Should you sell your gold?

Every day we are bombarded with adverts from companies wanting to buy our old gold jewellery. The price of gold is rising throughout the world and has hit $1,000 an ounce.
So should we sell now and how do we go about choosing the right company?
You can sell your gold at some High Street jewellers or use an online company where you send your items to them in the post. These companies will usually phone or e-mail you a quote which you can accept or reject but some will just send you a cheque which you need to return within a set period if you are not happy with the amount.
There are also gold parties and temporary units cropping up in shopping centres looking to buy your unwanted gold.
Some of the online and postal companies that have been around for years and also well known High Street jewellers are trustworthy in their dealings and you will get a fair price.
However some companies, such as the new ones advertising on TV, are only offering as little as20% of the value of the gold.
Gold dealing has become big business recently and many companies are forming just to make a quick profit and will close down just as quick when gold prices start to dip. These companies will care very little for fairness or customer service.
So before you sell your gold do a quick search on the company.
See how long they have been trading for and check online chatrooms and forums for any negative comments. If in doubt contact the Trading Standards to see if any complaints have been received. The current price offered can vary from £2 a gram to £7.30 a gram so it is worth shopping around. Remember the price of gold varies daily so your quotes will vary slightly from day to day.
There are alternatives to selling your gold. If you only need a short term loan you may be better going to a Pawnbroker. They will normally loan you half the value of your jewellery and charge in the region of 8% per month. This is not ideal for a long term loan.
Selling your old gold in the present climate can be a wise move, but be sure to do your homework on the company before you do.