If you are thinking about selling gold in order to make some extra money, whether for the upcoming Holidays, or simply to help out with the bills, congratulations. Selling old and unwanted gold is a great way to make some extra cash on the side with little or no hassle. It’s no secret that the price of gold has been increasing for the past couple of decades. This increase in price has sparked a booming cash for gold industry that has seen many competitors and businesses trying to get their share on everyone selling off their old gold jewelry. One of the major decisions when selling your gold is whether or not to sell locally at a pawn shop or local cash for gold company, or to sell online. Here are a few questions to ask yourself before making your decision.
How long can you wait for the money?
This is one thing you must consider before deciding on going with an online cash for gold company or a local jewelry buyer. The process for selling your gold online is much longer than the process of using a local cash for gold company. With an online business, you will need to request the gold kit or package, wait for it to arrive, pack it up and send it in the mail, wait for the company to receive it, assess your gold, and cut you a cheque. This entire process can take upwards of two or three weeks.
On the other hand, if you need money right away you can simply walk into a local gold buyer and walk out with cash in your hand in a matter of minutes. If the speed of getting your cash is an issue you will definitely want to go with a local company.
Do you want to get the most money possible?
I think this is a no brainer, but it is definitely something to consider. Historically, the online businesses typically pay more money for your gold gram per gram than the local guys do. This is because of a much lower overhead cost in not having to operate a store front. However, there have recently been many local gold buyers in a variety of cities (especially Toronto, Vancouver, and Ottawa) that have been claiming they pay out more than the online buyers.
How much risk are you comfortable with?
Although there are rarely any cash for gold scams anymore, they still can occur. Hopefully you will do your research on any cash for gold business before working with them, but there is much more risk to dealing with an online company than someone face to face. Not only will you need to worry about not having seem the people you are sending your gold to (which can be uneasy for some people to begin with) but most gold kits are only insured for up to $100, which means that losing a kit in the mail (which does seem to happen) can be a big loss of money.
If you are not comfortable with that kind of risk, and would like to have the process as risk-free as possible, definitely consider going with a local buyer.
How are your negotiation and sales skills?
If you enjoy bartering a markets and like the negotiation process when buying a car, you will definitely enjoy dealing with local cash for gold companies. Most local jewelry buyers do not have their price per gram posted, which means they typically make an offer after they weigh your gold and the cash for gold negotiations start from there. It can be rather entertaining and fun if you are into that sort of thing.
However, if this bothers you or you would rather not have to deal with the back and forth of a negotiation, dealing with an online business is probably for the best. They have all their prices listed on the website, and what they offer you is nonnegotiable. It’s possible to find a local dealer that operates this way, but many do not.
Do you enjoy support local businesses?
Lastly, if supporting your local economy and local businesses is important to you, then it goes without saying that you should probably deal with a local cash for gold store. Local economy is important to many cities, especially smaller cities, so this might be something to consider if you are on the fence.
Hopefully this helps you make up your mind if you are debating between local or online cash for gold dealers. If you have anything to add or would like to ask a question, just use the comment box below.