[BenchTube] Fools gold?, Cash for Gold

For any Orchidians who missed this broadcast…here’s a pretty good
expose of the underbelly of the cash-for-gold business. Note: 20% is
the admitted base percentage.

Watch Video:
Runtime: 7m 33s



Amazing. This is along the lines of many questions I have concerning
how to cash in on old gold. Better to send old chains, rings,
bracelets to a reputable refiner or do jewelry stores desire to
purchase these items for resale? In the case of refineries is there
any value in gold fill? If a piece is not hallmarked will it be
tested or discarded? How should pieces be seperated? is percentage
returned dependent on total weight sent in to refinery?

I’ve been procrastinating on this for some time now and want to just
do it.

Thanks Orchid,


well… first off, people are offering to buy your gold because they
want to make money off of the gold they purchase.

In my case i am trying to keep my production cost down by purchasing
scrap and having it refined then rekarating into usable material for
jewelry. Most managers of larger operations dont do things this way
because they are only interested in immediate profit.

#2 would be this if it has gold on it save it for refining if it is
gold filled you just need alot more of it to see the results. i even
save my mop water and allow it to settle to recover what i can from
it. The recent national geographic article on gold has one factory
processing its sewage and human waste for trace amounts of gold.

#3 dont put your gold into an envelope and drop it in the mail i can
get lost "wink " biggest of all be aware that it costs money to
recover gold and the good people at the refinery need thier jobs so
you will have to pay somthing to get a check or get your gold back.

Call your refiner and they will tell you what they like to have from
thier customers. if not sending off and you only have a small amount
you are just as well off to shop around your area for who pays the
highest for scrap …

Ask them what percentage of spot they pay for gold then do the
math… spot X percent of gold conent divided by amount of percent
they pay divided by the unit price either pennywieghts 20 or grams
31.1 X amount of scrap you are selling - goo

Most people instinctively spot it as a bad deal, but there are still
enough suckers out there to make it work for the advertisers. The
thing I like about these ads is that they are driving some customers
to my shop without me having to pay a cent. I suppose that this is
probably true for most of us. The usual reaction to these TV ads that
I am hearing is, “I have some gold I would like to sell, but just
sticking it in an envelope and sending it to someone I don’t know is
insane.” So they come to me instead, because they know me. If a
customer wants to use the gold for store credit I give them a much
better price than if they just want a check, so it is giving me a way
to do some extra business. I would guess that the TV ads are
generating more scrap gold sales for local jewelers than they are for
the guys running them, because they make us look so much better by
comparison. But the ads are making people think about the the gold
they have.

I work old gold in a different way. I will use the old gold to make
something new if it has sentimental value, which it often does. Or I
will refine it to bring it all to a correct karatage. But I never
buy any excess gold or give store credit. I melt it into a bar and
give it back to my customer. That little bar makes my customer come
back, normally with more old gold to have something else made. And if
anything is left, I give it back again. It amazes me how much return
business that little bar generates for me.