- All that glitters....
- Should you sell your gold
- Investors behaving badly
- Personal investor behaviour - Are you behaving yourself?

The phrase ‘getting rid of my unwanted gold’ sounds pretty comical yet it is the sales pitch being used on TV commercials to try and persuade us to cash in on our jewelry. The idea that we all have piles of unwanted gold cluttering up our homes is amusing. Having said that, given the high divorce rate in the UK, there may be a few gold wedding rings that are now surplus to requirements!

But going back to the adverts, why are so many companies wanting to buy gold for cash and what, if anything is in it for you?

Firstly the good news: in the event that you do have gold jewelry, watches or trinkets that you want to sell, the gold price in recent months has been at record highs.

This is largely due to weak currencies around the globe (so people invest in gold rather than the US dollar or Sterling) and also a growing demand for jewelry from the growing middle classes in China and India.

The not so good news is that the companies promising you fantastic returns are not necessarily offering you the best price. They are cashing in themselves on the high gold price which means you should keep tabs on what the gold price is doing and compare that with what they are offering you.

Also remember that the price will change day by day as the gold price itself fluctuates. Many City analysts are forecasting the price of gold to fall in the coming months as they see the current high price over $1,000 ($1063.9) an ounce as unsustainable. (See article All that glitters) If we take the view that we are at or close to the market peak for gold prices, then now is arguably a good time to sell. The question is who do you sell to and does it make a difference which gold trader you choose?

The answer is it makes a big difference and you need to check the ‘buy’rates on the various gold trading websites. If they don’t publish their rates then you will want to know why. To give you some idea of how the rates can vary (in this instance for 9 carat gold) If you sell online you will receive a free pre-paid envelope and send your gold back to them. The envelopes are pre-insured (typically to a value of £500) in case the package is lost or stolen. If the jewellery you are selling is worth more than ₤500 you can arrange additional insurance at the Post Office.

Once the gold companies receive your gold, they will either confirm online a valuation or send you a cheque for what they have already valued your items to be worth. If for whatever reason you are unhappy with the valuation there is normally a 10-day window to insist your gold items are returned.

There is nothing wrong with selling your gold online (assuming you have checked the company is respectable) it is more a question of whether you are getting a good deal and are there other/better options.

Another alternative it to sell on e-bay – you might receive a better offer but of course there is no guarantee. If you don’t like the idea of going online, you could take your gold to an established high street jewellers (for instance H Samual but also a whole host of independent jewellers). They will provide you with an on-the-spot valuation which you can compare with what you would receive online.

There is also the option to have your old jewellery refashioned into something else that is more fashionable and which you might wear. You will obviously have to pay for the jewellers time but at least you will not have to pay for the precious metal itself.

Finally if you need cash urgently but don’t want to part with a piece of jewelry that has sentimental value, then a pawnbroker could be a temporary solution. Once again check the credentials of the broker and read carefully the terms and conditions.