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How much do you pay for used gold?


#1

Hi All,

I would like to know how much you pay for used gold, not necessary scrap gold.
as i do have a jewelry shop and lately start to come people that want to sell their gold, i usually offer 18/19 euro per gr of 18KT, but the make a strange face, and they prefer not sell it.

So i wonder if my offer is so out of the market? how much you guys paying?

Adriano


#2

Adriano- We just pay what everyone else here in Portland does. We call our
local refiner and find out what they are paying for scrap. We then deduct
10% to pay for our time testing and inspecting the piece and the time and
gas to get it to the refiner.
If it is an important piece by like say Cartier we then take it to a
jewelry estate broker. If the broker can sell it we take 10%. If it has
diamonds and fine gems we take it to our local estate jewelers and ask
them what they’d pay for it.
Hope this helps.
Have fun and make lots of jewelry.
-Jo Haemer
www.timothywgreen.com


#3

It’s easier to talk about this in terms of % of market value. That’s how
most do it where I’m from. 50%, 60% 70% of market… If you’re getting
92-95% from the refiner… what profit do you want to make…


#4

Used gold is scrap gold unless it is something I can easily resell with no work, or gold coins. I pay more for coins or something I can easily resell. Otherwise it is 50-65% of spot and diamonds under 20 points I don’t pay for. I will remove them and give them to the seller, but I charge for that. Ben


#5

That’s what we do too here in rural Tennessee. Five years ago we did a booming business in buying scrap gold. It is now down a trickle.
Thanks for your post.
Dale Pavatte
Diamonds For You
Decherd, Tennessee


#6

We use a spreadsheet that calculates the price with the market. Someone
good with math can come up with what the percentage is but I’m merely a
jeweler and not gifted in the arts of exact number. I do things by feel,
and it feels about right.


#7

Now that reply tells us absolutely nothing usable.

Jerry in Kodiak


#8

My Dad used to buy a lot of gold when it was made available to him. He had a process that seemed complicated but as I never buy gold I don’t use it.

First he’d figure the value an ounce per karat based on the price that day. If a karat was worth $10.00 then 14k was worth $140.00 per ounce Troy.

Then he broke down the value in penny weights. Weighed the ring or earrings our what ever to get the golds worth. Then it got hard. Was he buying for scrap or for resale.

If he bought for resale he paid what he considered a wholesale price. Often as not he’d sell on consignment and take a percentage.

If he bought for scrap he would often pay 2/3 the value that day. And then he’d read the market and follow the bubble. He looked at gold price speculating as gambling.

One day shortly before he died we talked of all the gold mania. He felt that the way people were speculating gold scrap on daily basis would eventually take the craft Gold Smiths right out of the market by pricing gold right out of reach.

But then he never saw a sustained gold price above $1000. 00 per ounce.

I keep no gold pieces in stock but I will build to order.

I only use gold supplied from H & S or @RioGrande . I don’t have to refine it or prove it’s karat value.

Now Pawnshops buy gold or silver only for scrap. They keep things for 7 days as the law requires in my area and then it goes to melt. It doesn’t matter if it’s Grandmothers spoons or your sister’s gold broach.

Don Meixner.


#9

When I gave a setting class in a city in Jamaica the shop owner took in gold. How much in a month did he refine?.. how about 1.5 kilo’s? I saw the melted ‘brick’ for myself. I asked him how often do you do this??. “every month!” was his answer. He never asked where the gold came from, nor did he want to know!!

Gerry Lewy!


#10

Lets give him a real world real life answer. Today gold is, according to Kitco, $1259.00 per troy ounce. Divide by 20, that gives a price of $62.95 per dwt. For 14k multiply by 57% 10k 40%. Why not 58.5% and 41% you ask? Because gold karat often runs a little low. So $62.95 times 57% is $35.88. Now the refinery is going to pay you somewhere around 96% of that. Just depends on who you use. $35.88 times 96% is $34.44. That is what you can get for your 14k gold today, it changes hourly. I pay half that and I buy the stones and diamonds. So $34.44 divided by 2 is $17.22 per dwt. I would probably round that down to $17. If a customer is trading there gold in for a purchase or using it to pay for a custom design I give them 35 % more. Which after expenses is what I figure I actually make on it. $23 per Dwt.
What I pay for diamonds is a whole other discussion. Colored stones I pay around 25% of what my best guess is of what I can get out of it.


#11

Pretty much, exactly what we are doing. However, to make it a bit easier, we’ve created a spreadsheet chart for the market at $25 increments, $5 for silver. It’s worked out well for the past 5 or so years and has cut down on the amount of time and errors committed to each transaction.

We’ve also nearly eliminated traffic for stolen goods. We require a photo id and write a check for the goods. Then, we take a digital photo of all of the items, check, id and any notes of metal/stone weights.


#12

When I take in scrap gold, I pay 75% of market price.
For example, today gold is trading at around $1250 US/oz
Works out to about Euro 36/g of 24 kt
or EUR 27/g for 18 kt
75% of that would be about EUR 20 per gram
Kitco has an app called Scrap It. That can help with these calculations
Its free in the Google Play Store

Milt
Calgary Canada, where it is snowing this morning!


#13

At $1259 divide by 24, that is the price per kt, $54.46 times 14kt gives the price per ounce, divide by gram or dwt. For 18kt, $54.46 times 18 gives price for an ounce of 18kt.
I pay 70% of spot price.
On a large quantity I charge 10% of the total paid out after refining.


#14

Hoover and Strong has a scrap value calculator on their website. You need an account to get at it. It allows you to define your desire profit level…Rob


#15

I just downloaded the Kitco scrap it app. It looks like exactly what I have always wanted. Lets me adjust all the parameters, just plug in the weight.


#16

That’s pretty much how I would do it John Wade.Real world.


#17

The Kitco App works really well, but note that it does not take into account refining costs, which can be significant if the total amount of scrap gold is small.

Milt
Calgary Canada


#18

NTR which became Elemetal pays out 98% on gold regardless of quantity for scrap gold.


#19

My buyer doesn’t charge me a refining fee and pays in cash.


#20

John Wade, what % of spot does your gold buyer pay?