NEW YORK (MainStreet) — It’s a bull market for gold out there, with gold selling for $1,877 an ounce after broaching $1,900 the day before, and while you may not own any gold bars or shares of a big South African gold mine, you may be able to take advantage of the times.
That tennis bracelet or gold coins you got for graduating from high school can be sold – and at a big profit.
The key is to know what you have (and its presumed value), know your buyer, and be realistic. Chances are good that you can cut a good deal on your own gold sale. Let’s look at what you need to know to sell your little piece of the gold market.
Get the right weight. The Better Business Bureau notes that certified gold dealers may be a good place to sell your gold, but they’ll try to get all the leverage they can. For example, a crafty gold dealer will weigh your gold using a standard measurement called a Troy ounce, but as the BBB warns, “Some dealers may also use a system of weights called pennyweight (dwt) to measure a Troy ounce, while others will use grams. A pennyweight is the equivalent of 1.555 grams. Be alert that a dealer does not weigh your gold by pennyweight but pay you by the gram, a sneaky way for the dealer to pay you less for more weight of gold.”
Know the market price. Gold sales are a lot like used car negotiations – they go by faster than you think and the party who isn’t prepared is the one who walks out with the worse end of the deal. Job one is to always know the price of gold that you’re about to sell. Before you strike a deal, or even talk about striking a deal, check out TheStreet’s gold page with daily updates on the price of gold.