Is gold really that great an investment these days? Apparently not. In fact, if you haven't already cashed in on your gold jewelry, now might be the time for that trip to Dubai, where they're known for paying a pretty penny for your old gold.
Once upon a time, everyone was trying to invest in gold. But now, several key investors are actually dumping their gold and buying stock.
In April, gold prices actually fell 13 percent. Some might say that the gold bubble has come to an end. According to Fortune Magazine, even the struggling JC Penney stock is looking like a better bet than gold right now.
A quick background: JC Penney has been the black sheep of the stock market for quite some time. Back in 2011, Ron Johnson took to the helm of the flailing retail chain and became CEO. Stock prices went up when he took the lead. People had high hopes for JC Penney, thinking it could miraculously rise from the ashes. After all, Johnson was the man behind the famous Apple Stores and Target's new look.
Now that we've cleared the backstory, let's talk money. Recently, billionnaire investor George Soros bought a 7.9 percent stake in JC Penney-- after selling much of his gold investments, writes Fortune.
While the answer to this question on selling your gold varies from situation to situation, here is a list with ideas on the best way to sell your gold jewelry or other gold items.
Best way to sell your gold jewelry
- Get your gold appraised or valued. The very first thing you need to do is to find a jewelry appraiser. You need to know how much the weight of the gold is in your jewelry. Make sense? If you're wondering why you can't just weigh a piece of jewelry on a postal scale and figure out how many ounces you have, the reason is this-- a gold buyer will probably exclude the value of any stones or other gems on your jewelry piece. Also, you need an appraiser to tell you how many karats of gold your jewelry contains. The market price you see for gold is usually the price for pure gold. But most gold sold in America is not pure gold and you won't get full market price for gold that is under 24 karats.
- Get to know who the big buyers are: Try to locate a gold dealer or precious metals specialist. Note- your local pawn shop dealer is NOT a specialist in gold nor is he a gold dealer, no matter what he tells you. One good way to find the name of a precious metals dealer is to ask your appraiser.
- Find a local jewelry store or wholesaler. The higher-end stores might pay you better money for your gold than the cash-for-gold mail companies. They will certainly pay you more than a pawn shop.
- Sell your gold in the Middle East. This might be tough if you don't often travel to Dubai, but the Dubai gold market is really where it's at as far as gold buyers are. If you know your way around Dubai, you're bound to get top dollar for your gold in the Dubai gold market.
- Understand gold prices. The price fluctuates daily but the buyers set their prices early in the day. Consumerreports.org has a calculator to help you figure out what your gold might be worth on any given day, if you know how many karats your gold has.
- Look up online cash for gold companies. There are some companies that promise to buy your gold, by sending you a convenient envelope in the mail. These aren't my first choice for selling gold but sometimes, you just don't have access to a gold dealer and you don't travel to the Middle East , then the online cash for gold companies might be your best bet.