Dillon Gage Metals Says Do Your Homework Before Selling Your Gold - As Gold Prices Soar and Holiday Budgets Remain Tight, Dillon Gage Offers Seven Tips

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by: Dillion Gage Metals
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Date: Thu, 6 Jan 2011 Time: 11:23 AM
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Black Friday has come and gone, and the frenzy of holiday shopping is on! Given the challenging economy, holiday shoppers may be looking for ways to extend their gift-giving budgets; and, with the price of gold on the rise, consumers may opt to sell jewelry, coins, and other precious metal keepsakes this season to help stretch finite holiday budgets. Dallas-based Dillon Gage Metals suggests keeping an eye to a few details to avoid seller's remorse.

"While holiday shopping continues," said Terry Hanlon, President of Dillon Gage Metals, "many people may be thinking of selling jewelry and other precious items to help them afford the giving season. The good news is, they have a lot of options in terms of who they can work with to sell their gold and other precious metals. At Dillon Gage Metals, we think making an informed decision is the best way to be sure you receive the best value and the best customer experience from the process."

Dillon Gage Metals trades with numerous jewelry stores, pawn shops and other precious metal traders across the country. With more than 30 years of expertise in trading, the company offers the following seven tips to help potential sellers choose the dealer that works best for them.

1. Make an informed decision. Take the time to shop your items at a handful of stores before you sell them to help ensure you're getting the best value for your items. Your gold dealer should be willing to discuss the details with you, whether you are buying or selling gold. He or she should be willing to disclose the details of the offer for the item before you sell it.
2. Be sure you work with a trader that has deep knowledge of the precious metals. A good dealer will have a full scope of knowledge about bullion, rare coins, storage and refining so that he or she can offer you the most effective options to meet your needs.
3. Ask how long your dealer has been in business. With the gold market booming, there are many gold trading companies in the marketplace today, including jewelry stores, pawn shops, and other gold dealers. With so many choices, doing a little research into the dealer's qualifications can help you feel confident in your dealings with them. And, knowing that they have served many satisfied customers in the past should help provide you with peace of mind that you are working with someone you can trust.
4. Understand the current market value for your precious metals and how the dealer puts a value on your trade. Metal valuations are very different than insurance valuations, so you may be surprised to learn that your ring or necklace is worth considerably less than the appraised valued used for insurance purposes. The reason is simple: insurance appraisals provide a retail - or replacement - value of each piece. Your gold dealer is likely interested in the components of the piece of jewelry (e.g., precious metal content, loose stones), so he or she will place a value based on the sum of the wholesale price of each of its components. He or she will then offer to pay you a percent of that value, because the seller will need to make a profit when he or she resells it.
5. Don't settle for lengthy delays with delivery or payment. The dealer you work with should be able to pay you for the items you are selling at the time of trade.
6. Make sure you are impressed by more than marketing materials and advertising. The web site may be great, the ads may be exciting; but, with the rise of gold values in recent months, you should be sure to research the dealer you are working with before you hand over your gold.
7. Make your own decision. Your gold dealer should be open and honest with you. You should feel empowered to form your own decision about selling your gold versus being pressured to sell on the spot.
News reports suggest that the past year's worldwide recession may have fueled a rise in the price of precious metals, since, suddenly, investors who never gave much thought to trading or holding precious metals find them attractive. To meet the quick-paced demand for these metals, more companies and outlets than ever before are available to the public to help tap the large amount of precious metals they may be willing to sell. To help sellers narrow down these choices, Hanlon says that making an informed decision will help them add value to the experience and maximize the sale.

"With prices at or near record highs, many feel it is a good time to sell your precious metal items," said Hanlon. "We have been in this business for over thirty years, and we hope that sharing guidance on the process will help sellers, new and old, gain the value they deserve and expect from selling their gold and other precious items this holiday season and throughout the year."

About the Author

Dillon Gage (www.dillongage.com) was founded in 1976. Dillon Gage's companies include: Dillon Gage Securities, Inc., a full-service NASD member firm that specializes in financial planning Dillon Gage Metals, one of the largest precious metals dealers in the U.S. Dillon Gage Inc., a company dealing in the futures markets. For more information on Dillon Gage Metals and jewelry liquidation go to www.dillongage.com or call 800.375.4653. Follow Dillon Gage on Twitter @DillonGage and Facebook.