When my grandmother passed away, I inherited a small gold chain. It wasn't fancy, but it meant something. A few years later, when I needed cash, I decided to sell it. I walked into a local pawn shop, handed it over, and took whatever they offered. It wasn't until afterwards that I learned I'd probably left money on the table.
Here's what I'd do differently now.
The first thing nobody tells you: weight matters more than looks
That chain looked delicate. Turned out it was 14 karat and weighed almost 8 grams. I had no idea what that meant. The guy behind the counter did a quick test, mumbled a number, and I said yes. I should've at least known the basics.
Gold buyers care about purity (karat) and weight (grams). The rest — design, brand, sentiment — doesn't change the melt value. A scratched 18k ring can be worth more than a shiny 10k bracelet. Knowing those two numbers before you walk in puts you in a much better position.
Karat markings are usually stamped somewhere on the piece. 24k is pure gold, 18k is 75% gold, 14k is about 58%, and 10k is around 42%. If you can't find a stamp, a jeweller can test it, often for free or a small fee. Weight is trickier without a scale. Kitchen scales sometimes work for heavier items, but for thin chains or small rings, a jewellery scale is more accurate. You can pick one up cheap online if you're planning to sell a few pieces.
Spot price is your reference, not your offer
I'd heard of "gold price" in the news but never connected it to jewellery. Turns out there's a daily spot price, and buyers typically pay a percentage of that — often 70–90% depending on who you sell to. If you don't check the spot price, you're guessing. If you do, you can tell when an offer is fair or low.
The spot price is quoted per troy ounce. Most jewellery is weighed in grams, so you'll need to convert. One troy ounce is roughly 31.1 grams. It sounds complicated but it's just basic math once you have the numbers. Markets change throughout the day, so use the price from the morning you're comparing quotes. That keeps things consistent.
Where you sell changes everything
Pawn shops, jewellers, refiners, and online buyers each pay differently. Pawn shops are convenient but often offer less. Refiners can pay more if you have enough volume. Online buyers sit somewhere in between. I sold locally because it was quick. Next time, I'd at least get two or three quotes.
Pawn shops need to make money on resale or scrap, so their offers reflect that. Jewellers sometimes buy to add to their inventory, but they're picky about what they take. Refiners melt everything down, so they care only about purity and weight — no sentiment, no design. That can mean a higher percentage of spot price if your piece is straightforward. Online mail-in programmes are another option. You send your gold, they test it and send an offer. Read reviews first. Some are legit, others lowball and bank on people not bothering to send it back.
Simple math before you go
You don't need to be a metallurgist. You need: karat, weight in grams, and today's spot price. From that you can estimate the melt value. I used to think that required a spreadsheet. It doesn't. There are free tools that do it in seconds. I've since used a free calculator at mygoldcalc.com to double-check numbers before getting quotes — helps avoid lowball offers when you're dealing with inherited or unwanted gold.
Once you know roughly what the metal is worth, you can judge offers. If someone offers you half of that, you know to walk away. If they're in the 75–85% range, that's usually in the ballpark. The exact percentage depends on the buyer, your location, and how much you're selling. But having a number in your head changes the whole conversation.
Don't rush
I sold the chain the same week I decided to. A bit of research and a few extra days would've likely gotten me a better deal. Gold prices move, but not wildly day to day. Taking a week to compare offers rarely hurts.
If you're sitting on inherited jewellery or scrap gold, a little homework goes a long way. Check the karat, weigh it, look up the spot price, and run the numbers before you sell. You might not get rich, but you'll get a fairer deal.