Gold Buy Golden Rule Spotlights How Consumers Lose Money Selling Scrap Gold and Silver
NEW YORK, April 12, 2012 /PRNewswire/ -- Sharon Noble, president of Gold Buy Golden Rule, warns the first place consumers lose money is on the weight of their unwanted scrap gold jewelry. She advises consumers to weigh their scrap gold or silver jewelry on their own scale.
Sharon related that a customer recently complained a jeweler weighed a 153 gram 14K gold charm bracelet and said it was 122 grams. That's 31% less than the true weight. She pointed out a gram of 14K scrap gold is worth about $21 today, so the customer was being short changed $651 on the 31 grams. She also noted the charm bracelet scrap gold was worth $3,213. Sharon suggests consumers buy a gram scale online for $15 or use a kitchen or diet scale and be prepared by weighing the items themselves.
She pointed out there are just a few different markings for gold, silver, and platinum; research them on the Internet. (Example: 10K; 14K; 925 Sterling; 900 Platinum, etc.) Consumers become more knowledgeable in just a few minutes.
The prepared consumer makes a list of their items by weight, markings, and computes the value of each. They visit gold buying websites with calculators for scrap gold, silver, platinum, and with daily price quotes. The following websites provide a precise value for the consumers' items online without hearing a sales pitch. Visit these websites and search for other gold buying websites with calculators.
Sharon makes another point: If you chose to bring your valuables to a local jeweler, call first and ask what they pay per gram for the karat scrap gold or type of silver you have. If the consumer visits the jeweler first, they know the consumer invested time and energy in making the trip, and this can work against the consumer. If the jeweler is sincere, they'll provide the consumer with price information over the phone, just as some websites provide you with current information. With price comparisons, you have power.
She cautions when consumers see advertisements offering to pay 97%, 98%, or 99% for your scrap gold; she asks, "How can they earn a profit?" Refining expenses and refining melt losses generally run about 4%, then there's overhead and price fluctuation risk. If a consumer's items are worth $3,000 and the gold buyer pays you 97%, that's $90 gross profit. The gold buyer's expenses are easily 8% to 10%. They would be out of business in short order paying 97%. She suggest consumers be very cautious with these offers.
Last, but not least, Sharon reminds consumers it's a good time to cash in your unwanted gold, silver, and platinum items, pointing to the attractive prices currently being offered and notes when prices fall, they have a tendency to fall dramatically.
SOURCE GBGR, Inc.Back to top