What makes the gold-buying industry so complicated (and how we can help)

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Navigating the many angles of how the Canadian precious-metals industry works can be difficult at first. Whether you’re interested in selling jewellery or coins or antique items, you have to recognize the nuances of how buying gold works. Then, you can be best prepared to get top dollar for the items you’re looking to sell for cash.

First, you want to learn about the Canadian gold price and how it moves up and down the dial. In our blog post on understanding the gold price in Canada, we wrote how when the Canadian dollar goes up, the price of Canadian gold goes down.

We went on to explain: “The US-to-Canada exchange rate plays a role in how we get the Canadian gold price from the American equivalent.  What helps to comprehend is how the gold price is just like any stock that rises and falls. So the stock market and the state of the US dollar influence the state of the Canadian gold price.”

It should also be noted that the price of gold has inched higher during the pandemic, so much so gold “is experiencing an unprecedented shift in value amid the pandemic confusion and is trading at its highest level since April 2012.” That kind of news bodes well for anyone looking to make extra cash selling jewellery or other gold items to collectors intent on accumulating more of the precious metal.

Now let’s learn about the main sticking point on what makes the gold-buying industry so complicated. To sum it up: bad actors aiming to give you a raw deal. Shady players who are in the buying gold game to make a quick buck and rarely give sellers the true value of their items become rotten apples ruining the bushel for the rest of us.

You want to avoid shady gold buyers like a COVID cough. How do you spot them? They often don’t advertise their prices online or in-store, and they don’t weigh your items in front of you, if you visit their outlet in person. Their website may look unprofessional and haphazardly designed, which can be a signal they aren’t taking their business very seriously.

You want to read as many referrals and testimonials as possible about a gold buyer. You can discover other people’s experience with the outlet by checking out some reviews on Google and other networks.

Also, we recommend testing any spot you are unsure of by bringing in a piece, if you’re selling jewellery for example, that you have taken to several different stores. If they offer you less than the average of what you’re getting elsewhere, factoring any changes in the price of gold, they are probably not a business that you want to interact with in any way.

Another warning sign, as illustrated by a report on TheStreet.com, revolves around television hucksters who promise the highest prices, and any dealer that charges a price for storing your gold. Both of those schemes do nothing but distract you from the low-ball price they’re offering you.

It’s also smart to know what you have, as much as you can. As Jewels of America notes, gold jewellery is rarely made from pure gold. Most jewellery in the US and Canada is 10-, 14- or 18-karat gold “that is comprised of gold and other alloys. When selling your gold, you will only get paid for the parts that are pure gold.”

Some people selling jewellery or other gold items might be turning to businesses buying gold that seek to melt it down. But do your homework first before making this decision. ABC News reports on an antique dealer with a must-read anecdote: “Before you sell a gold item to be melted down for scrap, make sure it’s not worth more in its present form. Brian Witherell, operations manager of Sacramento, Calif., antiques dealer Witherell’s, gives this example: A seller brought him an antique item—a small gold watch fob made in the shape of a railroad spike. ‘It was a little thing,’ Witherell recalls, and would not have brought much as scrap. Upon inspection, the fob turned out to have been fashioned out of gold left over from making the famous full-sized golden spike used in 1869 to commemorate completion of the transcontinental railroad. At auction, it sold for $20,000.”

Our informative blog posts on Gold.TO can educate you on the many aspects of selling your gold jewellery or coins or antiques to reputable buyers, whether you’re new in the industry or an experienced collector. Our goal is to help you find honest gold buyers amid a crowded landscape of folks who seemed to have popped up on almost every busy intersection in Toronto and beyond.

One more tip: Don’t get anxious by how overwhelming this process may get. Realize you don’t have to shop around to EVERY gold buyer available, but instead do the research online so you don’t waste your time with shady players. The less stressed you get about selling your jewellery and gold, the higher chance you’ll have of making a wise and strategic decision that will net you the most value for your items.

The most important factors in a gold buyer are dealing with someone who treats you with respect, offers a transparent process with good reviews, and above all, advertise their buying prices.

We’re available 24/7 if you have questions about anything related to selling or buying gold. Get in touch with our precious-metals specialists by visiting our contact us section and we’ll reply as soon as possible.

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