What do Cash for Gold Stores Pay?

October 25, 2015 by  
Filed under New, Spotlight

What do Cash for Gold Stores Pay

One thing that comes up from time to time is gold jewelry.
And what do cash for gold stores pay for the pieces brought in.

If you’ve been reading along with some of my other articles you probably have some interest in treasure hunting . You may have come across a (valuable) piece of jewelry at a storage auction, estate sale or maybe while metal detecting. The day may subsequently come when you decide to sell your found treasure.

And when that time does come I always opt for the slow route which includes thorough research prior to listing it online. But for those in a hurry to sell, jewelry and gold jewelry in particular, you may be wondering just what do cash for gold stores pay.

“Let’s peel back the layers to explore the question what do cash for gold stores pay?”

Individual gold dealers pay out amounts based on different percentages but it’s still calculated on the original value or spot price – I’ll come back to gold spot price in just a minute.

Okay, you’ve found yourself a beautiful piece of gold jewelry. It’s time to learn a little about it before you go anywhere. First you need to look for the gold mark or stamp.

It’s a tiny impression or indent usually placed somewhere not easily noticed – inside the band for example. You’ll probably need a jeweler’s loupe for this or at least a magnifying glass.

For example, let’s say you have a ring and the stamp indicates it’s 14k. With a stone may require some guess work as to the weight, unless you don’t mind prying out the stone.

If you hope to sell this ring for its intrinsic value you want to keep it as pristine as possible.

This is important if the ring has any type of stone. The only way to know the true gold weight is to remove the stone.
If you have a digital scale you can weigh what you have.

This is a starting point but keep in mind your digital scale is probably set for 28 grams per ounce. The gold dealer’s scale is measuring in Troy ounces which are 31.1 grams per ounce. It may be worth picking up a small (Troy) digital scale on EBAY if you plan on doing this often.

To make things even more confusing the dealer may use the pennyweights system (DWT) A pennyweight is 1.555 grams. This is important to be aware of because it’s possible to have a less-than-honest dealer weigh your gold in pennyweights and pay you out by the gram. Which means less money for you.

So in straight talk, exactly what do cash for gold stores pay?

If you listen only to the hype you may be surprised.Remember we said your ring was 14k (14 karats). One karat equals one part : twenty four parts of pure gold. Or, ONE KARAT = 1/24 Pure Gold. Always keep in mind that 24k indicates pure gold. That number 14 indicates the purity ratio of your jewelry.

So 14k means it’s fourteen parts gold + ten parts added metals (for a total of twenty four parts). The reasons for the added metals are for color and durability. It’s important to note because it lessens the overall value.

Now we need the spot price of gold.
This is the price at any given moment in time for 24k. I use www.goldprice.org for this. This is a live price website.

I’ll also include the chart in this article. I’ll give you a quick formula as well – it’s handy to know.

Let’s assume a search for the current spot price comes back with $1000 per ounce. Your formula would look like this.. $1000 / 31.1 (ounce price divided by grams). This means your gram price is $32.15 for 24k pure gold. If your ring was 24k it would be easy to find the value. Just weigh the ring and multiply the gram weight by $32.15.

But your ring is 14k ring. So since 14k represents 58 % of 24k, you now multiply the 32.15 spot price times 58% to get the value of your 14k gram. Which is $18.65 per gram.

We’ve seen the signs and heard the ads shouting – cash for your old gold.
Seems every dealer wants your old gold. But what they don’t mention is that they pay only a fraction of it’s worth.

Let’s look at an example. The ring you weigh turns out to be ten grams. At $18.65 you have a gold value of $186.50.
But the dealer also needs to make a profit. They may pay out 60 per cent on that figure which is the melt price. So your $186.50 may only return $99.30. And they may pay even less. I’ve heard some pay out only 30 – 40 per cent of the spot price.

So what can you do?
The most obvious answer is to shop around. But also educate yourself as to what you have. Know the karat of each piece. If you can purchase a scale then do so.

If you are going to take several pieces in to be weighed make sure to separate the karat weights.

What do cash for gold stores pay might not even be a consideration if the piece of jewelry has intrinsic value. If it’s exceptional looking or a designer piece then maybe selling it yourself is the way to go.

Yes it will require research and yes it is slower but it’s also much more profitable. If you don’t think you’re up to it you might want to consider a consignment sale agreement through a trusted dealer of vintage or fine jewelry.

Best of luck and collect well.

Peter
SmokinMonkey.com

“Links in this post may be affiliate links. By clicking + purchasing I would receive a commission.”

Please follow and like us:

7 Places to find Treasure

October 7, 2015 by  
Filed under Spotlight, Treasure

7 places to find treasure

In this article I’ll go through some of the best 7 places to find treasure that I have found.

These are the type of locations that you may pass by everyday. This is a category that I live-and-breathe. We’re lucky to live in arguably one of the most affluent periods in the last 100 years. And it shows in the rate of spending taking place. The opportunities for gain are huge.

Something I’ve noticed about consumerism in general: when people find their lives on the upswing, when they’re doing well, they tend to cast aside their older items. Items they feel are out of sync with their needs. Or maybe they feel those items no longer reflect their status. Or they need to make room for new brand-name items. Items that they feel are more in line with their new position.

“These 7 places to find treasure have been distilled down over the years”.

When those same people find their situation in decline they also give-up items. Though this time it’s for reasons of practicality. They need the money, or space or both. It may even be the same brand-name items they purchased when they were on the up-swing. I’ve watched this repeat itself over and over no matter what the economy is doing.

Plain and simple.
Once you can read those two realities you will spot opportunity from a mile away. Keep in mind that all of us are in one or the other. Rarely are we in a ‘holding-pattern.’ Watch for tell-tale signs to appear.

Some are more obvious than others. If one works for you directly that’s great. And if not, examine your current situation. Think of everything you have access to. It may be an industrial site, a fairground, a zoo… or whatever. Make a note of it.

Think of your contacts, your friends and neighbours. I can guarantee you there is a golden opportunity waiting in there. It’s disguised as routine and mundane. Something you see so often that you don’t notice it anymore. Let’s see if any of this can jog your thinking.

1. Renovation Site Dumpster
A renovation site means someone is renovating their home. Whether building an addition or replacing a bathroom or maybe a kitchen. These are gold. The renovation team starts on ‘day-one’ by gutting the location.

That’s where you come in. After they leave for the day, and before the dumpster gets hauled away, you carefully check out the contents. I have found crystal doorknobs, antique door hardware, antique plaster moldings, vintage light fixtures, one-of-a-kind drawer pulls and on and on. My point here is that objects are usually small, light to carry and FREE!

NOTE:  I do not advise trespassing or outright theft. If the dumpster is fenced off you may have to apply a different strategy. My strategy is to walk up with a tray of coffees for the guys working…you can figure out the rest.

2. Industrial Dumpster
If you have an industrial area nearby chances are they use bins or dumpsters. Every business has machinery breakdowns or building repairs. Those throw-away parts end up in the dumpster, or their scrap pile. As in the first example, do your field work and go at the appropriate time.

Things like scrap machinery parts and worn gears are hugely popular. I have sold a ton of those.. literally. Most buyers want them for garden art or theme decor. Do not trespass. A lock and chain on the bin means this is off-limits. They may be selling the contents as scrap metal. Do NOT break-in.

3. Swap Meets and Flea Markets
Usually reserved for vintage auto or motorcycles but it’s possible to find tools and related gear. These can be hit-or-miss but they’re always a learning experience. Since no one is giving it away for free here you’re going to have to use common sense. Know what you are looking for and be prepared to compare prices.

The one upside to these places is that all the sellers are generally selling things from the same niche. This means competition for sales which gives you some leverage.

4. Storage Auctions
I think most of us have heard of these by now. I have never seen the huge jackpots depicted on shows like Storage Wars, but there are profits to be made. I have had a storage unit for almost as long as I can remember. Storage auctions might be something you will love.

“The most unexpected places to find treasure – don’t miss reading number 5 just below”.

If you are in the same situation give this a try – post a small notice in the common area (lobby or hallway) that let’s other tenants know you are interested in buying or trading with them. Someone on the brink of defaulting on their rent will gladly roll up their door and let you ‘cherry pick’ the best they have.

5. Offer To Remove Junk
If you have older neighbours, why not approach them with an offer to clean out their junk. Many people are thrilled at this. Years back I was cutting the lawn of an elderly neighbour whose husband had just passed.

After sweeping and putting everything away she asked if I’d mind dragging some of her late husband’s items to the curb for trash day. No problem, I thought.

When she swung open his shop door I was stunned. I was staring at some of the coolest pieces of vintage gas station memorabilia I had ever seen. I swear I briefly heard choir music – surely this was Karma rewarding me for being a thoughtful neighbour. The rest is history.

6. Second Hand Store
This is kind of like a watered-down antique store. Where an antique store is focused mainly on profits the second hand store is a little more casual. They may have a wider range of stock but at a lower profit margin – good news for you.

It’s not free but they know they have rent to pay so are more than willing to part with something quickly. Many of their items may also be consignment items. There is no gain in letting a prospect walk out without buying.

7. Garbage Night Crawl
I started doing this after the experience I detailed above in No.5. I began to wonder what was actually making it to the curb at some of these homes. So I searched out a somewhat middle to upper class neighbourhood and did my field work. It was easy enough to figure out their garbage pickup schedule.

I began to cruise their streets on the night before. Some items being put out as trash looked new. And before you say there is a stigma attached to this activity; as I drove those streets I saw a Range Rover stop ahead of me.

The driver climbed out and loaded a curbside BBQ into the back of his vehicle. He was doing the same thing as me – just with a nicer truck.

Some items I have found include tools, boxes of vintage magazines, a large record collection, retro furniture and oil paintings to name a few. And don’t assume that everything needs to be of impeccable taste. I recovered a pair of mint-condition table lamps.

They were placed curbside, both wrapped neatly in plastic. When I unwrapped them they were so hideous…they were actually hard to NOT stare at. I dusted them off and put them online. It took about 3 weeks but they recently netted a cool $160.

Pay attention to and obey all local laws and by-laws.
Remember to wear work gloves, a dust mask and safety eyewear. I also use a headband style lamp after dark. Do not trespass where it’s clearly marked as private property. If you decide to utilize any of the above strategies please do so safely.

Can you add to the 7 places to find treasure?

And if you have any additional tips or know of more than 7 places to find treasure then feel free to leave a comment.

Best of luck and collect well.

Peter
SmokinMonkey.com

“Links in this post may be affiliate links. By clicking + purchasing I would receive a commission.”

Please follow and like us: