# Jewelry Buyers: How much do they pay these days?



## CMM (Feb 8, 2018)

I used to be a scrap gold buyer (jewelry, coins, bullion, old flatware). Back then I paid 70-75% of spot to clients (general public), and that was a superior price, in my area at least. 

That was in 2009. I'm starting back up now, and it seems like average rates may have gone up a bit, with the exception of those who lowball clients.

So, if you're willing to say, what do you pay (if you're a buyer--not an actual refiner)? Or what do know about what other buyers pay? 

Not looking for secrets here. I'll call local places too, but just wanted to get a general idea from different areas.

Thanks.


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## snoman701 (Feb 8, 2018)

You would still be a good collector in the local market. 


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## goldsilverpro (Feb 8, 2018)

Not too long ago, a jeweler I knew in a small town was paying 50%. I thought he was garbage.


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## CMM (Feb 8, 2018)

thanks snoman701 and goldsilverpro.

Sounds promising so far. Anybody else have any input? I always tried to pay near the top, but I need some room for profit too. I feel like 80% is too high if I'm not dealing with a couple ounces of scrap at a time.


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## nickvc (Feb 9, 2018)

If you have enough money then buying off all the other buyers locally and taking a small margin may be a way forward if you can source a decent deal off a refinery and pay instant cash.


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## CMM (Feb 9, 2018)

Agreed. That's a little down the line, though, after I grow in the wider margins for a little while.


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## snoman701 (Feb 9, 2018)

nickvc said:


> If you have enough money then buying off all the other buyers locally and taking a small margin may be a way forward if you can source a decent deal off a refinery and pay instant cash.



How much is reasonable at that point though? 95% on gold, or can you get away with less? 

I imagine that if they are getting paid on silver they are usually going to be outside of the realm of the quick flip (though possibly not). 

I get a very competitive rate on gold, and I assumed that most of these guys do, so it really limited my desire to even try to buy from collectors or small jewelers.


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## nickvc (Feb 9, 2018)

snoman701 said:


> nickvc said:
> 
> 
> > If you have enough money then buying off all the other buyers locally and taking a small margin may be a way forward if you can source a decent deal off a refinery and pay instant cash.
> ...


 
It all depends on the deal you can get but some of the big buyers I know work on 1/2 -1% or even less if there is serious volume but they are UK based where there is no allowance on karat goods and if anything it will more likely be over than plum plus they get the silver.


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## snoman701 (Feb 9, 2018)

Which just blows me away that they seem to operate on those margins. I've ran the numbers. 

It really takes all the fun out of it...to reduce a $15,000 USD transaction to $150 in profit. Too much risk for me.


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## patnor1011 (Feb 9, 2018)

Jewellers around do pay 80% and some even more but strictly in form of in-store credit which actually very little considering the price of new jewelry.


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## anachronism (Feb 9, 2018)

tbh there are places in the UK you can get 95% plus of spot but then again you're in the US where they seem to be harsher.


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## nickvc (Feb 10, 2018)

snoman701 said:


> Which just blows me away that they seem to operate on those margins. I've ran the numbers.
> 
> It really takes all the fun out of it...to reduce a $15,000 USD transaction to $150 in profit. Too much risk for me.




These guys are buying millions of dollars of scrap a month and I guess sell as they buy to mitigate the risk in the fix price moving against them, if you do the figures it’s better than leaving the money in the bank, if you turn over 1 million a week you bank between $5000 -$10000 a week plus any silver, not a bad return, remember big refiners are basically banks in the old fashioned sense making small but fixed returns on huge sums of money.
The real point is you have to have the cash to do this which is why I commented originally about how deep the OPs pockets were, if your only turning over $15000 a month it’s not going to change your life much but if you can add that to your own purchased scrap with a higher margin its all profit.


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## scrappappy (Feb 10, 2018)

Here are the rates that one of the Jewelers pays in the town where I live. Not sure how they do it other than our state having major issues with drug addiction. 

50% of gold valued up to $500
60% for gold valued at $501 - $1000
70% for gold valued over $1000.


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## anachronism (Feb 10, 2018)

scrappappy said:


> Here are the rates that one of the Jewelers pays in the town where I live. Not sure how they do it other than our state having major issues with drug addiction.
> 
> 50% of gold valued up to $500
> 60% for gold valued at $501 - $1000
> 70% for gold valued over $1000.



That's crazy prices pappy.


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## snoman701 (Feb 10, 2018)

nickvc said:


> These guys are buying millions of dollars of scrap a month and I guess sell as they buy to mitigate the risk in the fix price moving against them, if you do the figures it’s better than leaving the money in the bank, if you turn over 1 million a week you bank between $5000 -$10000 a week plus any silver, not a bad return, remember big refiners are basically banks in the old fashioned sense making small but fixed returns on huge sums of money.
> The real point is you have to have the cash to do this which is why I commented originally about how deep the OPs pockets were, if your only turning over $15000 a month it’s not going to change your life much but if you can add that to your own purchased scrap with a higher margin its all profit.



Even at $15k/mo, if you have an efficient operation with repeat sellers, and you have the analytics to do it quickly and accurately....you can grow ridiculously quickly if gold goes back up. Right now, I don't know of an operation around here that moves 1 million a week, that's a lot of gold for a $1300 gold market. One thing to consider is that it's also a lot of stripping lots to run. I think that buying a million a week without running stripping lots is going to be really hard at any gold market. And those stripping lots take a reasonable amount of infrastructure to do it efficiently. 

The sell as they buy, I'm yet to fully understand the system, but I know that my offer on gold when I sell is based on the offer to buy from the actual refinery. So basically, as soon as I accept the offer, the melt house has already locked in the price and sold it, payable upon receipt (and other terms).

I'm just starting to get myself to a point where I'm financially healthy....not anywhere near the point of buying karat, but I am in a unique position to understand the finances of it. It's not a bad business, if you have the stomach for it. I'm not sure I do, I'm too honest. By honest, I mostly mean the words that come out of my mouth are often abrasive and not what a seller wants to hear.


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## snoman701 (Feb 10, 2018)

anachronism said:


> scrappappy said:
> 
> 
> > Here are the rates that one of the Jewelers pays in the town where I live. Not sure how they do it other than our state having major issues with drug addiction.
> ...



Those are basically pawn shop prices around here. That 50% number can go up or down based on geographic location and lot size.


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## FrugalRefiner (Feb 10, 2018)

In the state of Ohio, where I live, there are state regulations that apply to the purchase of precious metals. In simple terms, all "Precious Metals Dealers" are subject to essentially the same rules as pawn shops.

Following are some excerpts from the regulations:


The state of Ohio said:


> Every person licensed under this chapter shall keep and use books and forms approved by the superintendent of financial institutions, which shall disclose, at the time of each purchase, a full and accurate description including identifying letters or marks thereon of the articles purchased, with the name, age, place of residence, driver's or commercial driver's license number or other personal identification, and a short physical description of the person of the seller. The licensee also shall write in the book the name of the maker. The licensee shall keep the books in numerical order at all times at the licensed location, open to the inspection of the superintendent or chief of or head of the local police department, a police officer deputed by the chief or head of police, or the chief executive officer of the political subdivision thereof. Upon demand of any of these officials, the licensee shall produce and show an article thus listed and described which is in the licensee's possession.
> 
> Each person licensed under Chapter 4728. of the Revised Code, shall, every business day, make available to the chief or the head of the local police department, on forms furnished by the police department, a description of all articles received by the licensee on the business day immediately preceding, together with the number of the receipt issued.
> 
> ...


So at a minimum, every dealer is required to hold every purchase for a minimum of five days. If the police notify the dealer an item may be stolen, they have to hold it for up to 30 days.

If you are unlucky enough to end up with a stolen item, there are provisions for its return to the true owner:


> (C) If the chief or the head of the local police department determines the identity of the true owner of the allegedly stolen article, that has been purchased and held by a licensee, and informs the licensee of the true owner's identity:
> 
> (1) The licensee may restore the allegedly stolen article to its true owner directly.
> 
> ...


So it's not as simple as buying an item and immediately turning it over to a buyer.

Of course, not everyone abides by the regulations. A small buyer may get by unnoticed, but if they're caught, the regulations include penalties:


> Whoever violates Chapter 4728. of the Revised Code is guilty of a misdemeanor of the first degree on a first offense and a felony of the fifth degree on each subsequent offense.


Regulations vary from state to state.

Dave


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## snoman701 (Feb 10, 2018)

Yes, Michigan is 9 days, when buying from public. Business to business transactions have no hold period.


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## nickvc (Feb 10, 2018)

Sno these guys buy jewellery scrap, industrial scrap you name it if it’s precious metals in decent percentage they buy, if your trying to equate e scrap to the same market it’s impossible due to the low grade of values in e scrap and no I wouldn’t expect you or anyone else to work on those levels but your buyer might well be doing so.


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## snoman701 (Feb 10, 2018)

I know. I work for my buyer doing odd jobs. It's done a pretty good job at making e-scrap really darn boring. 


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## scrappappy (Feb 11, 2018)

snoman701 said:
 

> anachronism said:
> 
> 
> > scrappappy said:
> ...



That Jewelry shop is one o the largest establishments in our area. Location, location, location!
We also frequent the bumper sticker: Chicken Pot Pie, my three favorite things!
Needless to say, Gold isn't at the top of the list around here.


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## snoman701 (Feb 11, 2018)

scrappappy said:


> We also frequent the bumper sticker: Chicken Pot Pie, my three favorite things!



If that were a delivery restaurant chain, it could put Pizza Hut and Dominos out of business and have Taco Bell running for the border.


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## CMM (Feb 11, 2018)

I couldn't get away with the 50% and 60% around here, nor would I want to. I just don't think it's fair.

Sometimes people call and ask, "How much do you pay per dwt of 14K?" But most people have no idea what their jewelry is worth (most people with coins and bullion do). It's not like buying a used car, or something off Craigslist, where you both know the value, but just haggle to find the best mutually agreeable price.

So I guarantee my best offer up front.

I'll probably aim at 75%, but I don't like to advertise prices. I'll answer directly when a client asks, but there's no need to tell everybody unless I was paying more than absolutely _everybody_ else.

South Carolina (my new home state) has a precious metals dealer license too. What a drag, especially in a mostly small government state. But that's the cost of business. So, yeah, the profit margin has to account for the waiting period, among other things.


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## nickton (Apr 6, 2018)

It makes one wonder if the gun laws shouldn't be that strict too.


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## jimdoc (Apr 7, 2018)

nickton said:


> It makes one wonder if the gun laws shouldn't be that strict too.



Gun laws are either ignored for criminals, or abused against honest citizens. You should know that in California. If you are for stricter gun laws, enjoy the state you are in. The laws on the books already need to be enforced. And criminals don't care about laws anyway. If this gets too political, it will be removed.


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## nickvc (Apr 8, 2018)

I think we should avoid getting into politics but I will say that Jim is right that criminals can always get guns but here in the UK it’s incredibly hard for an honest citizen to purchase any gun and can take a very long time to actually get a license to actually buy one, you also have to be police vetted and have a report from your GP.


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## Palladium (Apr 8, 2018)

It's fairly easy here. You have a gun, i want a gun. I give you money, you hand me gun!
Sales between private citizens are private and requires no government approval. Sales from manufactures and dealers require background checks. And it's an open carry state so you can strap it own your side and wear it around without a license.


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## g_axelsson (Apr 8, 2018)

Palladium said:


> It's fairly easy here. You have a gun, i want a gun. I give you money, you hand me gun!
> Sales between private citizens are private and requires no government approval. Sales from manufactures and dealers require background checks. And it's an open carry state so you can strap it own your side and wear it around without a license.


I see...

You have a gun. I want a gun. I give you money, you hand me gun. I point the gun on you. You give me money. I leave.

/Göran


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## jimdoc (Apr 8, 2018)

g_axelsson said:


> Palladium said:
> 
> 
> > It's fairly easy here. You have a gun, i want a gun. I give you money, you hand me gun!
> ...




He sold you an unloaded gun. The one in his holster is loaded. So he then takes his gun back and keeps the money.


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## Evan2468WDWA (Apr 8, 2018)

g_axelsson said:


> I see...
> 
> You have a gun. I want a gun. I give you money, you hand me gun. I point the gun on you. You give me money. I leave.
> 
> /Göran


Right, of course the only trustworthy people with firearms are government officials because we all know that governments have never ever done anything wrong.


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## Palladium (Apr 8, 2018)

That's why you bring a buddy! :mrgreen:


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## snoman701 (Apr 9, 2018)

Palladium said:


> That's why you bring a buddy! :mrgreen:


Or a grenade. It takes all the skill out and just leaves the crazy. People are afraid of crazy.


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## nickton (Jun 29, 2018)

And lest we forget: I will quote from the good, the bad, and the ugly:

"There's two kinds of people in the world: Those with loaded guns, and those who dig. You dig."

:mrgreen: :lol:  8)


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## dfpijfgiogjhiuodfgfd (Nov 7, 2018)

80-85% here in MA. A lot of competition.


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## nickvc (Nov 8, 2018)

dfpijfgiogjhiuodfgfd said:


> 80-85% here in MA. A lot of competition.



Well if you refine the gold purchased at 85% of spot it should leave at least a 12% margin less costs, better than any bank return on savings :shock:


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## lekjaz (Sep 16, 2020)

In my experience, the public thinks that their karat gold items are worth some large percentage of the overinflated price they paid on QVC or at Jared. They are shocked and disgusted if I offer them even 80% of spot, and they don't understand that is a really good price. I stopped beating my head against a wall trying to buy karat gold from the public. It's not worth my time or theirs. I only buy from thrift/antique shops, junk dealers, and from pickers who like going to estate and yard sales. The pickers are buying this stuff for next to nothing and are happy to sell it to me.


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## Duncantj (Jan 2, 2021)

I only pay 5065%6 on what I buy and I am one of the highest paying buyers in my area I. Gold and pay 40% on Silver most buyers and pawn shops only oy around 30% on gold


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