Rise in the price of gold: precautions to take if you want to resell your jewelry

Although the price of gold is in very good shape, it is tempting to want to sell this precious metal to the highest bidder. But its sale is supervised to avoid scams. RMC Conso lays out the rules you need to know so you don't get fooled when reselling your gold.

Gold is available at a high price. At the end of the year, the price of the precious metal broke a record by crossing the barrier of $2,150 per ounce of gold (31.10 grams). Enough to push owners to go to the first dealer. But is now the right time to sell? For Christophe Gerber, president of the Or en Cash merchant network, you should only sell if the need arises. “Today, most of our clients do not specifically answer the question 'What do you plan to do with the money raised?'” he tells RMC Conso.

Gold, a safe haven, is also reputed to be a tangible investment, the price of which governs international purchases and sales. If you intend to get rid of your jewelry and dormant objects from inheritances or donations, it is advisable to do so with confidence and well-informed. Between information on prices or processes regulated by law, RMC provides you with information on good practices for the sale of your gold.

Legal obligations

Shops with window displays, street vendors, online sales sites, the possibilities to sell your gold are legion. “You don't have to stop at the first reseller, even if the proposed offer seems attractive, you have to ask for quotes,” explains Christophe Gerber to RMC Conso.

Depending on the items you choose to sell, some signed jewelry or collectible coins may be worth more than their weight in gold or have particularly precious stones. Therefore, it is important to consult several professionals. In the context of sales in stores, it is necessary to control several details, explains the DGCCRF (Directorate General for Competition, Consumer Affairs and Fraud Repression):

  • The purchase price applied to precious metal purchase operations must appear at the place where the public is received and, where appropriate, on all pages of the website relating to offers to purchase precious metals.
  • The words “at the price of gold” or “at the current price” are not enough. The professional is not obliged to align his price with that of gold and cannot justify the lack of display of the purchase price due to its variable nature. A decree specifies the terms and conditions for displaying the purchase price.
  • The quality of gold varies depending on its “carat”: prices are therefore different depending on whether it is 18 carats (75% pure gold) or 24 carats (99.9% pure gold).
  • Weighing of objects must be carried out in front of the consumer with sufficiently precise professional equipment. In front of a scale, look for a green label that certifies its compliance with the inscription “Validity”, accompanied by the current year.

Write a contract

Now is the time to sell your gold. Once again, it is necessary to observe surveillance points. “Paying in cash may seem like a gift from heaven but it is prohibited when a reseller mentions cash, you have to run,” warns the president of Or en cash.

During a sale, a written contract is issued. And it must include certain points, under penalty of nullity: the complete contact details of the professional, their registration number in the commercial and business registry, the contact details of the consumer, the date and address of the place of conclusion of the contract.

“The contract must also include the precise designation of the objects purchased by the professional, their weight, their purity in thousandths and, finally, the sales price with taxes included,” writes the DGCCRF.

All sales are subject to tax.

Finally, different taxes govern the sale of gold. In tax terms, two regimes are required for gold resellers: a flat-rate tax or a capital gains tax.

When the first amounts to 11% of the price of the property (plus an increase of 0.5%, for people domiciled in France), the second on the capital gain (36.2%) is degressive of the order of 5% annually beyond . the second year of detention. The exemption is, therefore, total for people who can justify having owned the property for more than 22 years.

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