It seems the ads are everywhere on TV today – send in your gold jewellery and you will be sent a cheque in return. But are these companies worth it? Here are five points to consider if you are planning on selling your gold.

1. Research
Just because the offer sounds good, it doesn’t mean it is. It is worth getting an appraisal from several local jewellers or several of these online companies so that you can compare prices. Also have a look at reviews online to ensure that the company you are thinking of selling your gold to has a solid, dependable history.

2. How much is it worth?
Just because your gold necklace, bracelets or rings are stamped as 14-Karat, it doesn’t mean they are pure gold. Some jewellery wil have their catches stamped like this, however the number means little and the rest of the piece could be another metal merely coated in gold.

3. The price of gold
Just because gold is worth ‘x’ per ounce, it doesn’t mean you will be paid ‘x’ for every ounce you send in. The ounce quoted is for pure gold only and it is unlikely that you will have pure gold to send in. For example 14-Karat gold is actually just 58.5 percent gold.

You will need to check the company’s going rate for particular versions of gold – the less gold content, the less you will be paid.

If you have precious stones set into whatever you are sending, it is worth seeing how much the tones are worth. Small gold stud earrings may be worth just $10 in gold, however if they have diamonds in them, these could retail for a lot higher. It is worth asking a jeweller if they can break the stones out from the item before you send it on.

4. Insurance
Always make sure your items are insured when shipped and make sure you keep the proof of their value in a safe place. Many companies will send you a pre-paid envelope which will carry insurance on it however check the terms and conditions carefully so that you understand what happens if either the items get lost in the post, or if the company themselves lose the items.

If you are sending multiple gold items, make a list of the items included in the envelope, place one copy in the envelope along with the gold items and keep one copy of the list for yourself. It may also be worth taking detailed photographs of the gold pieces you are sending including photographs of any distinguishing marks or features.

5. Company Guarantees
If you are not happy with the price offered, can you get your products back? Most companies will melt down items in two weeks of the cheque being issued so ensure you read the company policies carefully so that you don’t get caught out. If you are sending back a cheque, include a note asking for a ‘return receipt requested’. It may even be worth sending it so that a signature is required at the other end so that you have proof the cheque arrived back at the company.

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