Selling gold for max cash The top scrap gold buyers & how to max the price

The majority of this guide is about selling old gold for scrap. Most gold-buying firms buy up gold so they can melt it down. So this is for old and broken gold, not priceless top carat gear.

The gold-buying industry is unregulated, and some big-name players seem rarely to live up to their promises.

The OFT has taken action against a number of companies that offer cash for gold. Two firms voluntarily shut down, while three others pledged to radically alter their business model. See the OFT takes action against gold-buying firms MSE News story.

To test how much cash you can truly get for your gold, we sent gold off to 10 websites. See our gold investigation below.

Have a rummage through the house for abandoned bling. Empty old jewellery boxes, hunt under the sofa and rifle through drawers.

Dig out old broken chains, scratched rings, snapped brooches or dodgy bling from dodgy exes. Old gold tooth crowns go for �20-�60 depending on your gnasher's size and its carat.

This is brilliant for odd earrings or cufflinks. For example, earring butterfly backs are commonly worth �1.20. Though for smaller amounts, sell to a jewellers, so postage doesn't dwarf the gain.

The stone may be worth more than the gold � but usually it's only the gold they�ll pay for, and they rarely return stones.

So if a ring has a rock, never, ever just send it off to a postal gold site, unless you're sure it's tiny chips of faux diamond. Ask a jeweller instead.

Don�t allow unscrupulous companies to talk a load of bull-ion. First, find out the carat, which indicates purity, then weight. The easiest way is to ask a local jeweller or pawnbroker to do it for you (and ask for a price while there). Go to a few to corroborate the info. Alternatively, try assessing the hallmark yourself.

Read a step-by-step DIY gold valuation guide

To value gold, you need to know two things: the carat and the weight. For a thorough evaluation, you need to be in the business, but it's possible to have a crack at it.

Step 1. Weigh it

To weigh your gold, you need to be in possession of some minutely-accurate electronic weighing scales, as used by jewellers. Kitchen scales are an option if they measure by the 1/100th of a gram, but these are generally less accurate.

A great tip if you don't have scales is to use the franking scales at work. Professional pocket scales can cost sub-�10, so if you've a vast pile of bling and understand hallmarks, this is another option.

Step 2. Find out the carat

The first thing to note's that very little jewellery is pure, 24-carat gold. Pure gold's too soft for everyday use, so it's alloyed with other metals. The majority of British jewellery's nine-carat, which is only 37.5% pure gold.

Check your hallmarks

In Britain there are standard marks indicating that a piece is made from gold, proving its purity. The system's complicated, and even the most learned gold experts carry a hallmark identification book.

But here's how to roughly estimate the price. For very detailed hallmarking how-to, including other metals, read the Assay Office's hallmarking guide. If you're serious about getting to grips with gold, a copy of Jackson's Silver and Gold Marks of England, Scotland and Ireland will identify other marks.

The maker/sponsor's mark

Gold items will have additional initials before the hallmark, representing the maker. Depending on the maker's importance, these marks can often add value.

The carat/fineness mark

This mark shows the gold's purity. As an example, a 9-carat piece contains 37.5% gold, so it's usual to find the numerals 375 stamped on the item; 18-carat gold is 75% gold, hence the 750 mark.

The metal

This optional mark shows the metal. The crown pictured means gold.

The Assay Office

British gold should carry the stamp of the assay office that hallmarked it. There are four marks; one for each of the offices (pictured right).

Of course, there's no need for international gold to carry these marks.

The date mark

While this is optional, it's still included on many hallmarks. Since it bears no obvious relationship to the date signified (the K pictured means 2009) and varies by assay office, you'd be best off confirming with a jeweller.

So, put them all together, and the standard mark for 18ct gold hallmarked in London is:

What if it doesn't have a hallmark?

One of the biggest issues is that hallmarks differ the world over. If your jewellery's from overseas, chances are it will have a different hallmark, so it's difficult to verify the gold content at home.

Plus under UK law, gold weighing less than one gram, such as earring butterflies, doesn't need to have a stamp.

Just because it has no hallmark, it doesn't mean it's not valuable. In this case, get a valuation from a jeweller, who will have special equipment to check gold content.

Post it to a gold site with no idea of its value and the company could say what it likes about the gold - it may tell you it is a lower carat than it really is.

The value�s often in the craftmanship. An �18,000 Cartier bracelet is certain to fetch more whole than melted.

If you've some Wag-style jewels, take them to a jeweller for a valuation or search on eBay to see how much they go for (see the eBay Selling Tricks guide for more.)

If you have gold coins or medals stashed away, such as a Krugerrand, these are likely to be worth way more than their scrap value.

The best place to flog 'em to is a bullion dealer. Find one through the London Bullion Market Association or British Numismatic Trade Association (BNTA). Then call them up, check if they buy from private investors and ask for a quote.

As always, it pays to try several dealers, as offers will vary. One of the top paying postal gold sites, Hatton Garden Metals, also buys gold bars and coins whole, so get a quote from it too.

As an aside, under the 1971 Coinage Act it's illegal to melt down sovereign and Britannia coins, as these are legal tender in the UK. Not that you'd want to, as they're worth more intact.

If posting to a gold site, always send via Special Delivery. which automatically covers you for up to �500 (or more for an additional fee). Take photos and keep records of carat and weight before sending, in case of loss or problems.

Much vintage costume jewellery is usually silver-cast or lesser metals. You�re likely to grab more selling secondhand via eBay or elsewhere.

Again, go to a jeweller to get a valuation. Certain costume jewellery brands fetch tidy sums on eBay. Brands to look out for include Vivienne Westwood, Butler & Wilson and Les Nereides (read the eBay Selling Tricks guide for more).

Some companies organise "gold parties", which often mean making financial decisions while plied with drink � never the best plan. Plus finding out what�s paid per gram isn�t easy - not a good sign.

Horror stories in this unregulated industry include people receiving cheques for far less than originally quoted (ask and they�ll often give more) and then being refused their gold back.

So if you're sending to a site that's not listed in our picks, don't assume you'll get anything like the amount promised.

eBay isn't just for posh jewellery. There's a brisk trade in scrap gold on there too, as many postal gold traders buy up gold from eBay. Just search for "scrap gold" to see examples.

The closing prices aren't bad and are similar to the best postal gold sites or jewellers. Yet the big downside is you have to pay a listing fee of about 10% on your item as a closing fee as well as Paypal fees on top.

If you have a low feedback score, you might not get its full value, as people will be suspicious. Buy a few small items you need anyway first to build your score.

But if you do want to sell it that way, here are some top tips. You'll need a decent feedback score. For a full guide to making �100s on eBay, read eBay Selling Secrets.

• Check for completed items

  To quickly estimate what you'll get for your scrap, simply go to eBay and do a 'completed items' search.

  Just type in what you've got, eg, '11.9 grams 9 carat'. Then click 'completed items' on the left-hand bar. It'll come up with a list of prices similar auctions have already fetched. Now compare with the price you can get at top gold site Hatton Garden Metals*.

• List the weight

  Most eBay sellers photograph their loot on electronic scales, so buyers can be sure of its weight.

• Ensure it's got a hallmark

  To sell on eBay, you must have a very clear idea of the jewellery's weight and carat. It's illegal to advertise it using the word 'gold' unless it has a hallmark. If it doesn't, you will have to list it as 'gold-coloured metal'.

Flog the family silver and you'll get a fraction of gold's price. Top gold site pick Hatton Garden Metals does take silver, but your Special Delivery postage costs can wipe out the gain. If you're already paying postage to send gold to a buyer, adding a few silver bits can be worth it.

Some traders do make cash by doing the car boot sale rounds, buying piles of silver plates and cutlery and flogging them on. Certainly, if you have some silver, then take it to jewellers and haggle for the best price.

Don't target jewellers in isolation. As a rule of thumb, always try at least three and play them off against each other. This gives you a solid foundation and prods sellers' competitive instincts in your favour to give you a better price. If you have a huge stash, try more shops to max the cash.

Londoners and Brummies can take advantage of precious metal dealers on their doorsteps. The UK has two world-famous jewellery districts: Hatton Garden in London and Birmingham's Jewellery Quarter.

These are full of hyper-competitive specialist merchants, which deal in bulk and pay more cash than normal high street shops. So if you've got more gold than The A-Team's Mr T, consider making a special trip.

This is a decent option even if you're offered a few quid less than the top postal gold sites, as you'll avoid postage charges (usually about a fiver) and as well as the small risk that the gold's lost in the post.

Chutzpah's a powerful weapon when hawking your gold. Aim for polite, firm, non-combative and maybe just a touch flirtatious. If you're charming and treat the whole process with humour, you'll get further. For more tips, see the High Street Haggling guide.

Printouts of quotes from the top gold sites can be a useful haggling tool. Some jewellers will price-match postal gold prices if you push them. If they do come within a few bob, take it, as you'll save on the hassle and risk of posting.

As one MoneySaver says, "I felt like the jeweller was appraising me, and not the jewellery." The more knowledgeable you seem, the more likely they are to give a fair price.

So once you know the carat and weight, march in and confidently say �What are you paying for 15 grams of nine-carat?� As opposed to �Um, erm - I don't know much about gold�� where they'll think you're easy pickings.

Note down prices, making it clear you're going door-to-door, not taking the first offer.

Ask the jeweller to weigh your gold, verify the carat and test everything that isn't hallmarked. Plus if there are any clear stones, ask them for their clarity. If you want to sell it to a postal gold company later, note all these down so you'll know how much you can expect.

A top tip: many jewellers let you trade in old scrap for brand new bling. Several MoneySavers have been offered excellent deals when part-exchanging gold against another purchase. For example, a broken necklace may be worth �100 as scrap, but they'll knock off �200 off a watch.

Look for membership bodies such as National Association of Goldsmiths and the British Jewellers Association.

If you get friendly with the jeweller, ask them who they sell their scrap gold to. There's likely to be one big trader in town, who, if it deals with the public, will pay you the most.

Better prices are often available for bulk-selling. If you're going to hand over a lot more gold, you're more likely to secure a deal - they're not going to haggle all day over an earring butterfly.