The flip side of what we talked about earlier, the record high prices of gold and how insane it is to buy high like all the ads are pushing, is that this is THE time to sell.

According to most experts, gold prices are an inflating bubble which, just like the housing market and the Dot Com market before it, will burst any day now. When it does, prices will probably freefall for quite some time. That's just how it works.

You can tell that this is a great time to sell, because that's what all the experts are doing: trying to sell (to you). All of those "Buy gold now! It's never been worth zero!" ads are designed by people who have a lot of gold, and who very much want to sell it. They know what they're doing - you should follow their lead!

But how?

I would have shrugged at this question three days ago. But last night as I was digging through some boxes, I found a little box of jewelry that I had received as gifts over the years and NEVER worn. This was stuff that was purchased in the early 90s, when gold was at an almost record low. Gold jewelry was a pretty cheap gift back then!

The real question was, where to sell it? Because gold is such a high-value item right now, there are a lot of people preying on the ignorance of the public. I figured that I knew so little about gold, it would be pretty easy for someone to take advantage of me.

And in fact, there is a whole entire predatory industry set up to capture people like me. People who found some stuff in the back of a drawer and just want to cash it out. People who don't know much about the market, much less have the ability to give this rope bracelet a realistic appraisal.

I ended up contacting a lot of local friends and family members. My aunt gave a solid reference for a jewelry store in our area. Jewelry stores that purchase jewelry are your best bet. Look for a clean, well-lit, respectable-looking store.

Pawn stores are probably the next best choice. Again, look for a place that looks reputable. Avoid the sketchy-looking pawn stores in the bad parts of town.

No matter what, NEVER fall for those "Cash for Gold" scams where you mail in your jewelry. They offer you notoriously low prices, and use bargaining tactics which are dubious at best. The only reason to use these services is if you're fencing stolen goods. (Not kidding.)

Before you go in, decide if there's a minimum amount you're willing to accept. The store will understand if you would prefer to keep your jewelry rather than sell it at the amount they offer. Some cheerful haggling is acceptable at pawn stores, but not at a jewelry store. In either case, don't push your luck, and don't be a jerk about it.

Photo credit: Flickr/pvera