COLORADO SPRINGS, COLO. -- The price of gold is at a record high. On Wednesday it was worth $890 an ounce.
The value of gold has skyrocketed over the last couple of months as the perceived value of the U.S. dollar is decreasing. More and more people struggling in this economy are deciding to see what they could get if they turned in their gold jewelry for cash.
FOX21 News reporter Danielle Leigh decided to find out how much a person would get for that used piece of jewelry.
The first stop was Luisa Graff Jewelers. They lent FOX21 News some gold jewelry items to use in the quest to see just how much money Leigh could get.
Luisa Graff chose three pieces, all a bit worn out: the first, a 12-carat gold bracelet; the second, a 22-carat gold chain; and a pendant, marked 14-carat gold, that is actually fake.
"Even though it is stamped 14-carat gold it doesn't mean it actually is," said Graff.
Some pieces a person has may therefore be worth less than an owner thinks they are.
Graff weighed and tested all the jewelry before Leigh left her store so she would know exactly what she was selling.
"If you have scrap, then it's a good time to sell, but I'm always very clear with people -- if it's something you love or if it's new, don't sell it for scrap because it's totally different," Graff said.
Next Leigh went to Colorado Precious Metals and Coins, a store specializing in the selling and purchasing of gold items.
"First thing we do is try to determine the carat or the quality of gold," said David Bayuk.
All added up, Bayuk offered Leigh $531.86 for the chain and bracelet. He didn't want the fake, gold-plated pendant.
"Over the counter it's as fair as anyone in the country, and we provide the accounting," Bayuk said.
That means Leigh knew exactly why she was getting paid what she was being offered.
Colorado Precious Metals and Coins was surprisingly up front, but would pawn shops treat Leigh with the same courtesy, she wondered.
First, Leigh went to Cash's Gems. This shop has lots of items and doesn't specialize in gold.
Georgianna Warszawski weighed the FOX21 News reporter's gold and determined its carat value, but didn't walk Leigh through her calculations before making an offer. She offered Leigh $400.
Cash's Gems offered Leigh more than $100 less than Colorado Precious Metals and Coins, but their offer was still in the range Graff advised the reporter would be fair.
Next, FOX21 News wanted to know what would happen if Leigh went into a pawn shop undercover. She tried to make a deal with EZ Pawn who promises to "pay top dollar for gold."
Employees there only offered Leigh $250. Not only did employees offer Leigh no accounting for the offer, EZ Pawn was willing to pay the least amount.
Finally, Leigh called representatives with www.cash4gold.com, a Web site that calls itself "America's Number One Gold Buyer" and promises satisfaction.
Leigh talked to two representatives, but neither could go into detail about their pricing. Both representatives also didn't know what percent of the current spot price of gold they would offer, but promised that information would be in a packet they were mailing to me so that I could mail them my gold.
When FOX21 news received the packet, it didn't give have an answer about gold pricing.
Here's what Leigh learned:
* If you are going to sell gold, now is a good time, but you have to make sure you are going to a reputable place, and are getting a fair offer based on the current price of gold.
* Also, if you are investing ,you should invest in solid gold, but wait until the price of gold goes back down so that when you sell you make more.
* As far as jewelry is concerned it's a lot like buying a new car. The value significantly depreciates after you drive it off the lot.
Click on the camera icon to view the story as it aired on FOX21 News.
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