Selling gold step by step
The process is short and it is the same almost everywhere. Knowing the order of it removes most of the room a buyer has to move you.
Step 1 - Sort and weigh at home
Separate by karat stamp. Pull out anything that is not solid gold: plated pieces marked GP, GF or HGE, watch bands with steel links, and anything with a magnet response. Gold is not magnetic, and a kitchen magnet is the fastest first filter you own.
Weigh each karat pile separately and write the numbers down. Take the note with you.
Step 2 - Watch the test
There are three common methods. XRF is a handheld scanner that reads the alloy without damaging anything and takes seconds - it is the best outcome for you. Acid testing scratches the piece on a stone and applies graded acid, which is accurate and mildly destructive. A touchstone comparison alone is the weakest.
If a buyer weighs but does not test, they are pricing by the stamp, and stamps are wrong often enough that they should not be trusted on their own.
Step 3 - Get the quote broken down
Ask for the offer as a rate per gram for each karat, not as a total. Then check it against the melt figure you calculated. If the buyer quotes per pennyweight, divide by 1.555 to get the gram rate before comparing - a pennyweight price is about 1.56 times the gram price for the same gold, and the larger unit makes an identical offer sound better.
Step 4 - Paperwork and payment
Expect to show government photo ID and to sign a record of the transaction. Most states require dealers to identify sellers, keep a description of each item, report purchases to law enforcement periodically, and hold items for a set period before melting them. That hold period is why a same-day change of mind is sometimes possible.
Payment is usually cash or cheque. Take a copy of the ticket with the weights and rates on it, whatever you are paid in.
Questions people ask
- How do I tell if my gold is real before I go?
- Check for a karat stamp - 585 is 14K, 750 is 18K, 375 is 9K - then hold a magnet to it. Gold is not magnetic, so anything that jumps is either plated or not gold at all. Neither test is conclusive on its own, but together they filter out most of what is not worth carrying.
- What is XRF testing and should I ask for it?
- A handheld scanner that reads the alloy composition in seconds without damaging the piece. Ask for it. The alternative, acid testing, is accurate but scratches the item, and a buyer who does neither is pricing off the stamp alone.
- The buyer quoted per pennyweight. Is that good or bad?
- Neither - it is just a bigger unit. A pennyweight is 1.555 grams, so a pennyweight price is about 1.56 times the gram price for identical gold. Pure gold is $142.02 a gram and $220.86 a pennyweight right now. Divide any pennyweight quote by 1.555 before comparing it with anything else.
- Can I change my mind after selling?
- Sometimes. Many states require dealers to hold purchased items for a period before melting them, which occasionally makes a reversal possible - but it is at the dealer's discretion, not a right. Decide before you sign.