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Maybe you\u2019ve inherited a tangle of gold chains<\/a> from a relative. Maybe you\u2019ve got a few coins<\/a> or bars <\/a>tucked away and you\u2019ve decided now\u2019s the moment to cash in. <\/p>\n\n\n\n And if you\u2019re in a rush? Fair enough. Turning gold into cash sounds like it should be quick and painless.<\/p>\n\n\n\n But hang on a second. Before you hand over your jewellery or bullion, let\u2019s make sure you don\u2019t fall into the classic traps. <\/p>\n\n\n\n This article won\u2019t save your life but it might save your life savings. Or at the very least, stop you getting scammed, short-changed or left kicking yourself afterwards. <\/p>\n\n\n\n <\/p>\n\n\n\n Imagine walking into a dealer, sliding your jewellery across the counter and taking the first offer they give you. Uh oh, big mistake.<\/p>\n\n\n\n The spot price of gold (the live market value per gram) changes constantly and sometimes dramatically. Gold has surged by about +19.7% over the last six months<\/a>, adding nearly \u00a314 per gram. Even in just the past month, prices jumped around +7.8%. That\u2019s roughly \u00a36.30 per gram.<\/p>\n\n\n\n To put that into perspective, a 20g coin or bar could be worth over \u00a3120 more today than it was just weeks ago. That\u2019s a lot of money to lose just because you didn\u2019t check the price.<\/p>\n\n\n\n Unfortunately some less-than-honest buyers will bank on you not knowing the spot price. They\u2019ll quote you a number which sounds \u2018about right\u2019 but is actually way below market value and only really benefitting them.<\/p>\n\n\n\n Jewellery sellers: <\/strong>Remember, the dealer is paying for the gold content only. A necklace marked 18ct is 75% gold, not 100%, so you need to know what today\u2019s rate per gram looks like at that purity.<\/p>\n\n\n\n Bullion sellers: <\/strong>You\u2019ll usually get closer to spot price, but don\u2019t assume it\u2019s that simple. Some coins and bars – like Sovereigns or Britannias – carry extra premiums so you could lose out if you don\u2019t know what yours are really worth.<\/p>\n\n\n\n A two-minute check of the live gold price in grams is the easiest homework you\u2019ll ever do.<\/p>\n\n\n\n <\/p>\n\n\n\n That 18ct ring you love? It\u2019s not 100% gold, it\u2019s 75%. A 9ct chain is only 37.5%. The rest is made up of other metals like copper or silver. Just because it looks like gold, doesn\u2019t mean to say it is pure gold. Dealers know better, and if you don\u2019t, you\u2019re already on the back foot.<\/p>\n\n\n\n Jewellery sellers: <\/strong>Always check the hallmark (those tiny stamps inside rings or clasps) so you know the purity before you go in. If it says 375, that\u2019s 9ct. 750 means 18ct. 916 means 22ct. 999? That\u2019s as close to pure gold as you\u2019ll get in jewellery.<\/p>\n\n\n\n Bullion sellers : <\/strong>You\u2019re usually dealing with 24ct (999.9 fine gold) but not every coin is pure. A South African Krugerrand<\/a>, for example, is only 22ct (91.6%), even though it still contains a full ounce of gold.<\/p>\n\n\n\n Make sure you know your carats and hallmarks before you sell, otherwise, you\u2019re setting yourself up to be short-changed.<\/p>\n\n\n\n <\/p>\n\n\n\n You\u2019d be amazed how often people forget that a dealer\u2019s quoted weight might not tell the full story.<\/p>\n\n\n\n Jewellery sellers:<\/strong> Stones, clasps and other bits do not count as gold. A ring could weigh 10g on your kitchen scale but only 6g might be pure gold. A reputable buyer will explain this. A dodgy one might just round down and hope you don\u2019t notice.<\/p>\n\n\n\n Bullion sellers:<\/strong> You expect precision, but not every dealer uses properly calibrated kit. In one Trading Standards sweep across Medway<\/a>, nearly half of the scrap gold traders investigated were found with inaccurate or unapproved scales. Test purchases showed wild variations; for the same 14g of scrap gold, the lowest offer was \u00a395 while the highest was \u00a3130. That is a \u00a335 difference on a small piece of jewellery. Scale that up to a heavy chain or a handful of coins and you are being short-changed big time. This is obviously a rare case and shouldn\u2019t worry you but it may be pertinent to get a second quote if something feels \u2018off\u2019.<\/p>\n\n\n\n <\/p>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n\n\n\n \u2705 What to look for<\/p>\n\n\n\n \u274c What to avoid<\/p>\n\n\n\n Some gold buyers are long-established businesses with clear processes and strong customer reviews. Others pop up online or on the high street with shiny promises but little substance.<\/p>\n\n\n\n Jewellery sellers:<\/strong> Pawnbrokers, jewellers and online gold buyers can all pay very different rates. Some will be fair and transparent, others will be vague and pushy. If a shop cannot provide proper paperwork or a clear breakdown of how they have valued your items, that\u2019s a red flag.<\/p>\n\n\n\n Bullion sellers: <\/strong>Reputation matters even more here. A trusted bullion dealer<\/a> will explain market premiums, check authenticity in front of you and give you a transparent offer. A less scrupulous one may undervalue coins like Sovereigns or Britannias by pretending they are worth only their melt value.<\/p>\n\n\n\n <\/p>\n\n\n\n If someone is waving an offer which seems way above the market price, alarm bells should be ringing. Gold is a global commodity with a live price that everyone can see. No legitimate buyer is paying way over the odds out of kindness.<\/p>\n\n\n\n Jewellery sellers: <\/strong>Online ads which shout \u2018highest prices paid\u2019 are often fishing expeditions. Some will quote you a sky-high figure to hook you in, then chip away at the valuation once they have your items. Others may take your jewellery and suddenly \u2018discover\u2019 hidden fees before returning a lower payout.<\/p>\n\n\n\n Bullion sellers: <\/strong>Scammers love to target people with above-market valuations. Classic set-ups include fake buyers on online marketplaces who disappear once your gold is sent, or advance-fee scams where they ask for payment to \u2018verify authenticity\u2019 before buying.<\/p>\n\n\n\n One of the saddest scams came from Scotland in 2023. An 86-year-old widow<\/a> was tricked by scammers posing as FCA officials. They persuaded her to convert her assets into gold – worth nearly \u00a32million – before arranging courier pickup. The gold vanished and only a small portion was ever recovered.<\/p>\n\n\n\n Always ask yourself, \u201cif this is such a great deal, why are they offering it to me\u201d? <\/p>\n\n\n\n If the offer feels too good to be true, it almost certainly is.<\/p>\n\n\n\n <\/p>\n\n\n\n The price a dealer offers is rarely the final figure you\u2019ll walk away with. Many add charges that nibble away at your payout until you are left with far less than you expected.<\/p>\n\n\n\n Jewellery sellers: <\/strong>Some buyers deduct \u2018refining charges\u2019 for melting jewellery down. Others add handling or testing fees. These can be legitimate, but shady operators will bury them in the small print or only mention them after you\u2019ve agreed to sell.<\/p>\n\n\n\n Bullion sellers: <\/strong>You\u2019ll usually be quoted \u2018spot minus X%\u2019. That X% is the dealer\u2019s margin or commission. Reputable bullion dealers are upfront about their cut but less scrupulous ones will keep it vague, or suddenly inflate the margin once you\u2019ve shipped your coins.<\/p>\n\n\n\n Always ask for a breakdown in writing before you agree to a sale. If the buyer cannot explain their charges clearly, walk away. <\/p>\n\n\n\n <\/p>\n\n\n\n Where you sell your gold can make just as much difference as when you sell it. The right place can mean a fair payout, the wrong place can leave you badly out of pocket.<\/p>\n\n\n\n Jewellery sellers: <\/strong>Pawnbrokers and high street jewellers are convenient but often pay much less than specialist gold buyers. Selling privately through online marketplaces might seem tempting but it carries a serious risk of fraud or theft.<\/p>\n\n\n\n Bullion sellers: <\/strong>With coins and bars, the difference is even bigger. Specialist bullion dealers will price based on live market rates and may pay premiums for sought-after coins. General jewellers or pawnbrokers may ignore premiums altogether and just offer melt value.<\/p>\n\n\n\n Online selling: <\/strong>This can be one of the best options, provided you pick the right partner. At Gold Bank, we have been in business for over 30 years and our customers have rated us highly on Trustpilot for transparency and service. We offer a fully insured collection<\/a> in London and clear, upfront valuations, so you know exactly what your gold is worth before selling. That level of trust is what sets proper online buyers apart from the fly-by-night operators that the likes of Trading Standards and Action Fraud warn about.<\/p>\n\n\n\n Gold only has value if it is genuine. Sounds obvious, but plenty of people come unstuck here.<\/p>\n\n\n\n Jewellery sellers:<\/strong> Hallmarks are your friend. In the UK, anything over 1g of gold<\/a> must carry a hallmark from an official Assay Office. If your jewellery does not have one, buyers will treat it with suspicion or only pay scrap value. <\/p>\n\n\n\n Bullion sellers:<\/strong> Certificates of authenticity and original packaging matter. Gold in a sealed assay card is straightforward to sell, but a loose bar with no paperwork will raise questions. Coins can also be assumed to be fake if they don\u2019t have any certification. If you cannot prove authenticity – even if you bought in good faith – a dealer may refuse it or pay only a fraction of the value.<\/p>\n\n\n\n <\/p>\n\n\n\n It is not the most exciting part of selling gold, but tax can come back to bite you if you ignore it.<\/p>\n\n\n\n Jewellery sellers: <\/strong>In most cases, selling a few old rings or a chain will not trigger tax. However, if you are clearing out a lot of items or selling high-value pieces, you may fall into Capital Gains Tax (CGT) territory. HMRC is not impressed by \u201cI didn\u2019t know\u201d as an excuse. So now you know.<\/p>\n\n\n\n Bullion sellers: <\/strong>Some gold coins such as UK Sovereigns and Britannias are exempt from CGT because they are legal UK currency. Sell the same weight in Krugerrands or bars and you could owe tax if your profits exceed the annual allowance.<\/p>\n\n\n\n HMRC requires you to declare taxable gains, even if the buyer does not report the sale. If you sold some bullion with a profit of \u00a32,500 (and had no other chargeable gains in the year), you’d not owe any CGT, because it falls under the \u00a33,000 allowance<\/a>.<\/p>\n\n\n\n But if your total gains across all assets exceed \u00a33,000, for instance, a \u00a33,500 gain – that extra \u00a3500 is taxable and you\u2019d need to declare and pay CGT on it<\/p>\n\n\n\n <\/p>\n\n\n\n So many people who have been burned will tell you the same thing: Do. Not. Rush. <\/p>\n\n\n\n Quick cash may feel good at the moment but hasty decisions nearly always cost you. It is a tale as old as time. <\/p>\n\n\n\n Jewellery sellers: <\/strong>If you look like you just want the money fast, dealers are going to smell your desperation a mile off and they will be less likely to budge on price. Taking even a day or two to compare offers is a sensible strategy. <\/p>\n\n\n\n Bullion sellers:<\/strong> The gold market moves constantly. So if you\u2019re in a rush to sell you may inadvertently sell in a dip, and that could mean missing out on hundreds if not thousands of pounds if you are selling bigger holdings.<\/p>\n\n\n\n As these ten traps show, it pays to slow down, do your homework and choose the right place to sell. The main takeaways are to:<\/p>\n\n\n\nTrap 1: Selling without knowing the current gold price<\/h4>\n\n\n\n
Trap 2: Confusing carat value or purity<\/h4>\n\n\n\n
Trap 3: Overlooking weight accuracy<\/h4>\n\n\n\n
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Gold selling checkpoint list: what to look for and what to avoid<\/h4>\n\n\n\n
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Trap 4: Ignoring dealer reputation<\/h4>\n\n\n\n
Trap 5: Falling for scams and \u201ctoo good to be true\u201d offers<\/h4>\n\n\n\n
Trap 6: Forgetting about fees and commissions<\/strong><\/h4>\n\n\n\n
Trap 7: Selling in the wrong place<\/h4>\n\n\n\n
Trap 8: Not verifying authenticity<\/h4>\n\n\n\n
Trap 9: Forgetting about taxes and reporting obligations<\/h4>\n\n\n\n
Trap 10: Rushing the sale<\/h4>\n\n\n\n