Am I getting the best deal for my scrap gold??? Refiners might not be for me.

[blai745]

Hi im new to this pretty awsome treasure forum and I just started my own little gold buying operation for a couple months now and use mostly craigslist for advertising.. So I hear alot of people talking about selling there gold to refiners and usually get 98%-95% of spot.. of course many knowledgeable people also say that all gold is a half Karat less ( Example 14k is 13.5k .5625).. So when they give it to the rifiners they get 98% of TRUE MELT value....

Now for me I sell all the gold I buy to very good local Gold buyer which pays me 92% of the hallmarking. (Example 92% of 14k .5833) and pays me cash. He also buys from alota jewelers too..great guy. So my question is, which one do you think is more worth it??
Here is allitle analysis. Spot gold is at $1347 and i'll be using 100 grams of 14k as an example with the refinery melting 14k at 13.5k .5625

Refiner- $1347 divided by 31.1= $43.31 then times .5625 = $24.36 times 98% = $23.87 X 100grams = $2387 By CHECK

My gold buyer- $1347 divided by 31.1 = $43.31 times .5833 = $25.26 times 92% = $23.24 X 100grams =$2324 CASH!!!

Ive been dealing with my super trusted gold buyer on probably about 10 transacations now with averaging about 100 grams per transaction and I acid test all my gold. Im pretty positive I did the math correct, sometimes scrap gold buying will rattle your brain allitle lol..

I kinda think a $63 dollar difference is absolutly ok with me without me shipping and waiting, checks etc.. Of course it could be even more or a $10-$100 difference and thats still fine with me.
Thanks for checking this post and also please let me know if thats basically what the refiners pay based on my equation. Here also is a small example of what I bought over the months.

Bill

 

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[cyberdan]

So when they give it to the rifiners they get 98% of TRUE MELT value....

local Gold buyer which pays me 92% of the hallmarking

you are right marked gold is usually 1/2 K lower than marked.
BUT, last week I bought a 14K P ring (P = plumb = guaranteed 100% the K mark) it tested at 10K so you still can't believe anything you see.

here is your math based on what I understood. If I had a 14K marked ring that weighs 10gr and gold is at $1300 oz. this is what you will get.

marked 14K @ 92% payout cash $224.11
actual 13.5K @ 98% payout check $230.20

the difference is only $6.09 not bad at all because it would cost me that much just to mail it to my refinery.

 

[blai745]

Yea..the reason why I posted this is with The Gold guy im selling to he gives me cash and if I were to sell it to a refinery id get just like 1% or 2% more, but will have to deal with mailing and checks and looking at the final receipt/ and make sure his gold recovery math was the same as mine. lol I just might make gold buying a full time job, plus garage sales are a good little weekend salary.

 

[markmopar]

Sounds like you're doing well. I'd do the same thing. A few bucks less and cash in hand is worth the difference to me.
I do the same with silver coin. I can get a bit more if I sell on the Nucleo Exchange, but I also have to pay shipping/insurance and wait a minimum of a week and then pay for a wire transfer or wait longer for a check. USPS now requires that precious metals be sent certified mail or they won't honor insurance claims for lost shipments. I have a guy that will buy all the coin I have at a price close to what I could get online and he's local with cash.

 

[Au_Dreamers]

Refiner- $1347 divided by 31.1= $43.31 then times .5625 = $24.36 times 98% = $23.87 X 100grams = $2387 By CHECK

My gold buyer- $1347 divided by 31.1 = $43.31 times .5833 = $25.26 times 92% = $23.24 X 100grams =$2324 CASH!!!

and I acid test all my gold.

I kinda think a $63 dollar difference is absolutly ok with me......Ive been dealing with my super trusted gold buyer on probably about 10 transacations now with averaging about 100 grams per transaction

Bill

Interesting post Bill, I have been thinking of doing the same thing and have been checking Tnet for more info.
I’m looking to make some money to fund my T-hunting but also to stop the "ripping off" of the less informed.
I was skeptical the first time I saw some gold buyer on the tube.
During Thanksgiving the subject had come up with some family member talking about selling some scrap jewelry. I told them that I thought they would get pretty abused on the payment amount.

So after I got home over the next day or so I did some research. WOW some of these places pay as low as 50% gold value!

So when we all got together for a birthday party not too long after turkey day I had some details and displays for them.

Unless you’re a hobbyist or pro like those here and elsewhere most people do not even know what an ounce of silver or gold looks like. Having grown up a coin collector and then becoming a treasure finder I’ve held these precious metals in various amounts so I had a good idea of how little gold (at these prices) it would take to make a couple hundred bucks.

Everybody was surprised at how little an ounce, ½, ¼, 1/10 of an ounce of gold is and high much these amounts are worth. I think most people would be.

So I’m thinking of becoming a broker to a refinery or even a refinery myself.
Many people would be giving up somewhere around 8%-20% if they “knew how” to buy or sell precious metals so I was thinking of just charging a simple flat 10% fee.

If you keep at this, you might consider waiting on that check from a refinery.
According to your post while you might not mind giving up 63 bucks a turn you’ve given up $630 in totality.

 

[blai745]

Hi thanks again in having interest in my scrap gold posts... this one was actually allitle old and i get about 93% hallmark now from my boss... He actually buys from coin stores/ dealers and when he has like 2000 grams he sends it to the refinery... I average out about 250 grams a week and selling it to my boss/friend I dont loose as much as I stated.. He basically makes 1.5% off me and sends it to the refinery...
And with shipping plus the refiner locks in the price whenvever the gold shipment arrives.. isnt very savy with me... plus check..etc. I guess w/e works for you is the best answer.

 

[jerseyben]

Sounds like you're doing well. I'd do the same thing. A few bucks less and cash in hand is worth the difference to me.
I do the same with silver coin. I can get a bit more if I sell on the Nucleo Exchange, but I also have to pay shipping/insurance and wait a minimum of a week and then pay for a wire transfer or wait longer for a check. USPS now requires that precious metals be sent certified mail or they won't honor insurance claims for lost shipments. I have a guy that will buy all the coin I have at a price close to what I could get online and he's local with cash.

If you don't mind me asking what is he paying for 40% halves? PM me if you feel more comfortable telling me that way.