Almost everyone selling a diamond in New York is also selling gold. The diamond sits in a gold or platinum setting; the earrings have gold posts; the old chain, the broken bracelet and the single earring are in the same drawer. Gold is the easier half of the sale to understand, because it comes down to two numbers you can check yourself: how much pure gold is there, and what is pure gold worth today. This page shows you how to work out the first and where to find the second, and what New York City requires of anyone who buys it from you.
Diamond Buyers NYC is an independent referral service, not a buyer, pawnshop or dealer. When you call or send the form, your details go to an independent buyer in New York, who makes any offer. This site gives no prices: gold moves every day.
Call to tell an independent New York buyer about the gold and diamonds you want to sell.
What karat means
Karat measures how much of a piece is gold. Pure gold is 24 karat, so the share of gold in any piece is its karat divided by 24. Under the FTC’s jewelry guides, the plain word ‘gold’ means fine, 24 karat gold. Anything less should carry its karat right before the word, such as ’14 Kt. gold’, and 14 karat should not be called ‘solid gold’.
| Karat | Gold share | Pure gold in 10 grams |
|---|---|---|
| 10K | 10 / 24 = 41.7% | 4.17 grams |
| 14K | 14 / 24 = 58.3% | 5.83 grams |
| 18K | 18 / 24 = 75% | 7.5 grams |
| 22K | 22 / 24 = 91.7% | 9.17 grams |
| 24K | 24 / 24 = 100% | 10 grams |
The National Stamping Act allows a small tolerance. A gold article with no solder may be up to three parts per thousand under its mark; with solder, up to seven. A stamp is the maker’s mark, not a measurement, so a buyer may check a piece rather than take the stamp alone.
Plated is not solid
Marks such as ‘Gold Plate’, ‘Gold Plated’, ‘Gold Overlay’ and ‘Rolled Gold Plate’ describe a layer of gold alloy, at least 10 karat, over another metal, with the plating’s karat stated before the term, for example ‘1/40 12 Kt. R.G.P.’. A plated piece is not solid gold, and a buyer values it very differently. If a piece carries one of these marks, say so when you ask for an offer.
Silver in the same drawer
Some diamond jewelry is set in silver. In the US, ‘sterling’ or ‘925’ means at least 92.5% silver, and ‘coin silver’ at least 90%, under the FTC’s jewelry guides. Silver plate is a thin layer of silver over another metal and is not sterling. Weigh and sort silver separately from gold.
Troy ounces, grams and pennyweights
Gold is priced by the troy ounce, which is not the ounce on a kitchen scale. The National Institute of Standards and Technology (NIST) gives one troy ounce as 31.10348 grams. An ordinary avoirdupois ounce is 28.34952 grams, so a troy ounce is heavier. The trade also uses the pennyweight (dwt), 1.555174 grams, which is one twentieth of a troy ounce.
- Grams to troy ounces: divide by 31.10348.
- Pennyweights to troy ounces: divide by 20.
- Troy ounces to grams: multiply by 31.10348.
How melt value is worked out
Melt value is the value of the pure metal in a piece and nothing else. It is the starting point for any offer on gold that will be refined, and you can work it out at home.
The formula
Melt value = weight in troy ounces x fineness x spot price per troy ounce.
Take a 14 karat chain that weighs 10 grams. Ten grams divided by 31.10348 is about 0.3215 troy ounce. At 14 karat the fineness is 14 / 24, about 0.583, so the chain holds about 0.1875 troy ounce of pure gold. If spot gold is X dollars per troy ounce, the chain’s melt value is about 0.1875 x X dollars. Look up the day’s spot price when you sell; we do not print one, because it changes through the day.
A buyer’s offer is usually below melt, because the buyer pays to refine the metal and needs a margin. That is normal. What you are comparing between buyers is how far below melt each one offers, and whether they weighed and graded the metal the same way.
Gold with diamonds in it
A diamond ring is two sales at once. The stone is judged on the four Cs: clarity, color, cut and carat weight. The setting is weighed and valued for its metal, unless it is a signed or unusual design a buyer wants to resell whole. Ask every buyer to separate the two, so you can see where any difference between offers comes from.
- Engagement rings and solitaires. One main stone, valued on its own, plus the band. The page on how to sell diamonds in NYC covers the stone.
- Pavé and cluster pieces. Many small diamonds, often with no report, valued together, plus the metal.
- Loose stones from a reset. If the diamond is already out, the old mount is just gold. The page on how to sell loose diamonds covers the stone.
- Signed pieces. A piece from a maker such as Tiffany & Co., Cartier or David Yurman may be worth more than its metal and stones to some buyers. Bring the box and papers.
Should you take the stones out before selling the gold? Usually not. Removing stones risks damage and leaves you with loose diamonds to sell separately. Bring the piece as it is and ask for the offer to be split.
New York City’s rules for gold buyers
New York City is strict with businesses that buy gold from the public, and the rules work in the seller’s favor. They come from the NYC Department of Consumer and Worker Protection (DCWP) and apply in all five boroughs, from 47th Street to a neighborhood store.
- A licence. Any business that buys or sells used goods in the city needs a DCWP Secondhand Dealer General licence. Buying or selling exclusively online is exempt. The licence and DCWP’s complaint sign must be posted in view, and the licence number must be on receipts and cards.
- A scale, and the troy weight told to you. A business that buys gold, silver, jewelry or other precious metal must have a scale and tell the seller the troy weight of the metal.
- An approved scale. It must be a type approved by the New York State Department of Agriculture and Markets, read in divisions of 0.01 troy ounce or smaller, and be marked Class II or III.
- ID and signature. You show official identification with a signature, the buyer records its type and number, and you sign in front of the dealer.
- Records with photographs. The buyer records each item and you as the seller, keeps the record for three years, and for precious metal also keeps electronic records with digital photographs of each item, on LeadsOnline, for six years. DCWP inspectors and the NYPD can see them.
- No minors and a 15-day hold. Buyers cannot buy from minors, and used items cannot be resold within 15 days of purchase.
Watch the piece go on the scale, read the display yourself, and write the weight down. If one buyer’s weight differs from another’s, ask why: a stone left in, a clasp of different metal or a plated part can all change it.
Selling gold and diamonds together? Call, and an independent buyer in New York comes back to you.
Where to sell gold in NYC
People who search for gold buyers in NYC are usually choosing between the Diamond District on West 47th Street, where many buyers work side by side, and a store closer to home. Both work under the same city rules. The district’s advantage is that a second and third written offer are a few doors apart; the guide to the Diamond District NYC sellers use explains how to get there and how to compare offers on the block. A pawnshop is a different business: a pawn is a loan against the piece and needs a separate DCWP pawnbroker licence.
Preparing gold to sell
- Sort pieces by karat stamp: 10K, 14K, 18K and so on, plus unmarked pieces in a pile of their own.
- Put plated and silver pieces aside. They are valued differently.
- Weigh each pile at home if you have a kitchen scale in grams. It will not be exact, but it tells you roughly what to expect.
- Keep diamond-set pieces whole.
- Bring official photo ID. Without it, a licensed New York City buyer cannot buy from you.
- Ask each buyer for the troy weight, the karat they assigned and the offer, in writing.
Gold coins and taxes
Gold coins and bars are bullion, priced on their metal content, and some coins carry collector value too. On taxes, the IRS instructions for Form 1099-B say a sale of precious metal is not reportable by the broker if the form of metal is not one the CFTC has approved for regulated futures trading, or if the quantity is below the minimum such a contract calls for. The IRS’s own example: a broker selling a single gold coin need not file if every approved contract for that coin calls for delivery of at least 25 coins. Some larger sales of certain bullion coins and bars may be reported; most small sales of jewelry and single coins are not.
Reporting is not the same as tax. A profit on coins and other collectibles may be taxed as a capital gain, at a maximum federal rate of 28% for collectibles (IRS Topic 409). Ask a tax professional about your own sale.
Red flags when you sell gold
- A scale you cannot see, or a weight in ‘ounces’ without saying troy.
- No DCWP licence on the wall or on the receipt.
- An offer for the whole pile with no karat or weight given.
- No request for your ID: a licensed buyer must ask.
- Pressure to sell before you can compare.
Questions people ask
Where is the best place to sell gold in New York City?
There is no single best place. Any licensed buyer must weigh your gold on an approved scale and tell you its troy weight, so compare written offers that state the weight and karat. The Diamond District makes it easy to get several.
How does a buyer work out what my gold is worth?
From its melt value: weight in troy ounces, times its fineness, times the spot price per troy ounce. An offer is usually below melt, because the buyer pays to refine the metal and needs a margin.
How does the IRS know if I sell gold?
Some sales of certain bullion coins and bars are reported by the dealer on Form 1099-B; most small sales of jewelry and single coins are not. Whether you owe tax is a separate question. Ask a tax professional.
Is 14 karat solid gold?
It is 58.3% gold. Under the FTC’s guides, 14 karat should be described as 14 karat gold, not as ‘solid gold’, and the unqualified word ‘gold’ means 24 karat.
Should I remove the diamonds before selling a gold ring?
Usually not. Bring the ring as it is and ask the buyer to value the stone and the metal separately.
Call the line
One number, answered in New York.