Here's what experts say about selling gold jewelry for cash

CNBC

30-04-2025

Gold prices have been on a tear, and with that comes an opportunity, at least for anyone with estate jewelry tucked away.
"We're seeing an increasing number of people — mostly regular individuals and families, not investors — selling or melting old jewelry to access quick cash while the market is strong," said Tim Schmidt, the founder of Gold IRA Custodians, an online resource for buying gold.
"For some, it's a way to cover urgent expenses; for others, it's an opportunity to capitalize on long-forgotten pieces that have suddenly become far more valuable than they were just months ago," Schmidt said.
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The recent surge in gold prices is pushing more people to consider unloading their family heirlooms and other valuables, which can be melted for cash, according to Schmidt.
Spot gold prices hit an all-time high above $3,500 per ounce last week. The record follows a barrage of tariffs announced by President Donald Trump in April, fueling concern that a global trade war will push the U.S. economy into recession. One year ago, prices were about $2,200 to $2,300 an ounce.
As of Wednesday morning, gold futures prices were up about 23% year-to-date and 36% higher compared to the price a year ago.
"Gold tends to trade on fear, and we have a lot of fear in the markets right now," said Kathy Kristof, a personal finance expert and founder of SideHusl.com.
"If you can find a moment when people are the most fearful, that's an ideal time to sell your gold," she said. "Strike while the iron is hot."
Many consumers who hold physical gold — such as higher-karat jewelry, bars and coins — view it as "financial insurance," said Jordan Roy-Byrne, founder of The Daily Gold, an online resource for gold, silver and mining stocks.
"Gold is reassuring," Schmidt explained. "It offers something tangible, dependable, and easily liquidated when times get tough."
One downside of selling physical gold is traditionally high trading costs — and those costs are typically not transparent, Kristof said.
Consumers should check the spot price of gold online before hawking their gold at a pawn shop or online marketplace like Alloy or Express Gold Cash, Kristof said.
Sellers can use the spot price to get a rough sense of what their gold is worth, if they know its weight and purity, to sense if they're being ripped off, Kristof said. (Keep in mind: 24-karat gold is pure gold; an 18-karat piece is 75% gold and 25% other metals.)
"Do the math before you even go," she said. "Fools get creamed."
Price comparisons and deal shopping are "always wise" moves for consumers, Kristof added.
"It is a competitive marketplace," she said. "You can get a better deal."
Some experts say prices may have topped out, but others think there is still room to run.
"My view is that gold hit an interim peak, which should hold up at least into the fall," Roy-Byrne said.
Ultimately, it's impossible to know what the future holds. Consumers should assess if they made a good return on investment, and if the risk of holding and hoping for a better profit "is wise or foolish," Kristof said.
One cautionary note: Sellers may pay a higher tax rate on their gold profits than they may otherwise think.
That's because the Internal Revenue Service would likely consider physical gold like jewelry, coins or bars to be a "collectible," for tax purposes, explained Troy Lewis, a certified public accountant and professor of accounting and tax at Brigham Young University.
Federal long-term capital gains taxes on collectibles can go as high as 28%, while those on other assets like stocks and real estate can reach 20%.
Schmidt recommends proceeding "thoughtfully" before selling or melting down gold jewelry.
"It can be a smart move for those needing immediate funds, but not every piece should be melted down," he said. "Items with historical or artistic value, like family heirlooms or antique jewelry, may be worth more in their original form than as melted metal."
Schmidt recommends consulting with a reputable jeweler or appraiser before selling as well as considering the cost of cashing out.
"Gold may be in high demand, but once a unique piece is melted, its original value is lost forever," he said.