Many people have been asking me about the popular gold parties where people sell their unwanted gold jewelry. Recently, I appeared on LiveWell HD, which airs nationwide on ABC, to highlight the drawbacks of selling your unwanted gold in the current frenzy of the high-priced gold market.

TESTING YOUR GOLD

How do you know if all that glitters is really gold? Testing your jewelry is a good way to start. An expert appraiser's or jeweler's lab equipped with various evaluation machines is necessary to truly test your bling. While I know many of you like the idea of starting your own CSI labs when it comes to antiques, don't think you know what you've got until you ask an expert. If you are wrong, it could really cost you.

There are some home methods to test for gold, but they are not foolproof. One little-known fact about gold is that it, like other precious metals, is non-magnetic. Most of the time, a magnet will not attach itself to gold.

But don't be fooled! Remember, there may be other magnetic metals in your particular piece of gold jewelry, so the magnet test is not 100 percent effective. So don't throw away a piece that is attracted to a magnet thinking it's not gold. It still could be valuable.

We all like to see identifying marks, and gold pieces are commonly marked. For instance, a piece of 10-karat gold may be marked 417, a piece of 14-karat gold may be marked 585, and a piece of 18-karat gold may be marked 750. The karat weight is an indicator of the percentage of gold contained in a piece.

Are you wondering, can gold marks be forged? Of course! There are con artists in every field, and when gold prices are high like they are now, everybody is trying to make a buck — legitimately and otherwise. Remember how everybody had their hands in the real estate market only a few years ago?

INVITATION TO LOSE VALUE

Those gold parties look like fun, as groups of women from the neighborhood excitedly jump up and down as a gold buyer counts out $20 bills in exchange for unwanted gold jewelry. The fun stops when someone tells you that you are losing nearly half of your jewelry's actual value in the deal.

For instance, 14 karat gold is 58.5 percent gold. At most gold parties, when you sell your old 14 karat gold bracelet, the unwanted gold earrings or a wedding band from your first marriage, you are only getting paid for the 58.5 percent gold from that piece. You are getting nothing, absolutely nothing, for the other 41.5 percent of that piece. And some pieces have intrinsic value for the design, maker's impact, antique or vintage qualities.

At most gold parties, the buyers are not paying for the value of the design of the piece or the value of the other metals in the piece, just the gold content.

Then there is the emotion associated with the thrill, not unlike gambling, of getting money on the spot, and the peer pressure from friends who are encouraging you to sell even if you know the purchase offer is lousy. Oh, and often there is wine involved, too. Does this sound like an occasion where you'll make an informed, clear-headed decision? Think before you liquidate your gold at a gold party.

A Ph.D. antiques appraiser, author, award-winning TV personality and TV talk show host, Dr. Lori presents antiques appraisal events. Visit www.DrLoriV.com or call 888-431-1010.