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Things to keep in mind when you sell your physical gold
In an interview with Lotta Reberg from Aftonbladet, Eric Strand discusses whether you should consider selling your physical gold and, if you decide to do so, the key factors to keep in mind.
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Aftonbladet Super Weekend Retro - Watch Out So You Don’t Get Fooled by Gold!
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Gold prices continue to soar to record levels, and silver is also rising. Many are seizing the opportunity to sell jewelry and silverware. But beware – there are pitfalls, and you could lose thousands of kronor.
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Here’s your guide if you’re considering selling.
Text: Lotta Reberg. Photos: Auctionet, Bukowskis, Pantbanken Sverige, Sikö Auktioner, Södersens Auktionshus.
Many talk about the stock market, but since the turn of the millennium, gold has increased more in value than the stock market. In recent years, it has risen faster, partly due to global uncertainty. Wars and budget deficits in the USA have driven up the price of the precious metal. Now, gold is at a record price of 923 SEK per gram for 24 karat. As a result, more and more people are taking the opportunity to sell their jewelry.
However, caution is advised. Most gold buyers are reputable, but one company to be wary of is Guldbrev. They spend a lot on marketing and have low ratings on Trustpilot, so it’s easy to get misled. There’s a price difference of several thousand kronor between what you get from reputable companies and from Guldbrev, explains Peter Sundström, CEO of Pantbanken Sverige, Finguld.se, and chairman of the Swedish Pawnshop Association.
Concerning
Guldbrev has been reported to the Consumer Ombudsman (KO) multiple times. Eventually, the Consumer Ombudsman filed a lawsuit against the company, and in March 2022, a verdict was issued by the Patent and Market Court against the company. Guldbrev was convicted of bait pricing and threatened with a fine of eight million SEK if they didn’t remove certain claims in their advertising. The KO is currently awaiting a directive from the EU Court regarding Guldbrev’s advertising. Aftonbladet reached out to Guldbrev for comments, but they declined a phone interview like other companies in the industry and requested written questions in advance, responding only by email.
How do you respond to the fact that KO still receives complaints about you? Around 17 in the past year?
“With so many customers, it unfortunately happens that some become dissatisfied. In addition to our internal improvement work, we occasionally check our customer satisfaction compared to other consumer sectors and see that we perform relatively well,” responds Robert Nyberg, CEO of Guldbrev, in an email to Aftonbladet.
Things to Consider:
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Research multiple companies before deciding to sell. It’s crucial to read the fine print.
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Ask how often the company updates its gold and silver prices. Is it annually, a few times a year, or daily?
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Weigh your gold and silver yourself before handing it over or sending it in. Image - Gold bracelet being weighed on a scale Here, a bracelet is weighed. Finguld.se, which buys gold, currently has a gold price of 591 SEK per gram. The bracelet weighs 27.3 grams, resulting in a price of 16,134 SEK.
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Be aware of the price for different karat levels. The most common is 18 karat, but your jewelry may have a higher or lower karat. Higher karat means greater value.
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Does the valuation include the price, or is there an extra fee?
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If your jewelry has stones, check them before selling to a gold-buying company. They don’t pay for stones, so it’s better to remove them before selling.
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Read the company's insurance terms. What happens if the jewelry gets lost in the mail or while at the company?
Read the Terms Carefully
If you want to convert your gold or silver into cash, there are three main options:
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Sell directly to companies that buy gold and silver and pay per gram.
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Borrow against the gold or silver at pawnshops.
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Sell through an auction house.
You get the highest price by selling directly, but it’s essential to choose the right company. Read the terms carefully and avoid being enticed by bait pricing.
At pawnshops, the price for gold and silver is not as high. However, if you change your mind, you have the option to buy back what you pawned since you’ve "only" loaned it for a sum. If you don’t retrieve it within a certain time, it’s auctioned, usually after six months. Should the price increase during this period, any surplus goes to you.
Going to an auction house is a good option if you have older, unique jewelry or designer pieces. In this case, the market determines the value. You can also set a reserve price, meaning you don’t want to sell below a certain amount.
Good luck with whatever you decide!
Image - A scratch test ensures the gold’s karat purity as stamped.
Image - Stones in a piece of jewelry being checked with a special loupe.
Image - QUALITY CHECK Here, gold stamps are inspected with a loupe to determine the karat level. By law, all gold must be stamped with a responsibility mark and karat level.
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Experts on Gold Prices: Is Now the Time to Sell Your Gold Jewelry?
Andreas Siesing, Curator at Auctionet.
”The value is very high right now. Many people are selling their jewelry. I think one should think carefully before deciding. You need to weigh the benefit of the money against the sentimental value. Gold chains are largely bought up by gold dealers who melt them down, where you’ll go by the gold price. For really old jewelry and what’s known as designer pieces, it's better to sell at auction, as they’re worth more than today's gold price. We've also noticed that more people are taking the opportunity to sell silver cutlery as silver has also increased in value. I understand that it might not be very appealing to eat with large, heavy silver cutlery from the 1800s today or to keep polishing it. But in 100 years, people might regret the lost cultural value when fine silver cutlery has been melted down."
Torbjörn Iwarson, Commodity Expert and Partner at Centaur Fund Management.
"Personally, I don't think one should sell jewelry unless you have a lot and would enjoy the money more right now. Often, there are precious or semi-precious stones in the jewelry, and in my experience, you rarely get paid for those. Jewelry often has a family history; they are more than just money. I think there should be other sources of liquidity than selling old jewelry, selling your memories. Besides, it’s hardly a general crisis right now. Gold is for times of crisis."
Peter Sundström, CEO of the Pawnshop organization Svenska Pantbanksföreningen.
"I think it’s okay to sell if you need the money or have decided to do something instead of letting the jewelry sit around. The gold price is at an all-time high, over 920 SEK per gram for 24 karats. In 2012, it was 400 SEK. But you have to be vigilant, check different options to avoid getting scammed. If uncertain, you can leave it at the pawnshop; then you have the chance to redeem it within six months. If you don’t, it will be sold. If it has been there for a while, the gold price may have gone up by the time it’s sold, and the surplus goes to the person who pawned the gold. But you can also sell it directly; we pay 591 SEK per gram for 18 karat in direct sales. Designer jewelry, like Lapponia, should be sold at auction. Some people also come to us to get their gold appraised, but it’s not certain that they will sell."
Eric Strand, Fund Manager and Founder of AuAg Funds.
"I say no, unless you really need more cash. Our forecast says that the gold price will continue to rise. It could reach 1,000 SEK per gram within a year. It’s already over 900 SEK today. This is because we live in an uncertain world, and the U.S. budget deficit is growing. And given that it's a turbulent world, one should remember that gold is always gold. Having gold is a good insurance in bad times. So why sell if you don’t need to? If you have jewelry you've grown tired of and don’t like, you could melt it down and make a ring or bracelet you do like. Once you’ve decided to part with your gold, don’t sell designer and older jewelry for the gold price, as they may be worth much more, and you could get a better price at auction."
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