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Converting gold to cash


#1

I have some refining to do but I don’t want to cash out yet. I
thought if I took the settlement in 24kt it would be faster when I
was ready to sell it back to the refiner. My refiner said that if I
took the metal in 24kt that I’d still have to wait in line with all
the other people refining scrap which right now is over two weeks.
If gold goes back up the wait could be even longer. I don’t want to
have to wait that long to cash out once I decide to do it.

Any advice on the fastest and most cost efficient way to convert
gold to cash when I’m ready?

Larry


#2

Hi Larry,

I’ve been very happy with David H. Fell Co., www.dhfco.com They
offer a 2 day express service with very reasonable rates for refining
services. You can then place the settlement amount into a "vault"
account which allows you to cash out when you want to sell or take
the settlement amount in materials. I’ve worked with them for years
and never questioned a refine settlement. Hope this helps. No
personal gain here, just a satisfied customer.

Best.
Britt
www.BrittAndersonJewelry.com


#3

Larry-- Why would you want 24K? Raw bullion is not very liquid
(buyers need proof that it’s 24K, so you have to assay it) and,
Imhop, making your own gold alloys isn’t time or cost efficient, and
can lead to quality issues if you’re not careful. Fine gold is only
easy to sell when it is in such forms as coins, i.e. American
Eagles, Maple Leafs, Pandas, Kruggerands, or Credit Suisse bars.

As a working jeweler, the easiest way for me is to have my refining
put into a vault account. My refiner (David Fell) does the work,
sends a settlement statement that gives me a credit to my vault
account for the fine gold yield less his charges. I can draw on that
vault account at any time with just a phone call, taking any portion
of the gold in the account as cash, fine gold or the gold alloys I
use in my business. For cash, he sends a check the next day based on
that days market. Great arrangement-- for high grade scrap, I get a
settlement in two days (sweeps and such take longer). Very easy to
time the market this way.

Jim
www.mardonjewelers.com


#4

Hi Larry,

Gold coins would probably be your best bet if your objective is to
play the market and you want to hold the actual metal in your hands.
Getting 24k grain back is a great option if you can use it to make
jewelry, but not so great if you want to hold it and be able to cash
it out quickly. When sending 24k grain in to a refiner for a cash
settlement, they have to handle it just like it’s karated scrap. They
aren’t going to pay you until they have assayed it and know exactly
what they’re buying. You might be able to sell 24k grain to a
manufacturing jeweler or trade shop, but they will want a
significantly better price than market. If they don’t know you, they
will likely be suspicious and will only buy it far below market value
(if at all). Coins on the other hand are always convertible, costing
slightly above market, but selling for somewhat less than market. In
any event, you will still have to find a willing buyer, and at a
perceived market peak, that may be difficult. Also, the more times
your gold changes hands and/or form, the more it’s going to cost you.

Another (and possibly better) way to play the market if you are
betting that gold hasn’t peaked yet is to refine your scrap for a
cash settlement and purchase shares in a gold stock (check out the
Dillon Gage and Kitco websites for ideas). If you have a brokerage
account you can sell it in seconds, although it will still cost you
the transaction fees and you’ll have to wait a week or so for a
settlement check.

As a rule of thumb, the faster you want or need to sell gold (or
anything else for that matter), the less you’re going get for it.
Just like everything else in life, there’s no free lunch.

Dave


#5

47th St. Try Roizin Refining at 32-34 West 47th. The number is 212
391 0913. I believe they pay on the London fix from the previous day
but you should check. I would suggest going in with your platinum or
gold already melted into a chunk. They will assay it and pay you
accordingly on the spot.


#6

Let me suggest PMWest, and Daniel Ballard. They are intrinsically
fair and have a very moderate refining fee. You may then negotiate
the settlement with several options.

When purchasing or taking your value in Gold Coins, make sure you
are getting one ounce of 24K, not all Gold Coins are created equal.
Do your homework.

Hugs,
Terrie

Dan Ballard has been a wonderful participant on Orchid, always
helpful.


#7
Let me suggest PMWest, and Daniel Ballard. They are intrinsically
fair and have a very moderate refining fee. 

This subject comes up every so often. Let me suggest a simple way of
dealing with that issue irrespective of the refiner you choose to do
business with.

Melt you scrap in you shop by yourself and sent to assay it. Fax the
copy of the assay to a refiner an ask if he can guaranty the recovery
indicated in the assay and what would he charge.

Now you have basis for comparison and you can shop around instead of
relying of recommendations.

The best place to buy gold coins in in commercial bank specializing
in this type of service, or even better primary FOREX dealer.

Leonid Surpin
www.studioarete.com