Selling Gold Jewelry in California: The Seller’s Guide

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Last updated: August 15, 2026 · By Gold California Editorial

The five-step decision path for a California seller

A California resident who wants to sell gold jewelry usually faces one of three situations. The piece is inherited and the family agrees to convert it to cash. The piece is broken, unworn, or unwanted and takes up drawer space. The household needs the cash and gold is the most liquid asset on hand.

All three situations funnel to the same five decisions. What is the piece made of, what is the market floor, which channel fits the piece, what protects you legally, and what will the sale cost in tax. The order matters. Skipping the karat and weight step is the most common way a seller leaves money on the counter.

This guide walks each step in the order a careful seller should run them. Every rule cited traces to the current California code or a federal regulation, and every dollar figure uses a clearly labeled illustrative spot price so you can rerun the math at the price you see today.

Step 1: identify karat and weight

Karat is the FTC-defined measure of gold purity in an alloy under 16 CFR Part 23, section 23.3. A seller who cannot state the karat of a piece is negotiating blind. The karat mark is usually stamped on the clasp of a chain, the inside of a ring shank, or the bail of a pendant. The stamp reads as one of five common markers.

• 10K: 10 parts gold in 24, fineness 0.4167 (417 stamp).
• 14K: 14 parts gold in 24, fineness 0.5833 (585 stamp).
• 18K: 18 parts gold in 24, fineness 0.750 (750 stamp).
• 22K: 22 parts gold in 24, fineness 0.9167 (916 or 917 stamp).
• 24K: pure gold, fineness 0.999 or better (999 stamp).

A one-gram 14K piece contains 0.5833 grams of pure gold. A one-troy-ounce 18K piece contains 0.750 troy ounces of pure gold, which is 23.33 grams. If a piece has no karat stamp, do not assume it is solid gold. A jeweler can test purity with an XRF analyzer, an acid touchstone kit, or a specific-gravity test in about 5 minutes.

Weight is the second half of the math. Most jewelers weigh in grams; some scrap counters quote in pennyweights (1 pennyweight equals 1.5552 grams) or troy ounces (1 troy ounce equals 31.1035 grams). Ask for the weight in grams and confirm it in writing on the buy ticket before any offer is stated.

Under FTC 16 CFR 23.3(b)(2), a seller or manufacturer cannot call a piece "gold" without qualification unless it is 24K throughout. That rule shapes the language on your buy ticket. A ticket that says "14K Gold" or "585" describes an alloy. A ticket that just says "gold" without a karat number is either sloppy paperwork or a scrap-only purchase, and you should ask for clarification.

Step 2: compute a realistic melt-value floor

Melt value is the gross gold content of a piece at the current spot price, before any refiner or dealer spread. It is the floor under any honest offer. Any buyer who quotes below the raw content value is charging a very wide spread and expects you not to check the math.

The computation has three inputs: weight in grams, karat fineness from the table above, and a spot price per troy ounce. Convert spot to a per-gram figure by dividing by 31.1035. At a labeled illustrative spot of $2,400 per troy ounce on August 15, 2026, one gram of pure gold is worth about $77.16.

The formula is grams × fineness × per-gram spot. For a 10-gram 14K piece: 10 × 0.5833 × $77.16 equals about $450 of raw content. For a 10-gram 18K piece: 10 × 0.750 × $77.16 equals about $579. For a 10-gram 22K piece: 10 × 0.9167 × $77.16 equals about $707.

Every offer you receive has to be compared against that raw content figure. A refiner or wholesale bullion buyer typically pays 85 to 95 percent of content on standard karat lots. A retail cash-for-gold counter typically pays 50 to 75 percent. Anything below 50 percent of content on a plain karat piece is a walk-away offer for a seller with time on their side.

Melt is not the same as market. A branded or signed piece from Cartier, Tiffany, Van Cleef, David Yurman, or Bulgari trades far above the content value in the resale market. Auction records at Sotheby's, Christie's, and Heritage set the real ceiling on those references. Never melt a signed piece before checking the recent auction record for the model.

Step 3: pick a selling channel

Four channels dominate the California market for used gold jewelry, plus the private sale as a fifth path. Each has a different fee structure, a different timeline, and a different level of paperwork.

Local secondhand dealer or jewelry buyer. A licensed shop under Business and Professions Code section 21641 that buys used jewelry and metals over the counter. Payment usually clears within one to three business days after the CAPSS report is submitted. Net payouts range from 50 to 80 percent of gross gold content for scrap, higher for wearable branded pieces.

Coin and bullion dealer. A shop that specializes in coins, bars, and investment-grade bullion. Coin dealers are usually the strongest bid on bullion coins and small bars. Under Business and Professions Code section 21627(d), coins and monetized bullion are excluded from the tangible personal property reporting rule. Jewelry pieces get treated as secondhand goods.

Pawn shop. A pawn transaction is a loan, not a sale. Under Financial Code section 21201(a), the loan runs for a minimum of 4 months, during which the pledgor may redeem the piece by repaying the principal and applicable charges. Selling a piece outright to a pawnbroker at the end of the redemption window converts the pledge into a sale, but the pawnbroker is buying at a wholesale price.

Estate auction or online marketplace. An auction house (Sotheby's, Christie's, Bonhams, Heritage) handles pieces above roughly $5,000 with real craftsmanship or brand value. Auction cycles run three to nine months. Seller commissions typically run 10 to 20 percent, plus a listing or photography fee. Online platforms (eBay, TrueFacet, The RealReal) handle smaller-ticket branded pieces on a similar commission model with a faster cycle.

Private sale. A direct sale to a collector, a family member, or a buyer found through a classifieds listing avoids all commissions but places the entire transaction on the seller. A private sale between individuals in California is not a taxable retail sale to the seller under Revenue and Taxation Code section 6006 unless the seller is in the business of selling gold. Payment and title transfer should be documented in a bill of sale.

Step 4: understand what California law protects

Four legal protections apply to a California seller of used gold jewelry. Each one lives in a different code, and each one addresses a different failure mode of the transaction.

Licensing and reporting under BPC 21625 through 21647. A secondhand dealer buying tangible personal property (which includes jewelry) must hold a local license under Business and Professions Code section 21641 and must report every purchase to the California Pawn and Secondhand System (CAPSS) by the next business day. A dealer who cannot show a license is not lawful. Confirming the license before you sell is a 2-minute step through the local police or sheriff's records unit.

No statewide 10-day hold on jewelry. Business and Professions Code section 21636(a) was scoped to firearms by the 2018 amendment (Statutes of 2018, Chapter 184). There is no statutory 10-day or 30-day hold on jewelry sold to a secondhand dealer in California. Some cities layer a local ordinance on top, and many dealers hold payment until the CAPSS report clears the next-business-day system. That is shop policy or local law, not the state statute.

Peace-officer investigative hold up to 90 days. Business and Professions Code section 21647(a) lets a peace officer place a hold of up to 90 days on secondhand property when there is probable cause the item is lost, stolen, or embezzled. Section 21647(a) explicitly excludes coins, monetized bullion, and commercial-grade ingots (0.99 fine gold or 0.925 sterling silver) from that hold. Honest sellers with documented provenance almost never trigger it.

Pawn redemption right under Financial Code 21201. A pawn contract must run for a minimum 4-month loan period. Financial Code section 21201(c) requires the pawnbroker to keep the piece intact during that loan period. Redemption at any time within the loan period requires only payment of the principal and charges accrued to the redemption date. That right is the difference between a pawn loan and an outright sale.

Mail-in buyback recourse. A national mail-in buyback service (Cash4Gold, Express Gold Cash, and similar) is subject to the Federal Trade Commission Act and the FTC Mail, Internet, or Telephone Order Rule (16 CFR Part 435). Most services offer a return window (typically 10 to 12 days after the check date) during which the seller may reject the offer and receive the pieces back at the buyer's expense. Read the return window in the terms before shipping.

Step 5: plan the tax side of the sale

The Internal Revenue Code treats physical gold, including jewelry, as a collectible under section 408(m)(2). That classification changes the federal capital gains rate on the sale. IRS Topic 409 confirms that net capital gains from selling collectibles are taxed at a maximum 28 percent federal rate for holdings over one year.

Basis and holding period. Your basis is what you paid for the piece plus documented improvement costs. If the piece was inherited, your basis is the fair market value on the date of death under 26 U.S.C. section 1014. If the piece was gifted to you, your basis is the donor's basis (carryover) unless the piece was worth less than the donor's basis on the gift date, in which case a special dual-basis rule applies under 26 U.S.C. section 1015.

Gain, loss, and reporting. A sale above basis produces a capital gain. A short-term gain (holding period one year or less) is taxed as ordinary income at your marginal federal rate plus California ordinary income tax. A long-term gain on a collectible held over one year is taxed at up to 28 percent federal, plus California ordinary income tax at your state bracket. The sale is reported on IRS Form 8949 and summarized on Schedule D.

Personal-use loss. A loss on a piece of personal-use jewelry is not deductible under 26 U.S.C. section 165(c), which allows individuals to deduct only trade-or-business losses and casualty losses. If you sell a family heirloom at a loss below your basis, that loss does not offset other gains and does not reduce taxable income. This asymmetry favors documenting basis before a sale.

California treatment. California does not have a preferential capital gains rate. Every dollar of capital gain (short or long) is taxed as ordinary income at California brackets, which reach 13.3 percent at the top. The Franchise Tax Board reports the sale on the resident California return; nonresident sellers with California-source income follow the nonresident rules on Form 540NR.

Sales tax on the seller. A private California individual selling a personal jewelry piece one time is not a retailer under Revenue and Taxation Code section 6006 and does not owe sales tax on the sale. The buyer's later resale of the piece to a customer is a taxable retail sale that the buyer collects. If you make repeated sales in a way that constitutes a business, the CDTFA may require you to register as a retailer.

The four channels compared on payout, timeline, and paperwork

Ranges reflect typical California market conditions and are not dealer quotes. Percentages reference gross gold content computed at spot times karat fineness. Source: California Business and Professions Code sections 21625, 21627(d), 21628, 21636(a), 21641, 21647; California Financial Code section 21201. Checked August 2026.

Worked example: a 30-gram 14K bracelet sold in Oakland

How to run the sale from stamp check to payment

1. Identify the karat and weigh the piece in grams. Read the stamp on the clasp, ring shank, or pendant bail (417, 585, 750, 916, or 999). If no stamp is present, ask a jeweler to test purity with an XRF analyzer or acid touchstone. Weigh the piece in grams and confirm the number on the buy ticket.
2. Compute the melt-value floor at the current spot. Multiply grams by karat fineness (0.4167 for 10K, 0.5833 for 14K, 0.750 for 18K, 0.9167 for 22K) by the per-gram spot price. Convert spot per ounce to per gram by dividing by 31.1035. Every offer you receive must be compared against that raw content figure.
3. Pick a channel that fits the piece. Scrap karat lots move fastest through a licensed secondhand dealer or bullion buyer. Bullion coins and small bars move best through a coin and bullion dealer. Signed or branded pieces go to consignment or auction. A pawn is a loan, not a sale, and preserves your right to redeem the piece within a minimum 4-month window.
4. Confirm the buyer's license and the paperwork. A secondhand dealer must hold a local license under Business and Professions Code section 21641 and must be registered to file to the California Pawn and Secondhand System (CAPSS). Ask to see the license number. Bring a government photo ID and expect to give a right thumbprint under Business and Professions Code section 21628. Keep a copy of the signed buy ticket.
5. File the sale in your tax records for the year. Report the gain on IRS Form 8949 and summarize on Schedule D. A long-term collectible gain is taxed at up to 28 percent federal under Internal Revenue Code section 408(m) and IRS Topic 409, plus California ordinary income tax on the same gain. A personal-use loss is not deductible under Internal Revenue Code section 165(c). Keep the appraisal, the buy ticket, and the basis worksheet for at least 3 years after filing.

Net proceeds by channel on a $2,000 replacement-value piece

The chart below stacks the four selling channels for a single piece with a $2,000 written replacement-value appraisal and 30 grams of 14K weight. Bars show typical net cash to the seller after commissions and fees. Numbers use the labeled illustrative spot of $2,400 per troy ounce on August 15, 2026. The auction bar is a mid-range on a signed piece; the auction range widens significantly by reference and condition.

Two patterns matter. Coin and bullion dealers pay the tightest spread on scrap karat and bullion, because their buy desk trades against a spot hedge. Auction pays the widest range on branded and signed pieces, because bidder demand can lift a Cartier, Tiffany, or Van Cleef reference far above content. Everything in between reflects the shop margin and the speed the seller needs.

When selling now is not the right move

Selling is a one-way decision and the piece cannot be unmade. Five situations make a hold, a pawn, or a wait a better path than a sale.

• The piece is signed by a heritage house and the seller has not checked auction records. A Cartier Love bracelet, a Tiffany T ring, or a Van Cleef Alhambra pendant trades far above content. Melting or scrap-selling a signed piece is a permanent loss the metal price cannot recover.
• The estate is unsettled or the ownership is in dispute. If the piece is part of a probate estate that has not closed, or if more than one heir claims it, the piece stays with the estate until the probate court resolves title. A sale before title clears exposes the seller to a claim by the other heir.
• The seller needs short-term cash but wants the piece back. A pawn loan under Financial Code section 21201(a) runs for a minimum 4-month period during which the pledgor may redeem the piece. That preserves ownership. A sale does not.
• The seller does not know the karat and has no time to test it. A blind sale of an unmarked piece to a walk-in cash-for-gold counter almost always underpays. A 15-minute stop at a jeweler with an XRF analyzer often adds hundreds of dollars to a quoted price.
• The piece has sentimental value that outstrips its market value. A grandmother's wedding ring at $400 in content and $600 in market may be worth keeping and insuring under a scheduled homeowners rider at 1 to 2 percent of value per year. Sentimental value is not a tax deduction, but it is a real reason to hold.

Common questions California sellers ask

Is there a 10-day hold on jewelry I sell to a California secondhand dealer?

No. Business and Professions Code section 21636(a) was scoped to firearms by the 2018 amendment (Statutes of 2018, Chapter 184). There is no statewide 10-day or 30-day hold on jewelry. Some dealers hold payment until the next-business-day CAPSS report clears, and some cities layer a local ordinance on top, but none of that is a state statutory 10-day hold on jewelry.

How do I confirm a California gold buyer holds a valid secondhand dealer license?

A secondhand dealer must be licensed under Business and Professions Code section 21641 by the chief of police in the city where the business operates, or by the sheriff for an unincorporated area. The license issues after a 30-day Department of Justice background review. Call the local police or sheriff's records unit with the dealer name and business address; the license record is a public record you can confirm in a few minutes.

What is the tax rate on selling gold jewelry in California?

The federal rate on a long-term gain (held over one year) is up to 28 percent under Internal Revenue Code section 408(m)(2) and IRS Topic 409, which classify physical gold as a collectible. A short-term gain (held one year or less) is taxed as ordinary income at your federal marginal rate. California adds ordinary income tax at your state bracket (up to 13.3 percent) on the same gain, because California has no preferential capital gains rate.

Do I owe sales tax when I sell gold jewelry as an individual in California?

No. A one-time private sale of personal jewelry by a California individual is not a retail sale under Revenue and Taxation Code section 6006 and does not create a sales-tax obligation on the seller. The buying dealer collects sales tax when they later resell the piece to their customer. If you sell repeatedly in a way that constitutes doing business, the California Department of Tax and Fee Administration may require you to register.

What documents do I need to bring when selling gold jewelry to a California dealer?

A government photo ID (usually a California driver's license or a state ID card) is required under Business and Professions Code section 21628(a). Expect the buyer to record your right thumbprint on the buy ticket. Bring any provenance you have (appraisal, receipt, GIA lab report, estate inventory) because it strengthens the offer and reduces the chance of a peace-officer hold under Business and Professions Code section 21647.

Can I get my piece back if I change my mind after a mail-in buyback sends me an offer?

Usually yes. Most national mail-in buyback services publish a return window (typically 10 to 12 days from the check date) during which the seller may reject the check, return it uncashed, and receive the pieces back at the buyer's expense. Read the return window in the terms before shipping the piece. Once the check clears the bank, the sale is generally final.

How do I compute the melt value of my piece before I walk into a shop?

Weigh the piece in grams. Read the karat stamp (10K, 14K, 18K, 22K, 24K) and convert to fineness (0.4167, 0.5833, 0.750, 0.9167, 0.999). Convert today's spot per troy ounce to per-gram by dividing by 31.1035. Multiply grams by fineness by per-gram spot to get gross content value. That figure is the floor. A refiner-grade offer typically clears 85 to 95 percent of it on standard karat lots.

If I inherited the piece, is my tax basis the original purchase price or the value on the death date?

The value on the date of death. Under 26 U.S.C. section 1014, an heir's basis in inherited property is the fair market value on the date the decedent died. A grandmother who bought a bracelet for $600 in 1985 and left it to you at a $1,400 date-of-death value gives you a $1,400 basis. A later sale at $1,400 produces zero gain. A later sale at $1,600 produces $200 of long-term collectible capital gain.