Whether you’re selling inherited gold jewelry, outdated silver flatware, a coin collection, or scrap precious metals, getting fair market value requires understanding the process. As Port Charlotte’s established precious metals dealer since 1975, we’ve helped thousands of customers sell gold and silver. This guide explains everything you need to know.
Understanding What You Have
Before selling, identify what you’re dealing with. Gold and silver come in many forms, each with different values.
Gold Jewelry:
Gold jewelry is marked with its karat weight, indicating purity:
- 24K = 99.9% pure gold (relatively rare in jewelry, mostly in coins and bars)
- 22K = 91.7% pure gold (common in European and Middle Eastern jewelry)
- 18K = 75% pure gold (high-quality jewelry)
- 14K = 58.3% pure gold (most common in U.S. jewelry)
- 10K = 41.7% pure gold (minimum to be legally called gold in the U.S.)
Use a magnifying glass or jeweler’s loupe to find these marks. Common locations:
- Inside rings
- On clasps of necklaces and bracelets
- On the backs of earrings or posts
- On pin stems of brooches
Some older pieces may not be marked but are still gold. Unmarked items require testing to determine purity.
Silver Items:
Sterling silver is marked:
- Sterling or .925 = 92.5% pure silver (standard sterling)
- Coin silver or .900 = 90% silver (older U.S. standard)
- 800 = 80% silver (common in European pieces)
Silver-plated items (marked EP, EPNS, or just “silver” without a number) have only a thin silver coating over base metal. These have minimal value.
Gold and Silver Coins:
Coins fall into two categories:
- Bullion coins: Valued for metal content (American Gold Eagles, Canadian Maple Leafs, etc.)
- Numismatic coins: Valued for rarity and condition beyond metal content
Pre-1965 U.S. dimes, quarters, and half dollars contain 90% silver. These are worth far more than face value.
Understanding Current Market Prices
Gold and silver are commodities traded globally 24 hours a day. Prices fluctuate constantly based on:
- Economic conditions
- Inflation expectations
- Currency values (especially the U.S. dollar)
- Geopolitical events
- Industrial demand (for silver)
- Investment demand
The “spot price” is the current trading price for immediate delivery of one troy ounce of pure metal. You can check spot prices on financial websites like Kitco.com or Bloomberg.
Important: A troy ounce weighs 31.1 grams, slightly more than a standard ounce (28.35 grams). Gold and silver are always traded in troy ounces.
How Dealers Calculate Offers
Legitimate dealers base offers on current spot prices. Here’s how it works:
For Gold:
- Weigh the item (in grams or pennyweight)
- Determine purity (10K, 14K, 18K, etc.)
- Calculate pure gold content
- Multiply by current gold spot price
- Offer 70-85% of that value (the percentage varies by dealer)
Example: You have a 14K gold ring weighing 5 grams. Gold spot price is $2,000/oz.
- 5 grams = 0.161 troy ounces
- 14K = 58.3% pure
- Pure gold content: 0.161 × 0.583 = 0.094 troy ounces
- Melt value: 0.094 × $2,000 = $188
- Typical offer: $141-160 (75-85% of melt value)
The percentage you receive depends on:
- Current market conditions
- Whether you’re selling to a refiner or retailer
- The dealer’s overhead and profit margin
- The amount of gold you’re selling (larger quantities often get higher percentages)
For Silver: The same basic process applies, but silver percentages are often higher (85-95% of melt value) because silver has lower margins.
Red Flags: Identifying Unfair Dealers
Unfortunately, not all buyers are honest. Watch for these warning signs:
Red Flag 1: Testing or Evaluation Fees Legitimate dealers don’t charge to test and evaluate precious metals. Testing is part of the buying process. If someone wants $25-50 just to look at your items, walk away.
Red Flag 2: Bait and Switch on Purity Some dishonest buyers claim your 14K gold is actually 10K, or that your sterling silver is plated. They test quickly without showing you results, then offer low prices based on the “corrected” purity.
Protection: Insist on watching all testing. Reputable dealers use electronic testers or acid tests performed in front of you. They’ll explain results clearly.
Red Flag 3: Not Weighing in Front of You Some buyers weigh items in a back room, then return with an offer. This allows them to understate weight.
Protection: All weighing should happen while you watch. The scale should be visible and properly calibrated. Ask to see the weight readout.
Red Flag 4: High-Pressure Tactics “This price is only good for the next 30 minutes.” “Gold is dropping fast, you need to sell now.” “I can only offer this if you decide immediately.”
These tactics create artificial urgency. Legitimate dealers understand precious metals selling is a significant decision. They won’t pressure you.
Protection: If you feel pressured, leave. Get multiple quotes. Take time to make informed decisions.
Red Flag 5: “No Refunds” or “All Sales Final” When Buying Gold This red flag applies when you’re buying gold, but it reveals business practices. Reputable dealers stand behind what they sell. Buyers who won’t accept returns are often running scams.
Red Flag 6: Offering Far Below Market If the spot price for gold is $2,000/oz and you’re offered $800/oz for pure gold, something is very wrong. Offers should be 70-85% of melt value, not 40%.
Protection: Know approximate melt value before visiting dealers. If an offer seems too low, get second opinions.
The Selling Process at Reputable Dealers
Here’s what to expect when selling to honest dealers:
Step 1: Initial Examination The dealer examines your items, looking for marks indicating purity. They separate items by karat weight (for gold) or silver content.
Step 2: Testing For unmarked items or verification, dealers use:
- Electronic testers: Send a small electrical current through metal to determine purity
- Acid testing: Apply acids that react differently with different karat golds
- X-ray fluorescence (XRF): Advanced equipment that determines exact metal composition
You should be able to watch all testing.
Step 3: Weighing Items are weighed on a certified scale in front of you. The dealer should show you the weight.
Step 4: Calculation The dealer calculates melt value based on:
- Weight
- Purity
- Current spot price
They explain their offer as a percentage of melt value.
Step 5: Your Decision You decide whether to accept. There should be zero pressure. If you decline, the dealer returns your items immediately.
Step 6: Payment If you accept, you receive payment on the spot. Most dealers pay cash for smaller transactions ($500-1000) and checks for larger amounts. You should receive a detailed receipt listing what you sold, the weight, purity, and price paid.
What About Scrap Gold and Silver?
Broken jewelry, single earrings, bent silverware, and tarnished items still have value based on metal content. “Scrap” simply means the items will be melted for their metal rather than resold as jewelry or collectibles.
Scrap Gold: All gold has value, regardless of condition:
- Broken chains
- Single earrings
- Bent rings
- Old dental gold
- Watches (gold cases only, mechanisms have no gold)
- Class rings
Stones in gold jewelry typically have minimal value unless they’re natural diamonds or precious gems. Most dealers focus on the gold content and don’t pay extra for small stones.
Scrap Silver:
Sterling silver flatware, trays, candlesticks, and jewelry all have melt value:
- Tarnish doesn’t matter (it’s just surface oxidation)
- Dents and damage don’t reduce metal content
- Monograms don’t affect value
- Patterns don’t matter for scrap pricing
At Herb’s Coin Shop, we pay full silver value minus 10% for refining costs on sterling silver. We send sterling to refiners who extract pure silver, and the 10% covers shipping and processing. Many dealers take 20-30%, so our pricing is very competitive.
Silver-plated items (marked EPNS, EP, or just “silver” without .925) have minimal value because they’re base metal with a thin silver coating.
Timing Your Sale: Does It Matter?
Precious metals prices fluctuate daily. Should you wait for higher prices or sell now?
Consider selling now if:
- You need cash
- You’re handling an estate with deadlines
- Prices are at or near historical highs
- You’ve been waiting for months and prices aren’t improving
Consider waiting if:
- Prices are clearly depressed (compare to 5-year averages)
- You don’t need immediate cash
- You believe economic conditions will drive prices higher
- You’re comfortable holding the items securely
Realistic perspective: Timing the market perfectly is impossible. If current prices give you fair value for your needs, selling makes sense. Waiting months hoping for 5-10% higher prices might not be worth the stress.
At Herb’s Coin Shop, we base offers on current spot prices regardless of whether we think prices will rise or fall. We don’t penalize you for market timing.
Special Considerations for Different Items
Gold Coins: Bullion coins (American Gold Eagles, Krugerrands, Maple Leafs) should be valued based on gold content plus a small premium for the coin format. Rare collectible gold coins may be worth far more than melt value. Get numismatic evaluation in addition to gold value assessment.
Silver Coins: Pre-1965 U.S. silver coins are often bought based on “times face value.” For example, if silver is strong, dealers might pay “20 times face” meaning a quarter is worth $5. This simplifies calculations for large quantities.
High-Karat Gold Chains: 18K and 22K gold chains may have value beyond melt if they’re in good condition. Ask if the dealer also buys jewelry for resale, not just scrap.
Designer Jewelry: Signed pieces from Tiffany, Cartier, Van Cleef & Arpels, and other luxury brands may be worth far more intact than melted. Mention designer marks before dealers test items.
Damaged Silver Holloware: Dented trays, bent candlesticks, and damaged serving pieces are typically scrap. But if items are antique or from prestigious makers (Tiffany, Georg Jensen, Paul Revere), they might have collectible value even damaged.
Getting Multiple Quotes
Always get at least two or three quotes before selling significant amounts of gold or silver. Offers should be relatively close. If one dealer offers $2,000 and another offers $800 for the same items, something is wrong.
When comparing quotes:
- Make sure each dealer saw and weighed the same items
- Verify they’re using similar spot prices (prices do change throughout the day)
- Ask each dealer what percentage of melt value they’re offering
- Consider reputation and customer reviews, not just the highest offer
Questions to Ask Before Selling
“What is the current spot price for gold/silver?” The dealer should be able to tell you immediately and show you on a computer or phone app.
“What percentage of melt value are you offering?” Honest dealers clearly state their percentage (typically 75-85% for gold, 90-95% for silver).
“Can I watch you test and weigh everything?” The answer should always be yes.
“Can I have a receipt detailing what I sold?” Yes. The receipt should list items, weights, purity, and prices.
“If I change my mind in the next hour, can I buy my items back?” Most reputable dealers will say yes for a brief period, though they’re not required to.
Our Process at Herb’s Coin Shop
We’ve been buying gold and silver in Port Charlotte since 1975. Our process is completely transparent:
- We examine your items and explain what we’re looking at
- We test everything in front of you and show you the results
- We weigh items on a scale you can see
- We show you current spot prices on our computer
- We calculate melt values and explain our offer percentage
- We give you time to decide with zero pressure
- If you accept, we pay immediately and provide detailed receipts
We understand selling precious metals often involves sentimental items or comes during difficult life transitions. We treat every customer with respect and dignity.
Visit Us for a Free Evaluation
Bring your gold and silver to Herb’s Coin Shop at 2348 Harbor Blvd in Port Charlotte. We’ll evaluate everything, explain exactly what you have, and make fair offers based on current market prices.
No appointment necessary for most items. For very large collections or estate sales, call ahead at (941) 629-5777 so we can set aside adequate time.
We’re here Monday through Saturday. Stop by and experience the honest, straightforward service that’s built our reputation over nearly 50 years in Southwest Florida.