Cash for Gold is at Historic Highs

by Clem Adamson on March 20, 2010

The price of gold is at or near an all time high so getting cash for gold has never been more profitable. Many people have gold in their possession that is not being used. One of the biggest sources of unused gold is old jewelry. Jewelry seems to accumulate like kids toys. Whether it is given for an occasion, or handed down from family members, you end up with jewelry that may or may not fit your lifestyle.

The most valuable gold is pure gold and is designated as twenty four karat. It is generally considered
99.99 per cent pure. Gold in this form is very dense and soft. It is so soft that there are few applications for it because it will not maintain its shape if handled. That is why coins and jewelry made of gold are actually a combination of metals to give the gold strength while maintaining it’s color and luster. Jewelry is typically made from fourteen karat gold. Fourteen karat gold is approximately sixty per cent gold and forty percent other metals. The mixture of metals give the gold more durability and depending on the metal it is mixed with it can create a different color tint to the gold. The gold content of a piece of jewelry is typically stamped somewhere on the item. Though this is standard practice, the way you can actually tell how much gold is in a piece of jewelry is to chemically test it or use a spectrum microscope. The acid test is done by applying an acid solution to the piece. Depending on the type and amount of reaction the result of the test will determine the gold content. There are home kits for this purpose available, or you can take it to a goldsmith and they will perform the test on the article. It is important to understand that if you are looking to get cash for gold the price is determined by the weight of the gold in the piece of jewelry and not the total weight. So hypothetically, if you have a piece of jewelry that weighs one ounce and it is made of fourteen karat gold the actual gold weight is just over one half ounce. If you understand this formula going in you will have a better idea of what your piece of jewelry is worth for its gold content. When selling gold the payment is determined strictly on the weight of the gold, and the price per ounce that day, and no other factors.

The price of gold is driven by the commodities market. You are probably familiar with the commercials on television touting the importance of adding gold to your investment portfolio. These commercials have done two things. They have made the consumer aware of how to buy gold, and they have increased the demand through the perception of gold being a good hedge against inflation. You can take advantage of both of these facts by being a seller instead of a buyer in an up market. Right now, as attractive as it may seem to purchase gold, it may be a better time to sell gold. Demand drives up prices especially for scarce resources. With a relatively stable inventory of gold, over hundreds of years, large fluctuations over short periods of time are highly unusual. That being said, there are still cycles in the supply and demand that people can take advantage of on a periodic basis. If you are a seller, now is one of those times. If you have unwanted gold jewelry now is the time to act in order to get the maximum cash for gold.

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