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

blai745

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May 5, 2010
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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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Sandman

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Jewelry manufacturers are required by law to hallmark their gold items at half a karet higher so something marked at 14 kt is really 13.5 kt. Midwest Refineries melt down the gold you ship them and then test it for purity, and weigh it. ARA does the same. Midwest pays you 96% of the spot price. While ARA pays you 98% and they will return the stones and anything you sent that wasn't gold. Not all 14 kt. is 13.5 as some is Plum or true 14 kt.

So if your buyer is paying you 92% of 13.5 for 14 kt stuff I think you are losing to much money. But you are being paid in cash, up front and save the small shipping cost. I don't insure my gold when shipped but I do send it so they have to sign for it with photos of the scale and weight I sent. I ok the agreed price before the melt with ARA.
 

bigscoop

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The difference may not sound like much until you figure that difference for the whole year...or two of three years. On down the road that's quite a pile of extra cash that could possibly be turned over a number of times for even more profit.
 

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blai745

blai745

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Sandman said:
Jewelry manufacturers are required by law to hallmark their gold items at half a karet higher so something marked at 14 kt is really 13.5 kt. Midwest Refineries melt down the gold you ship them and then test it for purity, and weigh it. ARA does the same. Midwest pays you 96% of the spot price. While ARA pays you 98% and they will return the stones and anything you sent that wasn't gold. Not all 14 kt. is 13.5 as some is Plum or true 14 kt.

So if your buyer is paying you 92% of 13.5 for 14 kt stuff I think you are losing to much money. But you are being paid in cash, up front and save the small shipping cost. I don't insure my gold when shipped but I do send it so they have to sign for it with photos of the scale and weight I sent. I ok the agreed price before the melt with ARA.
My buyer is paying me 92% of full 14k(.583) as you can see in the equation and its true that over time some of that small
amount does add time but is every time you ship it to the refiner theres still that little difference in the price of what you calculated
and there calculation.....
 

bigscoop

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I ship flat rate (USPS small box $4.95 up to 4lbs.) and I insure & track, cost about $10.00. The turnaround time is about a week, depending on what day I shipped. Most refineries offer a variety of payment options, even direct deposit. I found them to be very professional and trustworthy, but like Sandman I always include an inventory sheet and a letter with any concerns or details about the shipment. But you're going to leave a paper trail VS the cash transactions with your jeweler friend, though I'm betting he keeps good records of all his transactions anyway? Just one of those things you have to decide for yourself.
 

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blai745

blai745

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bigscoop said:
I ship flat rate (USPS small box $4.95 up to 4lbs.) and I insure & track, cost about $10.00. The turnaround time is about a week, depending on what day I shipped. Most refineries offer a variety of payment options, even direct deposit. I found them to be very professional and trustworthy, but like Sandman I always include an inventory sheet and a letter with any concerns or details about the shipment. But you're going to leave a paper trail VS the cash transactions with your jeweler friend, though I'm betting he keeps good records of all his transactions anyway? Just one of those things you have to decide for yourself.
I dont leave a paper trail becuase we document our transaction face to face. And I know exactly what I put in and what I get out of the gold. Thanks for the info though looks like your ontop with your gold.
 

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blai745

blai745

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well I just asked for a raise last week and I got it.. so now its 93% of hallmark
Maybe its becuase I pulled in a hefty 350 grams of Gold
 

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