Scrap gold

UffDa

UffDa

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Joined
Sep 11, 1999
Messages
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A few days ago my wife showed me a 14K gold ring that belonged to her mother. We used the small diamonds from it in her wedding and engagement rings, so I'm assuming that it would be considered scrap gold even though it is in nice condition. It weighs 7.2 gm. or 4.63 DWT. Online calculators show the scrap value at about $135 + or -.

Yesterday, she took it to the mall and showed it to a lady in a jewelry store. She gave my wife $60 for it. I told my wife that she got screwed, so she went back today and got the ring back. She took it to another jeweler and they offered $87.50 for it.

Has anyone sold some scrap gold recently? If an online dealer shows the value at $135, is that what they pay or something less? This is the first time that we have tried to sell something like this. Any suggestions?

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Well, of course they want to make $$$ from it, too.

But when you looked up the value, did you take into account that 14 K gold is only a little more than 1/2 actual gold?
 
I sold some old and silver about a year ago and I got around $85.00 or 90.00 for one ring then,gold was less than $1000/ounce at the time,I haven't checked the price lately but I know,it was around $1200 a couple weeks ago,but I think it did come down some since.One thing you need to remember,when you sell gold to a jeweler,they are acting as a middle man,the price that your seeing when you hear that $1000 or $1200 is an end price,the middle man that buys your gold is going to turn around and sell it again so you have to shop around some to find out who's paying the most.
 
joe-bob said:
Well, of course they want to make $$$ from it, too.

But when you looked up the value, did you take into account that 14 K gold is only a little more than 1/2 actual gold?
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Yes, there are charts that calculate the price based on purity. The scrap value is $134. I assumed that anyone buying it would expect to make a profit, but 110% is a bit much.

It's not the money, it's the principle of the thing........OK, it's the money.:D
 
UffDa said:
It's not the money, it's the principle of the thing........OK, it's the money.:D
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You also need to remember you're dealing with people who spend two months every year selling their stuff at 70% off and never do end up closing the doors.
 
Jewelers mark up are about 7x, if my sources are correct. They will buy the scrap at low ball, thinking you know nothing about it. Shop around, it is all you can do. Make sure you get the best price for your metal.
 
cj65 said:
Jewelers mark up are about 7x, if my sources are correct. They will buy the scrap at low ball, thinking you know nothing about it. Shop around, it is all you can do. Make sure you get the best price for your metal.
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I don't know if it's 7X. It used to be 4 to 5 times wholesale cost. The actual value of the item is much less then that.

My dad was an auto mechanic. One Christmas a customer gave him a nice gold Tissot watch. The price tag said $400. My dad told the guy that he couldn't accept a gift like that. The customer laughed and told my dad that he was a jewelry jobber and the watch cost him about $25. (1950s)
 
I have read that the mail order services that buy old jewelry are major rip-offs.

If I had old gold jewelry I would hang onto it. As the dollar plummets in value the gold will not.
 
Just like anything else,there are reputable dealers and people that are out to make a fast buck.You've got to shop around and don't be afraid to ask what a dealer is paying,they don't all pay the same.I usually sell to a guy that regularly buys and sells coins,he's honest,tests and weights the stuff then shows you his calculations and what he's paying,most just sort it and weight it and then tell you what it's worth.As far as the selling price of gold,my OL goes to a buyers market for the Bridal store that she works for,she usually buys a couple pieces when she's there at wholesale prices.:thumbup:;)
 
UffDa said:
A few days ago my wife showed me a 14K gold ring that belonged to her mother. We used the small diamonds from it in her wedding and engagement rings, so I'm assuming that it would be considered scrap gold even though it is in nice condition. It weighs 7.2 gm. or 4.63 DWT. Online calculators show the scrap value at about $135 + or -.

Yesterday, she took it to the mall and showed it to a lady in a jewelry store. She gave my wife $60 for it. I told my wife that she got screwed, so she went back today and got the ring back. She took it to another jeweler and they offered $87.50 for it.

Has anyone sold some scrap gold recently? If an online dealer shows the value at $135, is that what they pay or something less? This is the first time that we have tried to sell something like this. Any suggestions?

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The worst deal fo selling scrap gold is those mail-in envelopes. They would probably have sent you a check for around $30. The scrap metal industry is like any other - some money has to stick to everyone's hand who handles the material. I guess the lesson is to shop it around for the best price.
 
The $135 figure has to be the full melt value.

The $87.50 sounds pretty close to what I'd expect. That's $18.90 per DWT.

There are 20 DWT in a Troy Ounce. At $1075 gold* that would be $53.75 per DWT if it was pure gold. 14k is 58.333% gold so that works out to $31.35 per DWT at full value.

The buyer isn't going to make $12.45 per DWT in most cases. They usually sell to a scrap buyer rather than to the end user. In reality they're probably making $5 per DWT tops when they sell so they'd see no more than a $23 profit on that ring and I would guess it would actually be under $20.


*I know it's higher but the buyer has to figure some wiggle room in. They may not sell to their buyer for a while and the price fluctuates.
 
Yeah, you're lucky to get about half of what it's "Really" worth. I took some old gold dental work, and some broken rings and chains, and a few small platinum pieces, and made only $120. Granted, it's $120 that I would never have seen, otherwise, but it stung a little, knowing that the value of gold is actually much higher.

If there is ANY sentimental value in a piece, at all, KEEP IT!

You'll be sad, otherwise.

Daniel
 
as said the scrap value of gold is pretty pityful...I tend to keep all my scrap gold, and when i had my wife and mine wedding rings made I bought about 20 old wedding bands from a pawn shop for about $300. We went with .375 aka 9k though with the gold we bought...and that is easy to find in any pawn shop.

I'd personally keep it, maybe even buy some more 14k gold cheap rings and have it smelted into something else...that much gold would make a nice knife lanyard bead :D
 
Before my knifemaking days I was a jeweler. This happens because the mark up at jewelry retailers is over 300%. Example: Last week I heard an ad on the radio from a major jewelry chain. x ring normally $1,600.00 now on sale for $499.99 WTF! Even at that price they are still making $. See what I mean?
Next time you want to sell some scrap gold, try to have quite a bit at least 100 pennyweights of gold, get a gold quote and visit a local refinery (most big cities have them (NY, L.A, Miami) Most of the Cash for Gold over the mail will screw you big time also. Once you send it it's gone and you are at their mercy. In person you can always say no thanks.
 
knarfeng said:
I have read that the mail order services that buy old jewelry are major rip-offs.

If I had old gold jewelry I would hang onto it. As the dollar plummets in value the gold will not.
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I've read this also... IIRC, the mail order joints at best, will give you about 14% of market value for "scrap" gold (the average is about 11%).

Rip off indeed!
 
Here's a place I would be willing to mail my stuff into. I've used them for small coin purchases in the past, and I've checked their website almost daily for Spot Gold prices for years, and they always seem to have things well explained, and fair. It's probably because they focus on large quantity dealers and investment folks, rather than folks like us. They do say that any amount is acceptable, though. I like how they state EXACTLY what their buying prices are, and you can know ahead of time EXACTLY how much you will get.

http://www.goldmastersusa.com/purchasing/precious_metals_buying_prices.asp

No, this is not SPAM, as I have no vested interest in this company, and I'm just trying to help a brother out.:D
 
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