Sell ​​your gold without being tricked

With the ounce of gold surpassing $2,000 for the first time, it suddenly becomes more tempting to pull out your old jewelry. Where can you sell them? What do you know about the mysterious world of gold? Follow the leader.

Gold and its mysteries

It has never been so tempting to sell your gold. For the first time, an ounce of gold crossed the C$2,000 mark last August and has remained in this zone ever since. Is it the right time to sell? First, some explanations about the mysterious world of gold.

The price of gold has practically not stopped climbing for a year. This price is officially established in London, twice a day, by the London Bullion Market Association (LBMA), through a complex process taking into account the main international markets and based on supply and demand. It should be noted that it was in September 2011 that gold reached its all-time high of US$1,771.85 per ounce. But that month, the US dollar was exceptionally weak, worth $0.95 Canadian. In August 2019, the price of gold was much lower in global markets, around US$1500. But the US dollar was worth C$1.33.

31.1035: weight, in grams, of the ounce of gold, called “Troy”. The regular ounce weighs 28.35 grams. The persistence of this peculiarity, which dates from the ^15th century, is a mystery.

Tensions and oil

A safe haven par excellence, gold regularly sees its price rise in times of crisis or trade tensions. The clash between China and the United States would explain the most recent outbreak, according to many experts. The weakness of the Canadian dollar, for its part, is generally associated with the price of natural resources, primarily oil. As for the rise in 2011, it would simply be a speculative bubble that burst in early 2012.

190,040: estimate, in tonnes, of the quantities of gold that have been mined on Earth since the appearance of human beings. Two-thirds have been mined since 1950.

Source: World Gold Council, 2017

The main institutional holders (in tons)

United States: 8133

Germany: 3369

IMF: 2814

Italy: 2451

2016: year the Bank of Canada sold its last gold bars. The institution had been shedding its reserves for decades, explaining that it wanted to diversify its portfolio by investing in assets that were easier to trade on the markets.

57.4 tons: gold production in Quebec in 2017, for a value of 2.8 billion. The province is the second largest producer in Canada with 32.6%, behind Ontario where 43.2% of the metal is extracted.

Source: Natural Resources Canada

3246 tonnes: world gold production in ^2017. Canada ranks 5th, with 5.4%. The main producer is China, with 427 tonnes, or 13.1%.

Why is gold loved?

What is gold used for in 2019?

Jewelry: 47%

Investment: 25%

Central banks: 20%

Technology: 7%

Total: 1,123 tonnes (+8% compared to 2018)

Gold demand in the second quarter of 2019, according to the World Gold Council

What is a carat?

Since gold is a soft metal, it must be alloyed with another metal such as silver, copper, platinum or nickel to be usable. The proportion of gold in this alloy is expressed in carats, 24 carats being the highest purity. An 18 carat ring will thus contain 75% gold, that of 12 carats, 50%. The indication of the number of carats, called "hallmark", is generally found on the inside of the jewel. And it is not a question of coquetry left to the discretion of the jeweler, specifies Jean-Christophe Bédos. “It's an official hallmark measured by customs, it's extremely serious and fraud is punished very severely. »

Looking for the best price

Jewellery, counters of all kinds, postal offers: the possibilities are numerous when you want to sell your gold. What is the best method? What precautions should be taken? Some tips.

Artistic value

The vast majority of buyers will only consider one factor, which excludes artistic value: weight in pure gold. "When I see a piece of jewelry that has an interest other than its gold, I advise the person to keep it," says Jamil Khazzoum, co-owner of the Jamil jewelry store on Mont-Royal Avenue. If the jewel contains precious stones, only a gemologist and certain specialized jewelers will be able to provide an appraisal.

Calculate your gold

You must first remove any precious stones and weigh only the metal - a simple kitchen scale will do for an initial assessment. The number of carats determines the purity of gold: 24 carat gold is pure, 18 carat contains 75%, 12 carat 50%. Once the number of grams has been determined, consult the price of gold, for example on kitco.com. Please note: the price displayed is that of the Troy ounce, which weighs 31.1035 grams.

Jewelery

The simplest and safest option for ordinary mortals. From the small neighborhood jewelry store to Maison Birks, most guarantee the redemption of your gold during the day, less certain fees, after verification of identity and completion of forms. It is preferable to make an appointment, indicate the jewelers consulted by La Presse – it is also mandatory at Birks. Like all his colleagues interviewed, Ralph Kelendji, co-owner of the Diplomate jewelry store, considers the purchase of gold from individuals to be a marginal activity. “We do this once every two weeks, it's not that common. »

counters

Whether they have a permanent address like pawnbrokers or open occasional outlets like International Auction in Lévis, many businesses offer to buy your gold. It should be noted that some will take into account the overall value of the jewel, and not only its gold. It is recommended to visit several of them, the prices offered being very variable. "We always present interesting offers: we are a for-profit company, but we respect the customer," says Sylvain Martineau, owner of International Auction, which has around 40 employees and organizes thousands of events every year across Canada.

Postal shipments

SellGoldOnline.ca, CashForGoldCanada.com, CanadaGold.ca: websites offering you to send your gold by mail in exchange for a check abound. It is difficult to get an idea of ​​their reliability – none responded to requests from La Presse. On the side of the Consumer Protection Office, there are no statistics on this category of merchants. His spokesperson, Charles Tanguay, advises caution, however. "At first, test the business by selling only one piece of jewelry, of little value," he explains. In the case of companies that offer a service by mail, check if the company has a storefront and what is its reputation on the web. »

Redesign

This is a lesser-known and less profitable option, but one that is not without appeal: instead of selling your jewels, you can melt them down to create other jewels. “It's not just a redemption service where you leave with your cheque: there's a poetic dimension there, customer support which is more our objective,” says Jean-Christophe Bédos, CEO of Maison Birks. That's the wonderful thing about gold: it can be recycled endlessly and can remind you of your mother, your grandmother, something special. »