Is now the time to cash in my gold jewellery, or will the cash value of my jewellery collection rise dramatically in the near future?

Analysts make a living trying to predict what will happen next, but what many people may not realize is that unless the future holds dramatic changes, the cash value of gold jewellery will not be effected in any amazing manor.

Recently the gold price has been trading in the $875-$935 per ounce range. While down from the mid-March ’08 highs of $1000 oz, the price remains at record levels. Many consumers are asking if they have missed the opportunity to sell their unwanted gold jewellery because the price of gold per ounce has come down a few percent. Good question. So, how does a $50 per oz gold price change affect the pennyweight value of your old gold?

First, let’s establish a few important facts allowing us to better understand the outcome of our analysis into the cash value of your gold jewellery.

14kt gold is the most popular gold jewelry type in the U.S.A. and therefore will be our benchmark. 25 pennyweights (dwt) of 14kt, is a typical quantity.. Our example compares $935oz versus $875oz. So, how about we get started comparing the difference in cash value when the price of gold per ounce changes?

The general public is increasingly aware of the daily price of gold and how it fluctuates, but perhaps unaware that the gold price refers to the value of a single ounce of 99.9% pure gold. Since 14kt is only 58.3% pure, the impact of rising and falling gold prices are less severe on the cash value of 14k gold jewelry. For every $50 oz change in the price of an ounce of gold, 14kt gold jewellery cash value changes by only $29 oz!

Now, back to our example; the lot of 14kt gold weighing 25dwt sold to at $935 oz (99.9% pure gold price) would be worth $475.00 as 14kt and the same 25dwt gold jewelry based on $875 oz would bring $454.00, a difference of only $21.

Each person should decide for themselves whether the cash difference of $21 is meaningful enough to warrant holding off from selling gold and hoping for a higher gold price to arise in the future.

Whether the current gold price is at $875, $900, or $1000 an ounce, these are historic times for the gold market and gold prices at these levels are a new occurrence. My  belief is there’s always a greater chance of a deep drop than a steep rise.

Remember the old adage; “a bird in the hand is worth two in the bush”.

The market for used gold will not last forever. As with other products, it is bound to fluctuate, if not for the better, then for the worse. That is why you need to make that decision to sell used gold right now.

The main reason why you should sell used gold now is that the market for used gold at the moment is very favorable. There has been a surging demand for used gold, not only because people have started to take a fancy in gold products again, but more so because vintage gold products, whether jewellery, coins and the like, are very much on top of the trend.

Such decision will not be easy; after all, there are a lot of considerations to bear in mind. One, you might be used to having your used gold with you that parting with them might give you a degree of heartache. Consider however, the benefits you will be getting. Not only will you have instant cash, you will also be able to de-clutter! Remember, a cluttered house breeds a cluttered mind!

Second, you might be hesitant to sell used gold because you actually do not know how much they are worth. This is where the value of research comes in. Have your used gold appraised. If your used gold is predominantly made up of broken or damaged jewelry, ask your jeweler repair shop how much it would take to have them repaired. If their current value is lower than what you would get if you sell used gold, then do not hesitate to say farewell to your used gold. The same goes with the repair cost: if the cost for the repair is higher, go ahead sell used gold. It is not worth hanging on to them if they will cause you unnecessary expenses, or if they have practically lost their value already.

Third, make a much-needed assessment of your financial situation. If you need more cash, then it would be an easy choice to sell used gold. Instead of relying on the power of your credit cards, choose to be liquid, and pay with cash. This would prove to be more beneficial to you in the long run because you will not be buried in mountains of debt.

Whatever your reasons are for deciding to sell used gold, stand by your decision. It will be quite useless after all to fret over a decision that has already been made.

Whether you choose gold over cash or cash over gold; it is definitely a decision worth mulling over.