If you have old gold items around the house, such as old pieces of gold jewelry that you no longer want or need, then you may have considered selling these gold items to a scrap gold buyer. However, you may believe many misconceptions about gold buyers that lead you to think that none of these buyers will want the items you have, you will not obtain much money in exchange for your gold, or one of many other common misconceptions that plague the industry.
Read on to learn about two common misconceptions about scrap gold buyers and the facts behind these myths.
1. Gold Buyers Do Not Want Broken or Out-of-Style Items
Many people are hesitant to approach scrap gold buyers when they have gold items that are broken, gold jewelry that is not in style, and/or gold collectibles that are not in good condition due to the belief that most scrap gold buyers only want gold items that are in great shape and ready to re-sell to customers.
However, the truth is that unlike pawn shops, thrift shops, and other businesses that purchase jewelry items and resell them for a profit, scrap gold buyers typically do not care about the condition of the gold items they purchase. These buyers rarely resell the gold they purchase as-is and instead, melt it down to create entirely new gold items, such as bullion.
For this reason, you can take any item made from gold to a scrap gold buyer without worrying that they will decline it due to its current condition.
2. You Must Pay Taxes on All Money You Obtain When Selling Gold
Some people avoid selling their gold due to believing in the common misconception that any money obtained from the sale of gold must be reported on their annual tax return, and a hefty fee of gold sale earnings must then be paid to the IRS or deducted from their tax return.
However, the truth is that earnings from the sale of gold are only taxed in specific circumstances. The average person selling scrap gold to a scrap gold buyer does not have to pay taxes on their earnings unless they make a major profit during the sale. For example, if you purchased a gold necklace at a jewelry store for $200 and the gold buyer pays you $100 for the necklace many years later, you do not owe taxes on the sale. On the other hand, if the scrap gold buyer pays you much more than the initial purchase price of a gold item, you may have to report the profit on your next income tax return.
If you are hesitant to sell your old gold items to scrap gold buyers due to misconceptions you have heard about scrap gold buyers, then you now know the facts behind a couple of the most common gold-selling myths.