OLD GOLD TO NEW CASH: HOW TO CASH IN ON RECORD GOLD PRICES!

Remember that old class ring from way back in the day when wearing your high colors was the ultimate symbol of coolness? How about that mangled gold chain with the broken clasp that's been sitting in your night stand for the last 15 years?

Have you considered pawning them off at the local pawn shop, but the clientele seems a bit to sketchy for you to get within 100 feet of the place?

For the ultra shrewd capitalists among us, or those who just want to make a quick buck getting rid of useless gold jewelry, selling your old jewelry is a sure fire way to put quick cash in your pocket with minimal effort.

The price of gold is trading around it's all time highs right now! In layman's terms, 1 ounce of gold is anywhere from $900 to $1000 per ounce. So that means, you can likely cash in your gold for 2 to 5 times more than what you paid for it -- if you didn't over pay in the first place of course.

Allow me to walk you through the calculations.

The gold item.
Let us assume we have one 18k gold necklace weighing approximately 15 grams.

Some needed variables.
1 gram = 0.0353 oz
1 oz gold = $920 (as of 03/21/08)
24k gold = 100% pure gold

Algebra Time!

1) 18k gold / 24k gold = 75% gold

2) 75% gold x 15 grams = 11.25 grams gold

3) 11.25 grams x 0.0353 oz = 0.40 oz gold

4) 0.40 oz x $920 = $368

Congratulations! You now have $368 worth of gold in your hands.

Selling your gold.

Now, knowing a thing or two about how the world works, it's doubtful that you will get full price for your gold. Or as I like to say, "how badly do you feel like being screwed over on your deal?"

If you're a cheap date, 50% of the current market value ($368) is just fine for you. Just remember that regardless of whether you walk into the neighborhood pawn shop, or the posh jewelry store downtown, you're entering a sales negotiation and I'm quite certain the shop owner will be negotiating with you, regardless if you plan on negotiating with him.

Your best bet is to treat this like any other sales negotiation and haggle with the dealer. If you are uncomfortable with this doing this in person, begin searching the net for U.S. based gold dealers. Let's review a few must have selling points.

1) The dealer must be located within the USA (reduces scam potential).
2) Accredited by the Better Business Bureau.
3) Paying 90% to 100% market value for your gold.

You know what the current market price for your used gold items thanks to the easy equations above. So why shouldn't you receive top dollar for them?

I've located three websites for those who are interested in completing such a transaction.

1) Gold Buyers of America
2) US Gold Buyers
3) Coastal Gold

For those who would like more information on the gold markets, or the spike in commodity prices, check out this brief article from CNBC for a brief explanation.

If questions/comments arise, I would be glad to assist, or if anyone has gone a process such as this, please share your success (or failure).