Gold scrap question.. dealer prices

[RaptorSE]

Hello, I have a simple question, and could really use some advice/info from
anyone with knowledge on the subject.

What should you expect from a dealer for Gold scrap ( 18k, 14k, 10k) all jewelry,
as compared to the current spot price.

Im not asking the worth of actual gold in the items, but rather the Percentage "under"
spot, to expect from the "actual" pure gold weight.

Ive visited 2 different jewelers/metals buyers, and have been offered prices that equal
MUCH less than expected, like 60% of spot. Just struck me off guard and thought that was low.
Dealing with a decent amount too, like 4 oz.

Thanks.

 

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[GeorgiaPossum]

There are two pawn shops in my area that advertise that they buy gold. One outright publishes his prices, which are around 25-40% spot price, by the gram. The other is similar. I personally think they are taking advantage of unknowledgable people...

GeorgiaPossum

 

[mark.]

.try Midwest refineries.

They pay 94% of the value.

http://www.midwestrefineries.com/gold.htm

Good luck.........see ya mark

 

[jewelerdave]

A lot of places go very low because they dont want to pay for stones in rings, and in a lot of rings the alloy is under karat as for a long time it was ok to mark 13.5k as 14k etc.
Likewise solder is a lower karat and chains are often full of the stuff. Also some jewelry can be stamped incorrectly, sometimes with malice and sometimes by a stupid employee or by honest mistake.
As I do buy a lot of scrap gold and refine it to pure myself for reuse in our designs when someone is buying one has to be careful as one can make a costly mistake buy paying too much, and once you dissolve the gold its hard to tell what the culprit was. Because the chemistry does not lie, The yield you get is what you get.
When it comes to buyers if its too low...yeah watch out, but also if the offer is too high be careful too, there can be hidden fees etc. No business can make it on a couple percent margin, if it sounds too good to be true for an offer it probably is, keep in mind the refiner can fudge the outcome if they are dishonest to make what they need to in profit, and its very easy to do to one time and very occasional customers. They are in business to make money.
I will send to some refiners that I have tested as I do refining myself. And some are honest, and some do pay out 98% but you do have to pay for the refining service, and thats about $75 on small lots. At that rate it does not matter when I send in 7k to 15k in gold if I have excess its like getting 97% or more.
If its in good condition resell it, I take a lot of the junk jewelry and repair it and re polish it to look new and resell it for a much greater amount than I could get for gold content, unless I need the gold for my own uses. I also offer sizieing services and it makes bids go higher because anyone who likes it can get it! Particularly good for gem stone rings, wedding bands are best melted as people dont like to buy used ones.

 

[Jeffro]

Midwest refineries is a known, reputable dealer. I have never used them, but I have heard quite a bit about them and nothing so far has been negative.

There is also shipping to take into account.... not so much with only 4 ounces of gold, but when you're talking pounds of silver or something, it could add up with the insurance.

Forget about pawnshops, as someone already mentioned.

When I sell my silver, I sell to one of three local coin shops that I have done business with for a few years. I usually get 80% of spot for junk silver.... worth it to me to not have the hassle. Plus, they have to make a buck, too, to stay in business.

I don't worry too much about they make off me. If I get it for fifty cents and they pay me 2 bucks, I'm happy with 300% profit!

 

[RaptorSE]

Thanks Mark, Jeffro, Jeweler Dave and the rest . I will look into other options for sure.

Oh, Jeweler Dave, that is a good description of what a buyer has to think about and I
appreciate your personal experiences and input. I understand 100% and would do
the same.

However, in this case, nearly the entire lot was .750 straight from Italy and never worn. Thank God
I didnt act too quickly without thinking, as Ive come to discover a few of these pieces are worth
far more than gold content. I wondered why this one dealer wouldnt put this one necklace down. Seriously I was wanting to leave, and he acted like it was already his.. told me to not talk to
any other dealers about his prices, and to come back if anyone offered more for certain pieces,
and he would match or beat. What ? How bout make a fair offer, and quit trying to rob every
penny you can. Sheesh. The gas prices must be hurting his wallet filling up the Jaguar in the parkinglot. I know business is business, but you aint getting my business without straight-forward
honesty.

Then there was the "other" dealer ( jewelry business ). I called, they cheerily said come on over. I
asked for an estimate percentage under spot they were paying, for good material... as Ive been
getting lowballed all over the place... All of a sudden, not friendly anymore - just some snippy
blowoff words, as if uninterested. Just wanted a simple percent estimate. I thought these businesses competed to get your gold, I guess there is too much to get at a steal from the general public when prices are up. OK done ranting

Thanks again all.

 

[trevilians01]

I bought a digital scale off E-Bay and it didn't cost much. I weigh my scrap and sell back on E-Bay, most times for spot or more.

 

[fiatboy]

1 troy ounce = 20 pennyweights (dwt) = 31.1 grams

Identify what you have. Is it 10k? Dental gold? 14k?

Call around and ask them pointblank how much they pay per pennyweight for whatever it is you have. Don't accept less than a dollar to karat equivalent. For example, if you have 14k, they ought to pay at least $14 per dwt. 22k? At least $22 per dwt. That's the minimum. There should be places that offer better prices, though, if you shop around. More like $16.50 per dwt for 14k.

 

[fiatboy]

Wish I had seen this thread sooner. Good luck to everyone out there who sells scrap gold. It's a brutal game!