Jewelry/collector premium for nuggets gone away?

[Highmountain]

I was talking to a gold buy a few days ago and was surprised when he told me there's no longer a jeweler/collector market for nuggets. Said he'd pay the same [80% spot and no refining fee] for nuggets, fine gold, ingots, whatever. No preference whatever.

But during the conversation he also expressed a sentiment that I've seen on these threads.... he's feeling a lot better about silver than gold and he'd like buying it a lot better. He's looking at what he believes is a big drop in gold tomorrow and his opinion is the whole reason for current gold prices being what they are is the result of China going off the gold standard, rather than economic insecurity/instability.

Silver, he believes, is going to remain high.

The nugget premium news I considered something of a shame. Bet there are some pretty ones going into the fire.

Jack

 

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[lgadbois]

The gold buyer is trying to purchase your gold at the lowest price possible. Many gold buyers will tell sellers that their gold is 14K, and will offer 25% to 50% purchase price. If he sells all of his gold for recycling, the nuggets will be melted.

The best way to sell placer gold is to sell it yourself. Packaged in small sample bottles, the gold can often be sold for over spot value at jewelry and gems shows, flea markets, and tourist locations. Large nuggets command a premium over the spot prices because of their jewelry appeal. Depending on the size and shape of the nugget, some may be worth more than double the spot price.

 

[Highmountain]

Thanks for the info about the premiums on nuggets. The guy was right about the drop today, though. That spike was fairly sharp for a while and it appears it might have started a gradual down-trend.

No way of guessing.

Gracias
Jack

 

[jewelerdave]

I have had the same as a buyer/refiner.
Some nuggets will always carry a premium, some will not. Smaller flakes and fines are coming out of the woodwork. With all the new interest in prospecting due to the higher prices a couple things are happening.
1. More Gold is going to be found because more are looking.
2. More Gold that has been sitting in stashes is coming out because people are selling.

Also with the price swings, all gold buyers are being very cautious as the prices are so variable. When the price can swing up to %10 up or down in a few short days. Buying prices will go lower.

Placer gold varies in purity and any experienced gold buyer will know that, Just like any experienced gold karat scrap buyer will know that more 14k gold is not 58% pure but more commonly 53 to 55

With the abundance of gold dust and small nuggets out there yes premiums will disappear, and yes, A lot of nugget gold has been getting refined/melted.

A good shaped nugget will get more than spot always, but the plain jane types and more common gold is just melt value. When the supply is up it takes some pretty fantastic gold specimens to hold a collectors premium. Premiums also depend on location and size as well.

 

[Highmountain]

I have had the same as a buyer/refiner.
Some nuggets will always carry a premium, some will not. Smaller flakes and fines are coming out of the woodwork. With all the new interest in prospecting due to the higher prices a couple things are happening.
1. More Gold is going to be found because more are looking.
2. More Gold that has been sitting in stashes is coming out because people are selling.

Also with the price swings, all gold buyers are being very cautious as the prices are so variable. When the price can swing up to %10 up or down in a few short days. Buying prices will go lower.

Placer gold varies in purity and any experienced gold buyer will know that, Just like any experienced gold karat scrap buyer will know that more 14k gold is not 58% pure but more commonly 53 to 55

With the abundance of gold dust and small nuggets out there yes premiums will disappear, and yes, A lot of nugget gold has been getting refined/melted.

A good shaped nugget will get more than spot always, but the plain jane types and more common gold is just melt value. When the supply is up it takes some pretty fantastic gold specimens to hold a collectors premium. Premiums also depend on location and size as well.

Good info Dave. I'm obliged.

Another question about nuggets. Is there anything concerning the premiums relative to nugget-size a person might wish to know. Most particularly concerning those substantially larger than is generally considered 'normal'?

Gracias,
Jack

 

[jewelerdave]

depends on the application. For jewelry some nuggets will carry a premium if they are suitable for use in jewelry. The sizes can range, flakes can make good inlay pieces and chain links. larger pieces make good pendants or collectibles.

There is more out there than can be used as small curiosity sales, So anything under a gram or two is usually melted.
dust, just melt, amalgam coated gold, melt, gold with ugly rocks in it, melt.

Good crystalline pieces. Sell for a premium. larger nuggets, also can get a premium depending on location and demand.

There are no rules per say when it comes to natural gold and mineral specimens. What makes a ten thousand dollar crystal or formation as to a $5 rock shop rock is buyer demand beauty etc.

Obviously get what you can get but be realistic as to what the market will give.