buyers may be unwilling to purchase broken or damaged jewelry. Consider the pawn shop owner. As mentioned, he or she will try to sell your jewelry to their customers. A gold watch with a cracked face, a tangled or broken necklace, and unmatched earrings are unlikely to sell. For this reason, the pawn broker will either refuse to buy them, or offer a very low price.
An online buyer is interested in the precious metal content of your pieces. Whether your jewelry is damaged or broken is irrelevant.
Con 3: Fewer Alternatives
Your city may have several potential buyers. If the first one offers an unacceptable price for your jewelry, you can visit another. But even here, your options are limited since each buyer will be operating with the same limitations.
Online, there are hundreds of potential gold buyers who will compete to buy your jewelry. Comparing offers is not only easier, but is likely to yield a much better price.
Should you sell your gold bracelets, rings, and watches to a local buyer? Perhaps if you need the money immediately. Otherwise, you’ll make far more money selling them to an online gold refiner. Selling your gold jewelry locally can be a good decision, but be sure to explore all your options when trying to sell your gold locally or through an online gold buyer.