By Lisa Fickenscher
Looking to unload a stash of old jewelry to cash in on soaring gold and silver prices? First do some digging if you want to secure the best deal possible.
Figuring out where to shop and how much you should expect to get paid for your uncle鈥檚 old Rolex and grandma鈥檚 chunky brooch can be daunting. Experts advise doing your research before you hit the shops 鈥 including and especially talking to friends and colleagues who have traded their gold.
鈥淎 lot of our business is word of mouth,鈥 Alon Mirzaev, co-owner of US Gold Refinery told The Post.
New York City鈥檚 Diamond District, with its mazes of kiosks and fast-talking specialists, may be intimidating for first-time gold traders. Nevertheless, it鈥檚 the biggest of the US鈥檚 four big-city jewelry districts 鈥 and may offer the best chance to fetch a good price for your goods because there is so much competition.
鈥淚 would recommend going to larger, more active markets, like 47th Street in New York or Jewelers鈥 Row in Philly so you can more easily get multiple offers to compare,鈥 said diamond analyst Paul Zimnisky.
While the Big Apple鈥檚 is the most prominent, Los Angeles and Providence, RI are also known for their jewelry districts.
But before you hit the counters, it鈥檚 also crucial to educate yourself. Below are a few key tips from the professionals:
Ask your friends 鈥 and check online reviews
The best tips can often come from friends who鈥檝e had good and bad experiences alike trading their jewelry. If you can drop a friend鈥檚 name when you walk into a shop, that can give you another leg up before negotiations even start.
Once you鈥檝e mined your own networks and connections, look for positive reviews online on Google and Yelp 鈥 and avoid businesses with a bad rating, said Lee Edelman, a precious metals processor and trader in the Diamond District.
鈥淢ake sure you don鈥檛 go to someone who has a bad ranking on BBB,鈥 Edelman advised.
Shop around before the deal
Edelman likewise recommends that anybody looking to do a major transaction visit multiple storefronts before making a decision 鈥 and be prepared to weather any protests from shopkeepers.
鈥淚f you have a fair amount of gold or silver to sell, go to at least three places,鈥 Edelman says.
In New York, make sure those three are among the so-called 鈥減recious metals dealers鈥 who are licensed by the city鈥檚 Department of Consumer and Worker Protection to both buy and sell to retail customers.
The latter is important and speaks to a business owner鈥檚 鈥渉onesty,鈥 according to Mirzaev.
There also may be some red tape involved: Licensed dealers are required to hold onto items for at least two weeks after agreeing to buy them in order to ensure they are not stolen. They also will require you to fill out paperwork and make a copy of your government issued ID.
鈥淚f you are selling stolen goods you are not going to come to my business,鈥 Ben Tseytlin of Bullion Exchanges said.
Get the latest pricing
It鈥檚 also crucial to get current on the latest market prices for the metal you鈥檙e looking to sell. Searches on Google, Yahoo or financial news sites like the Wall Street Journal or CNBC are a good start.
In the case of gold, those prices have skyrocketed of late 鈥 and are bouncing around on a daily and weekly basis. Gold hit an all-time high of $3,500 in April. On Tuesday, it was changing hands at $3,350.
Spot prices for gold, silver and platinum can also be found on sites operated by reputable dealers like APMEX or Kitco.
Prospective gold sellers also should be aware that fees will be a part of any transaction, adds David Gavriel of Fantasy Jewelers, located at 77 W. 47th St. Typically, those range between 1% and 5% depending on the size of the deal.
鈥淚f we are paying $1,000 for a gold bracelet, we might charge a 5% fee, but if we are buying $100,000 of gold, the fee might be between 1% and 2%, Gavriel said.
Consider buying a scale
If you have a lot of items to sell, or think you may end up doing this more than once, consider purchasing a scale that can measure in troy ounces, Gavriel recommends. They can be bought on Amazon for less than $20.
Yes 鈥 a jeweler can also weigh your items in front of you. But it鈥檚 not a bad idea to have your own measurements at hand as you consider the offers you鈥檙e getting, several experts said.
鈥淭here are honest and dishonest business people鈥 in the district, so every bit of research ahead of time helps, said Ben Tseytlin, chief executive of Bullion Exchanges at 30 W. 47th St.
Also know that it鈥檚 not just a question of weight. Gavriel鈥檚 shop uses a $35,000 device called a precious metal analyzer that measures gold, silver, platinum or palladium to determine whether it鈥檚 10-, 14-, 18- or 24-carat.
Take a close look at what you鈥檝e got
Before you commit to sell, make sure you don鈥檛 have something that鈥檚 worth more than its weight in gold.
Patek-Philippe watches and antique Tiffany pendants are obvious examples. But also make sure your gold coins aren鈥檛 mere commodities to be piled onto a scale.
This week, for example, David Gavriel at Fantasy Diamonds directed a customer to another dealer who specializes in rare coins after he was presented with a small gold piece that he estimated contained $300 worth of gold 鈥 but which was likely worth more than $3,000 to a collector.
Be an early bird
If you鈥檙e looking to get cold, hard cash for your gold instead of a check or bank transfer, don鈥檛 wait until the end of the day. While business on 47th Street has been booming for months, jewelers still face limits from banks on the amount of hard currency they can hold at the store.
鈥淐ome in earlier in the day to ensure that you get cash if that鈥檚 what you need,鈥 says Mirzaev.
That said, don鈥檛 expect cash at any time of day if you鈥檙e coming in with a big haul that鈥檚 worth several thousands of dollars.
鈥淲e don鈥檛 give cash for anything over $2,500,鈥 Tysetlin says.