Five Things to Know About Selling Gold

Gold prices hit a new high this week at more than $1,700 an ounce. If you are thinking about cashing in your gold, here are five things you need to know first. 

1. An ounce of gold jewelry isn't worth the same as an ounce of gold. Since pure gold is soft, other metals — or alloys — often are added when making jewelry, which results in the gold's karat rating. The higher the karat, the greater percentage of gold. For example, 24k is 99.9 percent pure, 18k is 75 percent pure, 14k is 58.5 percent, and that 10k college ring in your dresser is 41.7 percent pure. 

2. To further complicate the math, an ounce of gold isn't a true ounce, but a troy ounce, which at 31 grams, is not the same as a traditional ounce, which is 28 grams. 

3. The price of gold fluctuates with the markets. With the current economic uncertainties in the United States and abroad, many investors are buying gold. If the United States doesn't raise the debt ceiling, experts expect the price of gold to continue to rise. To check the latest market prices for precious metals, visit kitco.com. 

4. Before rushing out to sell everything in your jewelry box, keep in mind that sentimental value may exceed market value. An heirloom bracelet might be worth more to you as is than it would be to a jeweler melted down. Likewise, decorative gem stones typically do not add value to jewelry that will be melted down, so have them removed before selling. 

5. Shop around to get the best price for your gold. Like with most financial decisions, it is always a good idea to get at least three estimates — especially if you are heading to a gold party.