In difficult times investors often turn to the security of gold. So it's not surprising that given one of the worst downturns since the 30s, the price of gold has gone through the roof.
Top cash for gold searches:
So what's the best way to convert your gold to cash?
We've all seen the adverts on TV and in the papers - selling gold is big business right now. More than 35 tonnes of bullion will be produced from scrap gold this year in the UK alone. With the price of gold up 50 per cent on last year many of us will have hunted round for that hidden bounty. But is this the best way to convert gold to cash? Industry figures warn that some companies are offering as little as a quarter of the market value. It's difficult to find companies that will publish their prices up front, so you can't be sure you're getting a good deal until it's too late.
It's advisable to take out some insurance before sending any gold – get some proof of posting too. Try your high street jewellers before parting with your gold, shop around. Many jewellers will offer a better price than the postal companies. Remember gold is a sound investment, getting rid of it now might not be the best idea.
Join the party
Another way to convert your jewellery into cash is to have a gold party. It's a craze that's swept America and is catching on here. Gold, it seems, is the new Tupperware. You may feel uncomfortable at the prospect of taking your gold earrings to a pawn or jewellery shop for valuation. Selling them at a house party is far less intimidating. But before you open the bubbly, how do you know you've got a fair price?
How much is it worth?
The company running the party will provide a valuer. They will weigh the gold and offer a price based on the market value that day. Any company buying a product will have its margins, so expect a cut in the value. Gold parties offer you around 70 per cent of the market value. Again, do some research before going along. Find out what the piece weighs and what its caratage is.