Should you sell old gold as prices hit record highs?

Aug 24th, 2011 | By | Category: Everything Else

As U.S. and global markets take a dive into negative territory, it may seem like a great opportunity to sell that old gold necklace you have been holding on to. Before you take the leap to gain some extra dollars, here are a few things to consider:

Stay away from online “cash for gold” websites. They usually do not pay the full value of your items and they can use fine print to pay you even less than what they originally promised

Be wary of “cash for gold” television advertisements and offers sent through mail and email. These buyers often target retirees with the allure of a quick high price. You normally end up with much less then what your gold was actually worth and it can sometimes take longer than expected.
Realize that selling your gold is forever. Companies melt gold down, making it difficult if not impossible for items to be returned if you change your mind.

If you want to sell your gold, find a local company with a good reputation. Check out and screen potential companies on the Better Business Bureau website at http://alaskaoregonwesternwashington.bbb.org/Find-Business-Reviews. You can also look for and compare local dealers in the Yellow Pages. Get more than one local appraisal to guarantee you get a fair price for your valuables.
Gold is trading at an all time high; even so, it might not be the best time to invest your money in this area. Gold tends to be a volatile commodity and may be a better short-term trading vehicle then a long-term investment.

The guidelines and scams for selling gold can also be applied to hard assets including diamonds, silver and coins. When selling your precious items, be careful: contemplate your decision thoroughly, do proper research and make sure that the benefit outweighs the risk.

Alexandria Criss is a Client Relations Manager with Financial Insights, Inc. in Tacoma.

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