How To Sell Gold: 3 Things You Must Know
If you want to sell gold, you must be fully equipped with as much information as possible.
This knowledge will help you get the best possible price.
What Is Involved In The Selling Process? People who have broken or unwanted pieces of gold jewelry can easily sell them off to gold dealers and jewelers.
These gold-buying companies purchase such jewelry and extract the gold from it.
Therefore, your broken pieces of jewelry are still valuable, as long as they contain the precious metal.
When planning to sell your jewelry, it's always wise to check different offers from a number of jewelers.
You're likely to find a better price from the second or third jeweler that you visit.
Alternatively, you can check for different offers from gold dealers, many of whom offer online quotes.
How Much Money Can You Get From It? Having a prior estimate of the price you might get for your jewelry is important.
An assessment carried out by Money Saving Expert on April 2014, revealed some of the prices you would get for a sample of gold items: - An 18 carat wedding ring would give approximately $103.
- A 9 carat gold ring had a price of approximately $47.
- A pair of 9 carat stud earrings would give you approximately $8.
- An old gold tooth crown (14 carat) had a price of approximately $55.
- A 9 carat butterfly back earring would give you approximately $1.
92.
Such prices reflect the expected returns from selling old and broken items.
You can expect higher returns from top carat items.
Taxes on Gold When calculating your net profit from selling gold items, you must first consider the expected cost.
Obviously, any taxes you pay will affect this calculations.
Two forms of taxation must be considered.
These include GST (Goods and Services Tax) and CGT (Capital Gains Tax).
In the first instance, GST wouldn't apply to jewelry and numismatic coins, since they aren't considered investment grade gold.
For a metal to be considered taxable under the GST Act, it must possess the character of that particular metal and not a different character, such as jewelry.
This means that such precious metal must possess a specified fineness, apart from being in an investment form.
Some of the precious metals considered taxable under the GST Act include: (I) Gold (in an investment form) bearing at least 99.
5% fineness.
(ii) Platinum of at least 99% fineness and in an investment form.
(iii) Silver (in an investment form) bearing at least 99.
9% fineness.
(iv) Any other substance that is in an investment form and possesses a particular fineness specified in the regulations.
According to the Australian Taxation Office, instances when GST is applicable include transactions when bullion dealers sell such products as 22k gold coins or 92.
5% sterling silver coins.
On the other hand Capital Gains Tax would apply when you sell your gold jewelry.
Capital gain is simply the difference between the cost of acquiring an asset and income received after selling it.
The Australian Taxation Office states that CGT is actually part of your income tax.
This knowledge will help you get the best possible price.
What Is Involved In The Selling Process? People who have broken or unwanted pieces of gold jewelry can easily sell them off to gold dealers and jewelers.
These gold-buying companies purchase such jewelry and extract the gold from it.
Therefore, your broken pieces of jewelry are still valuable, as long as they contain the precious metal.
When planning to sell your jewelry, it's always wise to check different offers from a number of jewelers.
You're likely to find a better price from the second or third jeweler that you visit.
Alternatively, you can check for different offers from gold dealers, many of whom offer online quotes.
How Much Money Can You Get From It? Having a prior estimate of the price you might get for your jewelry is important.
An assessment carried out by Money Saving Expert on April 2014, revealed some of the prices you would get for a sample of gold items: - An 18 carat wedding ring would give approximately $103.
- A 9 carat gold ring had a price of approximately $47.
- A pair of 9 carat stud earrings would give you approximately $8.
- An old gold tooth crown (14 carat) had a price of approximately $55.
- A 9 carat butterfly back earring would give you approximately $1.
92.
Such prices reflect the expected returns from selling old and broken items.
You can expect higher returns from top carat items.
Taxes on Gold When calculating your net profit from selling gold items, you must first consider the expected cost.
Obviously, any taxes you pay will affect this calculations.
Two forms of taxation must be considered.
These include GST (Goods and Services Tax) and CGT (Capital Gains Tax).
In the first instance, GST wouldn't apply to jewelry and numismatic coins, since they aren't considered investment grade gold.
For a metal to be considered taxable under the GST Act, it must possess the character of that particular metal and not a different character, such as jewelry.
This means that such precious metal must possess a specified fineness, apart from being in an investment form.
Some of the precious metals considered taxable under the GST Act include: (I) Gold (in an investment form) bearing at least 99.
5% fineness.
(ii) Platinum of at least 99% fineness and in an investment form.
(iii) Silver (in an investment form) bearing at least 99.
9% fineness.
(iv) Any other substance that is in an investment form and possesses a particular fineness specified in the regulations.
According to the Australian Taxation Office, instances when GST is applicable include transactions when bullion dealers sell such products as 22k gold coins or 92.
5% sterling silver coins.
On the other hand Capital Gains Tax would apply when you sell your gold jewelry.
Capital gain is simply the difference between the cost of acquiring an asset and income received after selling it.
The Australian Taxation Office states that CGT is actually part of your income tax.
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