CINCINNATI — The price of gold has surged to an impressive $3,700 an ounce, significantly increasing the value of gold jewelry. Despite this spike, many sellers are finding themselves disappointed by the payouts they receive when selling their items.
Gold-buying stores and jewelry shops have experienced a surge in customers looking to cash in. Local seller Kurt Shearer shared his strategy, stating, “It is stuff I don’t wear anymore, so why not bring it here?” However, sellers often have to temper their expectations regarding the actual amount they will receive.
BJ Foreman, a representative from Boris Litman Jewelers in Madeira, Ohio, highlighted several reasons why payouts might not meet sellers’ hopes. A critical point made by Foreman is that buyers or stores usually take a small percentage from the payout, which helps them offset operational costs. Additionally, the composition of the gold being sold can significantly affect its value. For example, 14-karat gold consists of only 60% gold, with the remaining alloy elements contributing minimal value after melting down.
Furthermore, sellers might unknowingly attempt to sell items that are gold-plated rather than solid gold, which drastically reduces their worth. As Foreman noted, “Just because the clasp on a bracelet says 14 karat, doesn’t mean the bracelet is.” There are even instances where items stamped as 14-karat gold are counterfeit, which can leave sellers feeling misled.
Understanding the market can also provide clarity on what sellers can expect. A thin, 10-gram 14-karat gold necklace is likely to fetch approximately $400 in the current market. For many, even this amount can be seen as beneficial, even if it falls short of their initial expectations. Therefore, potential sellers are encouraged to bring their gold or silver to local jewelers while keeping in mind that offers may be less than anticipated due to the factors mentioned.
Ultimately, while it may be easy to feel taken advantage of in these transactions, Foreman reassures sellers that they are typically not dealing with pure gold, and receiving any cash for unwanted items can still be a worthwhile endeavor.
