Everyday Cheapskate

I promise not to ask whether you remember when the price of gold was fixed at $35 an ounce or when U.S. currency was tied to the gold standard. (Hint: The Gold Standard Act was passed March 14, 1900, but later suspended.) Things have changed drastically over the years, with gold now hovering around $1,050 per ounce.

Let's turn to your jewelry box, shall we? Remember all that gold you bought in the 1980s, when QVC and the Home Shopping Network were coming into their own? And when you could buy gold chains by the inch at county fairs and community swap meets? All of those chains, bracelets and earrings may be broken now, but they're not junk after all. They're not worth much as jewelry in their sorry state, but the gold content can be turned back into cash.

Before you haul off and send your scrap gold to a TV pitchman who promises to send you a check or you agree to attend a "gold party" at which the host says you can get cash instantly for your old gold, let me tell you about a conversation I had with Kevin Stevenson, owner of Johnson Jewelers in Bellflower, Calif.

First, let's talk about value. Scrap jewelry is valued by the weight of its gold content. Pieces that are 10 karats are not as valuable as ones that are 18 karats. A reputable jeweler can test a piece to determine its gold content, weigh it and determine its value as scrap.

When talking "scrap," jewelers do not take into consideration beauty or functionality.

You never should mail scrap gold to a gold dealer, Stevenson says. That's a rip-off just waiting to happen. Gold parties, which are popular these days, are not much better. Instead, he suggests, take the time to have your scrap evaluated by more than one reputable jeweler. Take your scrap gold to three jewelers, asking each one to give you an offer. Once you have determined the highest bid, don't be afraid to haggle. These jewelers are not going to offer the going rate of gold; they'll offer a lower amount that will allow them to have the metal melted down so that it can be reworked into new pieces of jewelry. Remember, jewelers are looking to make the best deal, too.

You will not get anything close to $1,000 an ounce for the gold content in your scrap gold, but you'll get a lot more than you have right now while it languishes in the back of your jewelry box. Knowing how to get the best price for all your junk jewelry should make the prospect of cleaning out those drawers that much sweeter.

Mary Hunt is the founder of www.DebtProofLiving.com and author of 18 books, including her latest, "Can I Pay My Credit Card Bill With a Credit Card?" You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.

COPYRIGHT 2009 CREATORS.COM