How Do You Sell Gold? A Complete 4-Step Strategy for Converting Your Precious Metals to Cash

Drive through most neighborhoods and you’ll spot them: jewelry store windows advertising “we buy gold.” With bullion prices hovering around $3,000+ per ounce, the temptation to cash in your stash has probably crossed your mind. Before you turn in that direction, understand what actually happens when you sell gold and how to maximize your returns.

Step 1: Know What You’re Selling

Not all gold is created equal. The first move is collecting everything you plan to liquidate, whether that’s inherited coins, jewelry, or bars.

Karat purity determines value more than anything else. 24-karat gold represents 99.9% pure metal and commands top dollar by weight. Lower karats contain alloy blends—14-karat gold, for instance, is only 58.3% pure. This matters because when dealers calculate how much they’ll pay, they’re buying the actual gold content, not the full weight.

Bullion (coins and bars) tends to sell faster, especially vintage or rare pieces that hold collector value beyond their melt-down worth. Estate jewelry—polished, restored, and resold—sometimes fetches slightly more than pure scrap rates. Damaged or tarnished pieces? Still sellable. Dealers will quote you on the gold content regardless of condition.

Step 2: Finding Buyers—Both Local and Digital

You won’t struggle to find someone willing to purchase your gold. Competition for buyers is fierce, which works in your favor.

Local options include your neighborhood jeweler, pawn shops, and specialized coin dealers. These businesses typically melt down jewelry and reuse the material, buying at scrap rates. Some estate jewelers offer marginally better prices if they can restore and resell a piece intact. The key advantage of local selling: instant payment and no shipping risk. The trade-off: limited negotiation power if you only have one or two nearby options.

Online platforms provide more choice but add complexity. Established exchanges with strong Better Business Bureau credentials exist, and numerous competitors operate in this space. The process involves packing, shipping, and waiting for a final valuation—meaning you won’t see cash immediately. However, online channels sometimes offer competitive rates and the ability to shop around without leaving home.

Step 3: Understanding What You’ll Actually Receive

Here’s where expectations collide with reality. The “spot price”—what a troy ounce of pure gold trades for on commodity markets—fluctuates daily and currently sits relatively high due to geopolitical factors. However, the spot price is not what you’ll pocket.

Why? Because dealers build in their margin. A 14-karat gold chain weighing one ounce won’t fetch spot price because the karat weight is only 58.3% pure gold. The math changes the payout significantly.

Individual buyers use different purchase formulas. Some online sellers are transparent: they might pay 90% of bullion value or up to 85% of refined jewelry value. Others negotiate differently. This variance is precisely why getting multiple quotes matters—different shops, different offers.

Step 4: Smart Selling Tactics

Verify legitimacy first. Research any buyer’s Better Business Bureau rating, read customer reviews, and confirm they’re licensed in your location. Reputable dealers won’t pressure you into selling after providing a quote.

Do your homework on pricing. Check current gold spot prices before walking into any negotiation. Use an online scrap gold calculator (freely available) to estimate what your specific karat and weight should yield. Armed with this data, you’ll recognize a fair offer instantly.

Collect competing bids. If you can afford to wait, get quotes from at least three different sources. Comparing local jewelers against online exchanges often reveals which option gives you the best combination of price and service.

Consider timing. You can always hold and monitor the market instead of selling immediately. Gold’s volatility means today’s price isn’t tomorrow’s reality—sometimes in your favor, sometimes against it.

Converting gold to cash isn’t complicated, but it demands attention to detail. Know your product’s purity, shop around, and verify that whoever you choose operates transparently. Those three habits will turn your precious metals into actual cash without regrets.