The price of cash for gold has gone through the roof, passing the key level of $1,000 an ounce in early September and hitting an 18-month high mid-month.

The gold rush is great news for investors holding gold as an asset, especially as it beat all other asset classes in 2008. But even if you don't have money invested in gold or gold-mining companies, there is a way you could cash in.

If you inherited or were gifted some gold jewellery, that you no longer want or like - or is broken - then selling it to a gold merchant could see you make some money back. There are a host of websites out there offering you hard cash in return for your unwanted gold items, from jewellery to coins, ornaments and even teeth.

The craze for selling gold for scrap is originally an American concept, but now firms are springing up left, right and centre in the UK all hoping to persuade you to part with your unwanted gold.

But should you take advantage? The answer really lies in the item you wish to sell and the amount of effort you want to put into getting cash for it.

How they work

If you have a rare or antique piece of jewellery, this will not be reflected in the price. In addition, precious stones set within a piece - a cluster of diamonds in a ring, for example - is unlikely to be of interest and you probably won't be given extra cash for them.

You have two main options. The first is to send your gold in to a company that provides free and insured postage, to find out what it will pay. You can then either agree to accept the offer - in which case you should be paid immediately - or have the item returned to you.

Returned items may be posted back for free, or you may face a charge. Remember, these companies are buying gold for scrap to be melted down, so there is no going back if you accept an offer.

You won't be able to get a valuation ahead of sending in an item. Clearly, there is risk involved in this method, as you have no protection should the company turn out to be a scam. Many postal gold companies say they rely on recommendations from previous customers to bring in new clients.