I inherited a bunch of gold jewelry from my grandmother — potentially worth thousands. With gold now hitting new highs, is it a good time to sell?

While Nora’s grandmother was not a big-time investor, she did amass an enviable jewelry collection. Now that she has died, Nora discovered that in her will her grandmother left the majority of the pieces — some of them very valuable — to her.

Nora is no expert in jewelry or the commodities market, but she knows the collection is worth several thousand dollars. She wants to make the most of this unexpected windfall, while also respecting her grandmother’s legacy and ensuring that she doesn’t part with anything of great sentimental value to her family.

Here’s what to consider when your inheritance comes in the form of financially — and emotionally — precious assets.

The rising gold market

“We’re seeing an increasing number of people — mostly regular individuals and families, not investors — selling or melting old jewelry to access quick cash while the market is strong,” Tim Schmidt, founder of Gold IRA Custodians, said in an interview with CNBC in April [2].

“For some, it’s a way to cover urgent expenses; for others, it’s an opportunity to capitalize on long-forgotten pieces that have suddenly become far more valuable than they were just months ago,” he explained.

Right now gold prices stand at about $3,900 (per ounce), continuing to set record highs. For those with gold jewelry in the vault or simply in their jewelry box, it may be time to think about turning these pieces into cash. But doing it smartly requires some research.

“It can be a smart move for those needing immediate funds, but not every piece should be melted down,” Schmidt said.

“Items with historical or artistic value, like family heirlooms or antique jewelry, may be worth more in their original form than as melted metal.”

Therefore, it’s worth consulting a reputable jeweler or appraiser before you consider selling. You should also check the spot price of gold online before you consider bringing it to a local shop to sell.

If you have gold in the form of bars or coins, you should also beware of high trading costs, and understand what these will be before you decide to sell. Since the marketplace for gold is so competitive right now, it pays to consult a few shops and do some online research so you can find the best price for your trade.

As for timing, there’s no guarantee these record highs will last.

“My view is that gold hit an interim peak, which should hold up at least into the fall,” Jordan Roy-Byrne, founder of The Daily Gold, told CNBC [2].

So, now might be the best time to sell if you need ready cash. Just be aware that you may be taxed on your sale if you hold a substantial amount of gold. Federal long-term capital gains taxes on collectibles can reach 28%, and the IRS considers physical gold like jewelry, coins or bars to belong to this category.

Tips for making the most of a large physical asset inheritance

As for Nora, in addition to doing her research to understand the value of her grandmother’s jewelry — both financially and sentimentally — she should also understand how she wants to use the inheritance to best support her financial goals.