Thinking of selling your gold? Here are 7 things you need to know.

Love him or hate him, Donald Trump’s fresh take on global politics has turned the world economy on its head, and the big winner is… gold. Never has the saying, “All that glitters is gold” been more true. The price of gold has skyrocketed. Since the Pharaohs of Egypt (and even before), gold has been a symbol of wealth and power. It’s taken astronauts to the moon, it’s adorned some of the most prized landmarks in the world – gold dust is even sprinkled on food these days. But, as with all things in life, it comes with its fair share of trials and tribulations, which means it’s not for everyone.

Here are 7 things you need to consider before selling your gold:

1. Gold is risky to keep

Unless you’re living in Fort Knox, gold can be vulnerable, which means it comes with an emotional price tag attached long after you’ve bought it. It’s a firm favourite of the criminal element. It’s the first thing that gets taken if you’re confronted and you’re wearing it, and robbers will seek it out if your home is ransacked. For some people, this is more pain than pleasure, so unless you’re a serious collector, it might be sensible to offload it at a price that matches its value.

2. Gold can also be expensive to keep

From insurance costs to the replacement value if it gets stolen, gold can drain your coffers instead of replenishing them. For example, a rule of thumb is that gold jewellery will cost you about 25% of its value to insure. So if your favourite aunt left you a gold chain that’s valued at R50,000, it will cost you about R12,500 per year to insure it – that’s over R1,000 per month. And of course if you decide not to insure, and aforementioned robbers do manage to get their hands on it, then poof – like magic, it’s gone for good.

3. Yes, gold “rusts.”

Okay, this is only partly true! Like most metals exposed to air, gold oxidises and develops what is called a patina. It’s not as bad as silver, which tends to lose its shimmer and go black, but gold can also develop a lacklustre look if it is not maintained properly. Cleaning will remove the oxidisation, but scratches, bumps and dings can crater the gold and make it look old and worn – and use will wear it down and may cause it to snap or break. So unless you’re a gold collector with a flair for antiques (ah, a person after our own hearts), you might decide that it looks better on someone else.

4. Second-hand gold is usually sold for less than it could be

The local cash-for-stuff store down the road may look like a good prospect for a quick and easy sell, but the opposite in Latin for caveat emptor (buyer beware) is caveat venditor (seller beware). Some stores, even with the gold price going through the roof, will offer as little as R150 to R200 per gram of 9ct gold (maybe double if the gold is 18ct). They do not usually pay for the stones in rings, bracelets or necklaces (or a tiara if you’re Kate or Camilla!), so this value is automatically lost when selling. Selling precious items should be about fair exchange, and while it is also true that you will never get as much for a second-hand piece of gold as you would pay for one in a jewellery store, there are some unscrupulous dealers out there who will prey on your lack of knowledge.

5. Shop around, and look for a gold dealer that you can trust

Related to the point above, it’s not a bad idea to build a relationship with a dealer that you know, who you also can sense will offer you fair exchange. Do your homework online – everybody has a digital footprint these days. You want a dealer that is discreet, knows their stuff, and can be trusted to securely offer you fair exchange, so that you walk away feeling you’ve made the right call. Questions you can use to prompt your search engine or AI platform may include where can I sell my Krugerrand, where to sell diamonds, where to sell gemstones, where to sell pearls, diamond buyers near me, and antiques buyer near me.

6. Need the cash? Think with your head.

The truth is, we’d all like that pie-in-the-sky three-month cash cushion that you need when the chips are down and the financial bottom has fallen out. But in tough economic times (and this is a global phenomenon), liquid cash is better than an asset that you’re not really doing much with – nor do you have a vision for it in your future. Even so, it’s important to not rush headlong into the first store that comes along and offers you peanuts. After the initial euphoria/relief of a much-needed cash infusion, you will regret it later if you were too hasty. Have the discussion you need to with loved ones – especially where ownership is shared. Are you on the same page? Is this the right strategy for your needs right now?

7. If you’re downsizing, selling gold may be a good option

Our real estate friends remind us that moving is drama, trauma and stamina all rolled into one. Research suggests that moving house (or flat or complex) is the Mount Everest of stress, so still having to account for the little bits of gold that you have packed away in a box can just add to the heap of things on the To Do list. Many a family has moved and can never quite find the box that the gold was packed into. In the ensuing chaos of it all, it was just overlooked – so maybe it’s tucked into a box under a box somewhere in the new place, or maybe it accidentally on purpose fell off the back of the removals van. If you’re downsizing, and the extra gold that’s been cluttering the old jewellery box has gone unused for years anyway, perhaps now is the time to convert it into cash and invest it – or spoil yourself on that long-overdue trip to the Maldives.

Ready to take the plunge? Chat to us for a no obligation, honest and private conversation.

Sometimes age is a blessing, and at J&J Antiques and Collectables, that’s certainly the case! We’ve been around the sun many times, and have helped people from all walks of life make informed decisions about their physical assets. Please connect with us if you’re thinking of transforming your wealth from gold into cash – we’d love the chance to help.
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