Shipping And Pricing Melt Gold

1&2, how do you have any clue that his weight is at all accurate? Further, if you don't know how to convert for 22k vs spot, you probably need to step back a bit and not buy gold.

FYI, 22k gold is 22/24=.91666, or 91.6% Gold, the other percentage being another metal. Now, you have to assume that 22k is in fact 22k, and that it's not some mismarked plated copper crap.

How you sell it determines your profit. My refinery wants 10 ounces of 24k return before they will remove the processing fee. The processing fee varies between refineries, as does the minimum. If you are selling to a jewelry store, expect less. I am a silversmith, I deal directly with the refinery...and note, I don't touch gold, because I haven't worked with it, and I don't know it enough to be comfortable buying it. Now...the jewelers that have worked with it, can darn near tell the alloy by holding it in their hands. That is the level of comfort I would expect myself to have before I buy something so expensive.

As for what you get, my refinery gives you 90% of spot on the day they finish processing, usually three days following drop off, in the form of a check...if I were to want to get it in materials credit, I could probably negotiate a little higher, especially if I was taking in a lot of gold. Now, I trust my refiner, have dealt with them for years on the buying side. They have always done me well, and helped me, and continue to help me...and I return the favor by referring to them, but only people that I feel will be worth their time.

For what it's worth, I got the running schpeal from a "refiner" at the coin shop a couple weeks ago. He told me he would give me 93-94% of melt, and would melt it in front of me. Thought I was big business because I told him I just dumped 10lbs of junk silver flatware at the refinery (crap I had been saving for a long time, and I traded it for eagles & fabrication stock). I felt like showering after talking to him, he told me my refinery was full of it when I told him what their capabilities were (they do carpets if they feel it's worth their time).

So, my real recommendation to you is to stay away from gold, unless you plan to get intimate with it. The fly by night gold buyers are fly by night for a reason, they don't know their product. If you plan to get intimate with it, you start at your local high end jewelry store, and handle product, and buy product, and wear product. You get used to how gold should feel and look. Then after a few years, you start buying.

As for buying sight unseen over the internet, no way. I made that mistake with silver when I was much younger. It was all stone weight, and half of it didn't even test sterling. A lesson learned!

Thank you trdhrdr007


When you look at the various computations that are on the net VS a Nationally recognized jeweler the MATH does NOT compute. Some of them are at about 60% of the spot price for 24k gold. This is why I am asking the questions.

I have NO doubts that it is 22K. It is what it is.

He does not know the weight on this as both the previous jewelers did not give him the weights. Ergo, I have asked him to buy a scale or have it weighed by a jeweler in front of him.

fwiw..this belongs to a family member who bought it in 1999.

What's the best way to ship it cross country?

OK.



Kinda odd two buyers would cheat on weight, to similar amounts. Weight is the easiest thing to verify.

3.5 (where did that number come from?)*1200=4200. 4200*.9=3780 melt.



The crux of the pricing issue is "how much do I walk out the door with", anything else is paper shuffing.

Non-plumb 22K can be 21.5K, which is roughly 90% pure for melt value. .9 times spot, before fees, profits, etc.

Silvertowne is showing 1852.45 spot, buy 22K @50.00dwt. Using your original 1200 spot, they'd pay 32.39 dwt, or 2267.30



Big coin dealers trading in PM are typically top buyers, but that doesn't mean the shop down the street. Pawn shops are generally low, as are jewelers. We used to pay other dealers 90% of melt, and bought a lot, so obviously, they were paying less.



Registered mail, one box. Worked for the hope diamond, will work for a few ounces of scrap metal. $1200 isn't safety, it's paranoia.

Not sure I'm clear where different locations enters the picture. He shipping to you, you shipping to a higher buyer? What keeps him from finding your buyer and shipping to them? Usually that comes from a long-term relationship and volume, not buying the same 3.5 ounces from either of you?



And maggot-friers, test kits, perhaps a license, etc.

Scale is easy, Harbor Freight has several suitable under $20, or any of those Chinese import places that sell to flea market dealers.

A jeweler advertises they buy gold, silver and diamonds. The wouldn't quote on a Mex 2.5 peso, and despite claiming they pay 30% more, offered the lowest price of five places I took stuff to.

Their radio ad where they buy "anything gold or silver" "like this single gold earring?" "yes" "how about these gold cufflinks?" "yes" "this gold tooth" "ew, no, what are you doing with that?"

Well, gee, it's gold, stupid, you said you bought gold!

So you do a quick acid test at yard sales, thrift stores and antique malls? Seriously, how do you do it?

I can buy a 22k stamp for 14.99 shipped...I can make anything 22k. If he isn't experienced in the density, feel, craftsmanship (anything made from 22k should have a certain level of craftsmanship), etc...he's bound to lose, and in gold, you can lose big.

You didn't say that this was a family purchase. In that case, if he's serious...order a scale and have it drop shipped to the relative.

I pick up stuff at thrift stores all the time. I dont' see stuff at yard sales very often (lots of costume, but not many PM's) Pawn shops tend to be priced at, at least melt. Antique stores usually price higher than melt (in my experience).

I still say that best bet for selling for small amounts is the jewelry shop, but you have to know what it's worth...call around til you find the best price, tell them you'll allow them to acid test in front of you. Refineries are also a great place to sell, if you've got enough. Like I said, less than 10 troy ounces and you pay a processing fee (it's only 50 bucks, so if you are buying an ounce, you are only losing about 3% to that fee). Know that your jewelry store is getting at least 90% of melt and is going to want to make money on the deal.

As for your calculation...

22k = approx 90%, spot x 90% x weight in troy ounces = spot value, Now....if your buyer will pay you 80%, then multiply spot value X 0.8 and anything less that you pay for the piece is your profit.

Those are legitimate questions. I prefer an electronic tester that uses a gel that contains acid. It's been very reliable for me & is less messy. I don't test every item I buy. It all depends on the price. If I'm at a yard sale & see a bracelet marked 14K that looks & feels right for a quarter I'll buy it without testing. If I come across an item priced close to melt you can bet I test before I buy.

Over the last 2 years I've been burned on a non-tested item many times. I don't have an exact number but figure I've spent around $40-50 on items that weren't what I thought they were. I was also burned once on a fraternity pin I tested that had unusually heavy plate. That cost me $10.




You can put any sort of stamp on any item you want. That doesn't mean it will fool a legitimate test.




I've tested items that I know for a fact to have come from the high end local jewelry store.....the store with the reputation for selling only the best. There have been pieces that tested way under karat, & even a few that were outright fakes. My point is irregardless of the source you don't know what it is unless you personally test. If there were 2 jewelers willing to make offers I'd bet it was ok but if I was laying out the cash I'd still test.

THIS IS NOT A RECOMMENDATION. I've never used these people & only know what I've read online about them. Having said that check out usgoldbuyers.com. I believe they are based in New York & are offering $78 per dwt on 22K gold as I type this. If you live in a large enough city you should be able to get close to that figure.

But you can't value melt quantity without knowing the true quality of the gold, see comments by trdhrdr007. Like I said, I can buy a 22k stamp for under 20 bucks, I'm not saying I can fool a test...but I can fool an untrained eye.

Maybe I am making too many assumptions...I have been involved in the antiquities market for my whole life (literally). Too many genuine family heirlooms that turned out to be cheap reproductions or forgeries with fancy stories from great uncles who didn't intend to cause harm. You are talking about a transaction that is a sizeable amount of money, not something I would want to go in to on faith, especially with a relative.




Do you have a link? My parents are antique dealers...I taught them the acid method just so they could decide if things were worth selling as antiques, or as melt. This sounds somewhat idiot proof. (not callin my parents idiots, but hey, he did stick his hand in the snowblower...and I've seen his hands after testing a load of silver)

I use the Tri-Electronics GT-3000 & so far(18 months) haven't had any problems. It's not foolproof but it's close if you follow the directions closely. A heavily plated item can test as gold if you aren't careful....I generally scratch or file an inconspicuos area of the item & make sure I apply the gel there. You have to keep the gel refridgerated to make it last.

I've heard good things about the Mizar series of testers but haven't used one.