As stock markets plunge in the wake of the U.S. credit rating downgrade, gold prices continue to soar, now topping $1,700 an ounce.

This new high and increasing demand for the precious metal makes it very tempting for consumers to trade their unwanted jewelry for cash. Options to sell gold online, at in-home ‘gold parties’, or through local jewelers continue to gain in popularity, but the BBB of Southern Arizona would like consumers to think before they try to cash in on the gold rush.

“Selling old or unwanted gold is a growing trend for consumers during these uncertain economic times,” says Kim States, BBB President. “Whether you do it through a gold party, over the Internet, or through a local jeweler, consumers need to get informed before they sell their jewelry.”

BBB suggests consumers consider the following before selling your gold:

Find a trustworthy appraiser. For an appraisal, if possible, go to someone locally whom you know and trust. Check with the Better Business Bureau at www.tucson.bbb.org. The BBB suggests obtaining two or three appraisals to compare prices, prior to any sale.

The true price of gold may not be what you receive. If gold is worth $1,700 per ounce, you aren’t going to be paid $1,700 for every ounce of gold you have. Ask what you will be paid (if an online company, make sure you ask for specifics and give details on items you’ll be sending). Understand that the ounce quote is for pure gold only. For instance, 14-karat gold is composed of just 58.5 per cent gold. (more…)