Selling Gold Jewellery in the UK: How to Get the Best Price

Selling gold jewellery can be a practical way to convert unworn pieces into cash, but achieving the best price requires understanding how the market works. Whether you are selling inherited jewellery, unwanted gifts, or pieces you simply no longer wear, this guide explains how to maximise value when selling gold in the UK.

Understanding What Your Gold Is Worth

The value of gold jewellery depends primarily on its gold content, determined by weight and purity. Purity is measured in karats, with 24 karat being pure gold. Common jewellery purities in the UK include 9 karat (37.5% gold), 14 karat (58.5% gold), and 18 karat (75% gold). Higher karat pieces contain more gold and are worth proportionally more per gram.

To estimate value, multiply the pure gold weight by the current gold price. For example, a 10-gram 18 karat bracelet contains 7.5 grams of pure gold. Check the current gold price per gram and multiply by 7.5 to find the intrinsic gold value. Actual offers will be below this figure to account for dealer margins and refining costs, but this calculation provides a benchmark for evaluating offers.

Where to Sell Gold Jewellery

Multiple channels exist for selling gold jewellery, each with advantages and drawbacks. High street buyers including pawnbrokers, jewellers, and dedicated gold buying shops offer immediate cash and face-to-face service. However, these outlets have significant overheads and may offer lower prices than alternatives. Compare several high street offers before committing.

Online gold buying services have become increasingly popular. Companies like PostGold, BullionByPost, and The Gold Bullion Company provide prepaid insured postage and typically offer better rates than high street shops. You send your gold for evaluation and receive an offer, which you can accept or have the items returned. Ensure you use established companies with strong reviews.

Specialist jewellery auction houses may achieve higher prices for distinctive or designer pieces. While plain gold chains and bangles typically sell for scrap value, unique or signed pieces can attract collectors willing to pay premiums. Auction house fees reduce net proceeds, but this route merits consideration for exceptional items.

Preparing Your Jewellery for Sale

Proper preparation can improve the prices you receive. Clean your jewellery to present it at its best, using warm soapy water for most pieces. Remove non-gold elements like watches movements, leather straps, or plastic components that buyers will not pay for. Gather any original packaging, certificates, or receipts that might support higher valuations.

Know what you have before seeking quotes. Use a jewellers loupe or magnifying glass to find hallmarks indicating gold content. UK hallmarks include numbers indicating karats or fineness, along with assay office symbols. If uncertain about purity, many buyers will test pieces, but knowing in advance helps you evaluate offers accurately.

Getting Multiple Quotes

Never accept the first offer you receive. Gold buying is competitive, and prices vary significantly between buyers. Obtain at least three to five quotes from different sources before deciding where to sell. This process takes time but often reveals significant price differences that justify the effort.

When comparing quotes, ensure you understand exactly what is being offered. Some buyers quote prices per gram of pure gold, while others quote per gram of total weight regardless of purity. Clarify terms to make meaningful comparisons. Be wary of quotes that seem unusually high, as these may reduce upon actual evaluation or involve hidden deductions.

Understanding the Scrap Gold Market

Most gold jewellery sells for scrap value, meaning buyers intend to melt it down for refining rather than reselling as jewellery. This reality affects pricing significantly. No matter how beautiful or well-crafted a piece might be, scrap buyers value only the gold content. This explains why offers often seem disappointingly low relative to original purchase prices.

Scrap gold prices are based on current spot prices minus dealer margins and refining costs. Typical offers range from 70% to 95% of the intrinsic gold value, depending on the buyer and market conditions. During periods of high gold prices, competition among buyers often improves offers. Understanding this market dynamic helps set realistic expectations.

Recognising Fair Offers

Evaluate offers against the intrinsic gold value you calculated earlier. An offer representing 85% or more of pure gold value is generally reasonable for standard jewellery. Offers below 70% suggest either a less competitive buyer or additional factors affecting the piece. If offers seem universally low, verify that your purity assumptions are correct.

Be cautious of buyers who pressure you for immediate decisions or refuse to explain their pricing methodology. Reputable buyers understand that sellers need time to compare options and will allow you to consider offers before committing. High-pressure tactics often accompany below-market offers.

Alternatives to Selling

Before selling, consider whether alternatives might better serve your needs. Jewellers can rework old pieces into new designs, allowing you to retain the gold while enjoying refreshed jewellery. Pawnbrokers offer loans secured against jewellery, providing cash while retaining ownership if you repay the loan.

Gifting unwanted jewellery to family members preserves sentimental value that would be lost through sale. If financial need is temporary, explore whether borrowing against jewellery makes more sense than permanent sale. These alternatives may not suit every situation, but they deserve consideration before committing to sell.

Tax Implications of Selling Gold

Gold jewellery sales may have Capital Gains Tax implications depending on the amounts involved. Personal possessions sold for less than six thousand pounds are generally exempt from CGT. For higher value sales, gains may be taxable if they exceed the annual CGT exemption. Inherited jewellery takes a market value base cost from the date of inheritance.

In practice, most gold jewellery sales do not result in taxable gains because pieces typically sell for less than original purchase prices due to depreciation and market markups. However, inherited pieces acquired when gold prices were lower may have gained value. Keep records of sale proceeds for tax purposes.

Conclusion

Selling gold jewellery successfully requires understanding purity and weight, obtaining multiple competitive quotes, and setting realistic expectations about scrap gold pricing. By preparing properly and taking time to compare offers, you can maximise the cash received for your gold. Remember that sentimental value is lost permanently when selling, so consider alternatives if the jewellery holds special meaning beyond its metal content.