The cash-for-gold companies are touted as a bad option, but you can definitely find good reputed firms while trying to get cash for gold near you. Besides getting cash against your gold, you can also explore the option of getting a loan against your gold or other precious metals. You will obviously be required to deposit your jewelry at their facility for the cash loan. Banks and private lenders conveniently offer this service. The response rate is usually quicker compared to getting a traditional loan, and the paper work is also rather limited, since they are already getting your gold as a guarantee of repayment. But this option should be researched and analyzed carefully before making the plunge.
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Understanding The Metrics When Getting Cash For Gold
Let's delve deeper into the world of cash for gold:
Going for Loan
Yes, you can secure a loan against your gold as pledge, and when you pay back the amount along with interest/ mark-up you get your gold back. Going for this sort of trade-in, you'll be required to fill your details in a form - a contract with all the terms and conditions, and that's about it. Hand over the gold and get the cash. The greater the gold you pledge, smaller the interest rate you get and vice versa. It is a plausible option, but be wary of the firm or bank you are choosing, and do read through the contract in detail.
The terms and conditions are similar when you go for a mail-away service, though we highly recommend visiting a gold shop to get your gold evaluated.
As narrated earlier, since the loaning agency, whether you opt for a bank or a cash for gold firm, has already got their loan covered in form of pledged gold, they offer relatively low interest rate and will be nicer when it comes to repayment.
Don't Hesitate
Once you are there, don't hesitate to ask for your ornaments back, since they won't be considered while weighing. Most firms do oblige and remove stones for free, however same can't be said for banks.
Understand the Scales and Weigh your Gold
Weight of the gold in karats is the determining factor of possible resale value, so pay attention. For instance, the mostly used Troy ounce is equal to 31.1 grams of gold. Now dealers may use a penny weight, which is equivalent to 1.55 gram to measure Troy ounce, but will pay you in grams.This way they will get more weighing gold and you will get less value.
Now coming to karat, gold itself is too fragile to be used purely for ornaments, so it is mixed with other metals. The purest form of gold is 24Karat gold, and anything less than 10 Karat is not considered gold. The US regulations state that the Karat value should be mentioned while being sold in the US.
A word of advice:People make mistake of mixing all their jewellery and submit for weighing.The buyer will weigh all and evaluate it close to the lowest karat value. This way you will end up losing a big chunk of money. Hand over the items separately and weigh them independently.Don't get in a rush to take money. If you believe you are not getting the money equal to your gold's worth, borrow some money to fulfill your needs.
