
Gold Prices Hit Record Highs—Experts Advise Caution Before Selling Jewelry for Cash
With gold prices surging to historic highs, many Americans are cashing in on estate jewelry and heirlooms. But while the market presents an opportunity, financial experts urge sellers to proceed carefully.
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Spot gold prices recently exceeded $3,500 per ounce, up from around $2,200 a year ago — a 36% increase. The rally, driven by fears of a global recession following new tariffs announced by President Donald Trump, has pushed many individuals to consider selling gold for quick cash.
"We're seeing an increasing number of people — mostly regular individuals and families, not investors — selling or melting old jewelry while the market is strong," said Tim Schmidt, founder of Gold IRA Custodians. Kathy Kristof, personal finance expert and founder of SideHusl.com, added that gold is usually traded during periods of fear and people should "strike while the iron is hot."

Financial chart | Source: Pexels
Key Tips Before Selling Your Gold
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1. Know the Value Before You Sell: Kristof advises checking the spot price of gold online and doing simple calculations based on the item’s karat and weight because "fools get creamed." For example, 24-karat gold is pure, while 18-karat is 75% gold.
2. Timing the Market Is a Gamble: Some experts believe gold has reached a temporary peak, while others see potential for continued gains. "Assess if the risk of holding and hoping is wise or foolish," Kristof added.
3. Be Aware of Taxes: Gold is classified as a collectible by the IRS, meaning gains can be taxed at rates up to 28%, higher than the 20% cap for stocks and real estate, explained tax professor Troy Lewis.

Gold jewelry | Source: Pexels
4. Don’t Melt Down Valuable Heirlooms: While selling may be practical for urgent financial needs, Schmidt advises against melting historically or artistically valuable items because a unique piece's original value is lost forever when it is melted.
Experts recommend getting jewelry appraised and shopping around before finalizing a sale. "It’s a competitive marketplace," Kristof said. "You can get a better deal."
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