Sell gold & Buy gold – some insights into the gold buying business
November 1st, 2009Every day it seems there is a new company with flashy ads advertising their service to buy old, unwanted gold and jewelry. You know the ones with happy people holding a lot of cash in their hands. This is a great image to sell a service but how much did they get paid per unit of gold? If you are considering one of these services, you will find that doing a little bit of research will pay off. Because I run a gold buying service, I have some insight and a few simple suggestions I would like to share.
First, it pays to shop around to find both the best price and the best service. Hectic lifestyles play havoc with schedules, so find the service that best accommodates your needs. Comparing services can be a real eye-opener. My customers demand an option other than driving to a counter operation in a seedy part of town with thousands of dollars worth of gold in their pocket. Come see us in the World Exchange Plaza, 45 O’Connor Street or ask for an in-home or your office consultation. A typical office visit, where say 10 items are to be tested and weighed, can take only a few minutes. Before I meet a client we estimate the value of the gold being sold. This involves knowing the weight and Karat of the items. With expectations understood, the verification and exchange tends to be a very comfortable experience. Choosing your environment and appointment time goes a long way toward making you feel relaxed and safe.
When it comes to comparing prices, the Internet is a perfect tool. Here in Ottawa, just Google search “cash for gold Ottawa”, and check out the sites. The open and up-front businesses post the prices they pay on their website. If they do not, the seller should be wary. Also, take note of the units for which the prices are quoted. Often I wonder, what is the motivation for using pennyweights as the unit of measure? Most people that I meet are knowledgeable and comfortable using grams. (By the way, a pennyweight is 1/20 of a troy ounce, or 1.55 grams.)
You may also wish to consider selling to a Pawn shop or Jewelry store. On the positive side you are dealing with an established business but both tend to have much higher overhead costs. The ones in the malls have a high rent and the others have high security costs. Both the selling and buying operations pay for that overhead. On the selling side, a gold item is marked up 3 to 5 times the gold value. The mark-up on gems can be more than twice that of gold. If your item can be resold as a piece of jewelry, then that is where you are going to get the maximum value. Unfortunately, most items are recycled for the raw materials.
There are a lot of national services that only provide a mail-in option. If you do not have the opportunity to deal with someone face to face, then this is an option, but again it pays to be careful. Once you mail it out, you lose some control. I am sorry to say, I hear a lot of complaints. If you are using a mail-in service and have a few items you want to sell, I suggest you send them in one at a time. Make sure you deal with a reputable firm. For a National Mail-in check with the Better Business Bureau at www.bbb.org or any other rating service in your area. Also, check the internet for reviews
Selling to an individual has some benefits but the safety and swindle drawbacks should give everyone pause. For your personal security, deal with an established business. My “online” ads include my photo so that my customers can know who they are dealing with. An established business has a vested interest in making sure you are a safe and satisfied customer.
If you have any comments or questions please feel free to contact me. If you have suggestions for other articles relating to gold recycling I would be happy to consider them.