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What You Need to Know About Buying and Selling Gold

What You Need to Know About Buying and Selling Gold
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POSTED: Tuesday, December 14, 2010 - 2:39pm

UPDATED: Tuesday, December 14, 2010 - 4:18pm

EL PASO - NewsChannel 9 is doing a story tonight on gold and what you may or may not know about the precious metal.

We talked to John Silverman of J. Edwards Diamonds and he told us the following:

Here are some facts.. Because the price of gold is at an all-time high, practically every jewelry store in the country has joined in the gold buying frenzy. There are now jewelry stores, pawn shops, mail order companies and traveling buyers going town to town, all advertising that they buy gold.. and each offering to "pay more".

The truth is.. at $1,400 for an ounce of gold.. the price for one gram of raw material 14K gold is $26.33 per gram. The price for one gram of raw material 18k gold is $33.67 per gram.

The average person does not know how to calculate the value of gold from 24k pure to 14k alloyed or 18k alloyed and they do not know how many grams are in an ounce or what a gram of gold is actually worth. Because the average person has no clue what the value of gold is really worth, they can be easily taken advantage of and typically sell their gold for much less that it is really worth.

Gold is a liquid asset with a worldwide value... just like a dollar bill. Because people are aware of the value of a dollar, they would not sell a dollar bill for .50 cents. But because they do not understand the real value of gold and how it is calculated, people are selling it for substantially less than it is actually worth.

Anyone selling their gold should first have a knowledgeable person tell them what they have before they attempt to go into the market to sell it. They should know what their piece of jewelry weighs, what the karat content is and what the value of each gram is worth. Then they can shop around and determine what price they are willing to accept.

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