Quick Answer
12 Questions Every Gold Seller Should Ask Before Handing Over Their Items
The questions that matter: what percentage of spot price are you offering, how do you test purity, can I watch the scale, what deductions apply, how and when do you pay, and will you give me a written itemized receipt? A reputable buyer answers all twelve without hesitation. This checklist is printable. Bring it with you.
Why the Questions You Ask Determine the Price You Receive
Gold buyers range from licensed precious metals dealers with certified scales and transparent pricing to informal operators who rely on customers not knowing how gold is valued. The difference between a fair offer and a bad one often comes down to whether the person across the counter expects you to push back.
The twelve questions below address the specific areas where buyers have the most room to work against your interests: the pricing formula, the testing process, the scale accuracy, the fee structure, the payment method, and the paper trail. None of these questions are hostile or unusual. Any buyer who finds them inconvenient is signaling something worth noting.
Before any appointment, anchor to the live spot: gold sits at $4,422.73 per troy ounce as of 23 hours ago. The spot price is the real-time benchmark. Everything a buyer offers you is expressed as a percentage of that number.
How Gold Buyers Calculate Their Offers
Most buyers start with the same formula. They weigh your items in troy ounces or grams, confirm the purity through testing, calculate the melt value using the current spot price, and then apply a discount that reflects their cost of refining, overhead, and profit margin.
A simplified version looks like this: a 14-karat gold ring contains approximately 58.3% pure gold. If the spot price is $3,200 per troy ounce and the ring weighs 5 grams (roughly 0.16 troy ounces), the melt value is approximately $298. A buyer offering 80% of melt value would pay around $238 for that ring.
The variables that change your payout are the spot percentage offered, the fees deducted, and the accuracy of the weight and purity assessment. The twelve questions below target each of those variables directly.
For a deeper look at how to calculate your gold’s floor value before any appointment, see our guide to getting maximum value when selling gold.
The 12 Questions to Ask Any Gold Buyer
What is today’s spot price, and what percentage of spot are you offering?
This is the foundational question. The spot price of gold is publicly available in real time, and any buyer should be able to state it and tell you exactly what fraction of it they pay for scrap gold. Offers for standard gold jewelry typically run between 70% and 95% of melt value depending on the buyer type, quantity, and local competition.
A buyer who cannot give you a clear percentage, or who tries to reframe the question, is obscuring the one number that lets you compare their offer to anyone else’s.
How will you test my gold’s purity, and can I watch the process?
Reputable buyers test in front of customers using acid testing (a controlled acid solution applied to a small scratch), an electronic gold tester, or an XRF spectrometer (a handheld device that reads purity without contact). Each method is legitimate when done correctly and in plain view.
Testing in a back room, or refusing to let you observe, removes your ability to verify the result. It also raises the question of what is happening to your items while you cannot see them.
Will I be able to see the scale reading while my items are weighed?
Scale transparency is a standard practice in legitimate precious metals transactions. In many states, commercial scales used in transactions are subject to weights-and-measures regulations that include accuracy requirements and inspection requirements, though specific rules vary by state.
A buyer who positions the scale so you cannot read it, or who reads the weight aloud without showing you, is removing your ability to verify a number that directly determines your payout.
Is your scale certified, and when was it last inspected?
Commercial scales used in buying transactions are typically subject to state inspection requirements under weights-and-measures laws. Inspection stickers show the date of the last official check. A scale that reads even 0.5 grams light on a 10-gram piece of gold changes the offer meaningfully at today’s spot prices.
Ask to see the inspection sticker. A certified scale in a legitimate business will have one. If the buyer says they calibrate the scale themselves, that is not the same as an official weights-and-measures inspection.
What fees or deductions apply beyond the base metal calculation?
Some buyers advertise competitive spot percentages but apply deductions afterward: refining fees, assaying charges, handling fees, or “convenience” costs that lower the net payout. These are legitimate in some contexts (especially for large or complex lots), but they need to be disclosed upfront and factored into any comparison you make across buyers.
The only number that matters is the final amount you walk out with. Ask for that figure explicitly, after all deductions, before you agree to anything.
Are you licensed to buy precious metals and secondhand goods in this state?
Many states require businesses that purchase secondhand gold, silver, and other precious metals to hold a license from the state or municipality. Some states require pawnbrokers and secondhand dealers to file transaction records with local law enforcement, which serves as a check against stolen goods entering the market.
Specific licensing requirements vary considerably by state. Your state’s department of consumer protection, attorney general’s office, or department of business regulation can tell you what is required in your area.
Will you provide a written itemized offer before I make any decision?
A written offer listing each item, its tested purity, its weight, and the calculated value protects you in two ways: it prevents misunderstandings after the fact, and it gives you a document you can use when getting competing quotes. Buyers confident in their pricing put it in writing without hesitation.
An oral offer given in a busy shop is easy to misquote or misremember. A handwritten or printed breakdown that you can take with you is a far more reliable record.
How do you pay, and how quickly after I accept?
Payment methods carry meaningfully different risks. Cash is immediate and final. Business checks clear within a few business days but require you to trust the account they are drawn on. Third-party checks from accounts you do not recognize can bounce. Wire transfers and ACH payments are traceable but add processing time.
For large transactions, consider asking for a cashier’s check drawn on a local bank or requesting same-day wire transfer to your account. Ask this question before the transaction, not after.
Is there any period during which I can reconsider after accepting?
Consumer protection rules around cooling-off periods for in-person transactions vary significantly by state and by the type of transaction. Some states provide rescission rights for certain purchases or sales made in person; others do not. The Federal Trade Commission’s Cooling-Off Rule applies specifically to sales made at a buyer’s home or at venues other than a seller’s normal place of business.
Ask the buyer directly what their policy is and whether any right of rescission applies. A reputable buyer will answer this question honestly. One who pressures you to decide before you are ready is not working in your interests.
What happens if my gold tests at a lower karat than the hallmark shows?
Karat stamps on jewelry are not always accurate. Older pieces may have been repaired with lower-karat solder. Imported jewelry sometimes carries stamps that do not reflect the actual alloy. If testing reveals a purity below the hallmark, the buyer’s offer changes.
Ask in advance: how will they notify you of the result, will they show you the test reading, and will they put the revised offer in writing before proceeding? You have the right to decline and take your items back if the adjusted offer does not work for you.
Do you buy gold-filled and gold-plated items, and at what rate?
Solid gold at any karat (10k, 14k, 18k, 22k, 24k) has intrinsic melt value. Gold-filled items contain a meaningful layer of gold bonded to a base metal and may have some scrap value, though far less than solid gold. Gold-plated items contain only a microscopic coating and typically have no meaningful scrap value.
If your lot includes a mix, ask the buyer to separate and price each category explicitly. Some buyers will offer a single blended figure that favors them when the lot includes lower-value pieces alongside solid gold.
What documentation will you provide me after the transaction is complete?
A written receipt is the record of what happened. It should list the items purchased, their weights, their tested purities, and the amount paid. Many states require secondhand goods dealers to maintain purchase records and provide receipts. A receipt also protects you if questions arise later about items that belonged to an estate or were part of inherited property.
Ask for this before you agree to the transaction. A buyer who hesitates to provide documentation is one worth walking away from.
Red Flags That Should Give You Pause
The questions above will surface most problems. These behaviors, in particular, warrant extra caution when you encounter them:
- The buyer takes your items to a back room or out of your sight for any part of the testing or weighing process.
- The offer is delivered verbally with pressure to decide immediately, without time to compare quotes.
- The buyer cannot or will not state the current spot price when asked directly.
- The scale is positioned so you cannot read the display.
- The buyer asks you to sign a document before stating the final price after all deductions.
- No written receipt is offered, and the buyer resists when you ask for one.
- The buyer cannot produce a business license or license number when asked.
The FTC maintains resources on avoiding fraud in precious metals transactions. The BBB also tracks complaints against local buyers by category. Checking the buyer’s BBB profile before your appointment takes a few minutes and is worth doing.
Comparing Offers the Right Way
Getting one offer and accepting it is rarely the best approach. The gold market is competitive, and buyers in the same city often differ by 10-20 percentage points in what they offer for identical items. That gap becomes meaningful on a $2,000 lot.
Before visiting any buyer, know your items’ estimated melt value. Weigh what you can on a kitchen scale (most report in grams; note the weights). Look up the current spot price. Calculate a floor: the minimum you would accept for each item.
Visit at least two buyers. Use the same written checklist for each. Compare their final net offers, not their stated percentages, since fees can be layered on after the percentage is quoted.
You can also make the competition come to you: post a free request on the Goldiew marketplace and up to 15 verified buyers can respond with sealed offers, so you compare their best prices side by side instead of collecting quotes shop by shop.
If you are selling inherited items or a significant quantity, consider getting a formal appraisal from a certified appraiser (independent of any buyer) before visiting dealers. The American Society of Jewelry Appraisers and the Gemological Institute of America both maintain directories of credentialed appraisers.
To find verified gold buyers in your area with customer reviews, use our gold buyer directory or browse by location using our gold dealer listings and coin dealer listings.
What Good Buyers Do That Others Do Not
Not every gold buyer operates below standard. Many legitimate dealers welcome informed sellers and actively demonstrate their transparency. Here is what the better buyers typically do without being asked:
They state the spot price at the start of the conversation. They perform all testing in plain view. They explain their pricing formula before quoting a number. They provide a written offer you can take with you. They accept that you will shop around, and they do not penalize you for it.
A buyer who has built a business on fair dealing has nothing to fear from these twelve questions. A buyer who treats them as an inconvenience or tries to redirect you away from them is telling you something useful.
For additional guidance on spotting undervalue offers and protecting yourself during the evaluation process, see our guide on how to identify a lowball gold offer.
Put these 12 questions to work without the legwork
The fastest way to apply this checklist is to make buyers come to you. Post one free request on the Goldiew marketplace: describe your items once, and up to 15 verified buyers can respond with sealed offers. Each buyer puts in their best price without seeing what competitors offered, and you compare offers side by side with each buyer’s rating and review count. It is free, no account is needed, and your contact details are shared only with the buyer you accept. You can also browse open requests to see how it works.
Frequently Asked Questions
What percentage of spot price should I expect a gold buyer to offer?
Offers for scrap gold typically run between 70% and 95% of the current spot price, depending on the buyer type, the quantity you are selling, and local market competition. Coin dealers and dedicated precious metals dealers often offer higher percentages than pawn shops. Large lots generally earn higher percentages than single items. Asking the question directly and then comparing across at least two buyers is the fastest way to establish a fair range for your specific items.
Can I bring my gold to multiple buyers before deciding?
Yes. Nothing in any transaction is binding until you sign an agreement or accept payment. You have the right to collect quotes from as many buyers as you wish before deciding. Bring each buyer the same items and use the same checklist so your comparison is accurate. Do not leave items with any buyer until you have accepted their written offer.
What testing method is most accurate for determining gold purity?
XRF (X-ray fluorescence) spectrometry is generally considered the most accurate non-destructive method and is used by larger dealers and refiners. Acid testing is accurate and widely used but leaves a small mark on the item. Electronic gold testers are fast and non-contact but are less precise than XRF. For everyday scrap gold transactions, acid testing and XRF are both reliable when performed by experienced buyers. Touchstone testing (a variant of acid testing) is also acceptable. Ask the buyer which method they use and whether the result will be provided in writing.
Do I need to pay taxes on money I receive from selling gold?
Tax treatment of proceeds from selling physical gold depends on several factors including how long you held the items, your cost basis, and your total income. The IRS treats physical gold as a collectible, and gains may be subject to different rates than other asset sales. Consult your tax advisor for guidance specific to your situation. This guide does not provide tax advice.
What is a licensed secondhand dealer, and how do I verify one?
Many states require businesses that purchase used gold, silver, and other precious metals to register or obtain a license from the state, county, or city. The specific name for this license varies: secondhand dealer, pawnbroker, precious metals dealer, or similar. To verify a buyer’s license, ask for their license number and the issuing authority, then contact that authority directly. Your state’s attorney general website, department of consumer protection, or department of licensing typically maintains a searchable database of licensed dealers.
What should a receipt from a gold buyer include?
A proper receipt from a gold purchase transaction should include the buyer’s business name, address, and license number; the date of the transaction; a description of each item purchased; the weight of each item or the total weight; the tested purity or karat of each item; the spot price used in the calculation; the percentage of spot applied; any fees or deductions itemized separately; the total amount paid; and the payment method. Many states legally require dealers to maintain transaction records, and some require a copy to be filed with local authorities.
How do I know if a gold buyer is legitimate before I go in?
Before visiting any buyer, check their BBB profile at bbb.org for accreditation status, complaint history, and customer reviews. Search for their business name along with your state name in your state’s licensing database to verify they hold any required permits. Look for verified customer reviews on multiple platforms. In states that require dealers to maintain transaction logs with law enforcement, licensed dealers are part of a regulatory record that provides some accountability. Our gold dealer directory lists buyers with verified customer reviews to help with this research.
What is the difference between spot price and melt value?
Spot price is the current market price for one troy ounce of pure (24-karat) gold, quoted in US dollars. Melt value is the calculated value of your specific item: the weight of your item in troy ounces multiplied by its purity percentage multiplied by the spot price. A 14-karat item contains 58.3% pure gold, so its melt value equals its total weight in troy ounces times 0.583 times the spot price. Buyers offer a percentage of this melt value, not of the spot price directly.
Sources
- Federal Trade Commission. Cooling-Off Rule: Sales Made at Homes, Workplaces and Dormitories, or at Facilities Rented on a Temporary or Short-Term Basis. 16 CFR Part 429. ftc.gov.
- Federal Trade Commission. Gold, Silver, and Precious Metals: A Guide for Consumers. Consumer Information. consumer.ftc.gov.
- FINRA. Investor Alert: Precious Metals Fraud. Financial Industry Regulatory Authority. finra.org.
- Better Business Bureau. BBB Business Profiles: Search and Complaint Data for Precious Metals Dealers. bbb.org.
- National Conference on Weights and Measures. NCWM Handbook 44: Specifications, Tolerances, and Other Technical Requirements for Weighing and Measuring Devices. NIST / NCWM.
- Internal Revenue Service. Publication 550: Investment Income and Expenses (Collectibles). irs.gov.
- World Gold Council. Gold Prices: Real-Time Data. gold.org.