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LOS ANGELES, CA, May 10, 2010 — As more and more people sell their broken or unwanted gold jewelry in order to raise fast cash in these economically-troubled times, it seems that very few sellers have any real idea about the value of the items they send-in to Internet buyers. That does not have to be the case. Mailing out gold items to Internet buyers can be a risk, since the number of buyers-and scammers too-have increased with the price of gold.

First, Understand How Gold is Valued

Let’s assume you have a heavy gold chain that you rarely wear anymore and want to sell for fast cash while the price is at record highs. The odds are that this chain is worth far more (in gold value) than it was when you bought it. However, you probably don’t know just how much that is, a fact that unethical buyers and out-and-out scammers know well how to take advantage of by low-balling the cash you receive.

Now, let us assume that this chain weighs approximately 20 grams. Gold is priced by the Troy Ounce, where 1 Troy Ounce contains 20 Pennyweights (DWT). Since there are 1.555 grams per Pennyweight, this gold chain contains 12.86 Pennyweights of gold.

At today’s spot market price of gold, $1,175.00/Ounce (20 DWT), you can now determine value by dividing 1,175 by 20 which tells you that each Pennyweight of gold in your chain is now worth $58.75. Your necklace of 20 grams contains 12.86 DWT. Its value, therefore is 12.86 X 58.75 =$755.52.

There is just one thing about this. It all depends upon the K (Karat) weight of the gold in the necklace. If it is marked 24K or 28K, that means 100% gold so the value shown above of $755.52 is what it’s worth. However, if it is marked 18K, for example, it only contains 75% pure gold and is therefore worth just $566.64.  If it is marked 14K, it has just 58.33% pure gold and will be worth somewhat less.

This is the process an Internet buyer uses to determine what each item you sent in is actually worth based upon assay and the current spot market price at that time. The final figure after assaying each piece and adding the figures together represents 100% of the actual value of everything that you sent. However, the buyer is running a business, so expect him to deduct a reasonable amount for his overhead and a small profit for the company.

Unethical buyers, counting upon the fact that you probably have no idea what your items are worth, may send you just 15 to 25% of actual value or, in the example of the 24K chain above, just $113.32 to $188.88. This IS NOT a fair and justifiable payout!

Your Best Defense is Knowledge

In the event that all these calculations seem way beyond your ability, there is another way. Take your items to a local jewelry store and ask him to give you a rough idea what your gold items are worth at the current spot market price for gold. He may charge you a few bucks for doing it, but in the long run you will know if an Internet buyer is ripping you off. You should receive at least 60-75% OF THE ACTUAL GOLD VALUE from an ethical buyer after he subtracts his overhead costs and a small profit from your item’s total value.

Also, keep in mind that any diamonds in your jewelry also have value and should either be appraised and included in your payout, or removed and returned to you.

Just as important, always check out any buyer you are using for the first time with the BBB (Better Business Bureau) and Internet complaint sites. If the company you are considering has a slew of ‘unresolved complaints’ from unhappy sellers, look elsewhere. This will also help you steer clear of out-and-out scams designed to steal your items and claim that they never arrived.

Cash for Gold Co always pays ‘the highest-possible percentage of the actual value of a seller’s property’ based upon assay and current spot market price. Learn more by visiting the company’s website at: http://www.cashforgoldco.com