Buy, sell gold jewellery for maximum profit: Expert tips, strategies

Dubai: When Sarah decided to sell her old gold bangles, she expected a decent return, considering gold prices were soaring. But when the jeweller offered her a fraction of what she anticipated, she realised there was more to buying and selling gold jewellery for profit than just timing the market.

Gold has always been considered a safe haven for investors, especially during economic downturns. When currencies fluctuate, gold prices often rise, making it a potentially lucrative asset. However, turning your gold jewellery into profit requires strategy and know-how.

How to buy gold jewellery at the right price

The secret to profiting from gold jewellery starts with buying at the right price. Gold prices can be volatile, swinging up or down in a matter of days or even hours. To capitalise on this, track gold price trends and aim to buy during dips. Websites and financial apps that provide real-time gold prices can help you spot the best buying opportunities.

When shopping for gold jewellery, always check the hallmark, a small stamp that verifies the purity of the gold. Gold purity is measured in karats, with 24-karat being pure gold. Lower karat jewellery (like 18-karat) contains a mix of other metals, which can affect resale value.

How to determine the value of your gold

If you’re ready to sell, understanding the value of your gold is crucial. Use this simple equation to estimate its worth:

1. Find the current market price: Gold prices are typically quoted per gram in the UAE. The latest price for 24-karat gold is Dh350 per gram. Check live rates here.

2. Account for purity: Divide the karat number by 24 and multiply by the price per gram. For 18-karat gold, this would be (18/24) × Dh350 ≈ Dh262.50 per gram.

3. Calculate the total value: Multiply the result by the weight of your jewellery in grams. If your 18-karat gold necklace weighs 5 grams, its estimated value would be approximately Dh1,312.50 (5 × Dh262.50).

Sell smart: Get the best price for your gold

When it’s time to sell, finding a reputable buyer is key. Look for licensed jewellers and gold dealers, and compare offers from multiple buyers. Don’t rush—take your time to evaluate each offer.

Before selling, have your jewellery appraised, especially if it’s an antique or intricate piece. This will help ensure you’re not underselling. Also, document and photograph your jewellery, and check the buyer’s reimbursement policy in case of loss.

Potential pitfalls: what to watch out for

While gold jewellery can be a good investment, it’s not always as profitable as gold coins or bars. Jewellery often includes making charges and wastage fees, which reduce your returns. Additionally, wear and tear can lower resale value.

To maximise profits, opt for pieces with timeless designs and high purity. Always ask if your jeweller offers a buy-back policy that doesn’t deduct making and wastage charges.

Bottom Line?

Whether you’re buying gold jewellery as an investment or selling it to make extra cash, understanding the market and doing thorough research can make all the difference. By timing your purchases, knowing your gold’s value, and choosing trustworthy buyers, you can turn your gold jewellery into a profitable asset. Just ask Sarah—after learning the ropes, she sold her gold at a 30% profit!

With these strategies in mind, you can turn your gold jewellery into a golden opportunity.