Refining worth it? A formula to calculate price of my gold.

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kadriver

Well-known member
Joined
Oct 25, 2010
Messages
1,830
Location
United States
First off - I believe you make your money in precious metals, WHEN YOU BUY IT.

I have made a business out of selling gold on ebay for over 4 years now. I currently have 106 grams of 14k and 21 grams of 10k right now.

I have a Dilemma: should I hang on to this gold and refine it, or should I sell it on Ebay where I know I can get a good price?

There is currently a gold feeding frenzy on Ebay - right now.

I get about 91 to 93 percent of spot price AFTER all my Ebay & Paypal fees are paid. A new Ebay seller can expect to get about 85 percent.

I sell using one day auctions. And I can calculate to within $10 what I will receive.

I usually get paid the next day - or sometimes the same day.

I sell mostly 14k, 10k, and 18k gold jewelry as scrap.

For September & October we sold 213 grams of 14k, and 120 grams of 10k total for the period.

Should I have refined this gold instead of selling it (assuming that my refining produced at least 99% purity).

Using this formula, I can calculate to the nearest $10 what I can expect to receive:

(((gr x kt)/31.1)X spot) X (.91 to .93) = $

gr = weight of gold in grams
kt = karat of gold (example 14k=14/24=.585)
31.1 = grams in a troy ounce
spot = closing spot price for the day
.91 to .93 is the percentage of spot I receive (91 to 93 percent).
$ = the amount in dollars I can expect to receive.

My customers are all repeat buyers.

I carefully test and weigh each item of gold I will sell.

I remove all the stones so only gold metal is in the lot.

I even pad the weight - IN THEIR FAVOR so they get about 1/10th gram extra in the lot.

My customers are repeat buyers because they are CERTAIN that they will get what they have come to expect - quality, honesty, a little extra.


HERE ARE MY QUESTIONS:

Is it worth it to refine all my scrap karat gold, or should I just refine a little & keep on getting 91 to 93 percent for most of it on Ebay?

Can I sell my refined gold (once I refine some) as easily as i can on Ebay?

If it is easy to sell refined gold, to whom can it be sold and how?

Are there a list of private buyers available through this forum.

Can I get more for refined gold as opposed to selling it as karat scrap?

I have fallen in love with refining precious metals. I have not yet done a batch of gold.

I would like to think that refining, while loads of fun, can also be more profitable than what I can currently receive for my karat gold scrap.

Any inputs would be welcomed - Thank You
 
This is a maths problem due to the fact that most karat gold in the US isn't plumb.
You could sell 10k at $17.16 if you get 93% it's worth $17.52 at $1380 an ounce and at spot. Difference 2.1% , 18k is $30.94 and worth $32.34 difference 4.4% plus any silver or Pgms, on your 10k at 91% the difference is 4.2% and on 18k it's 6.2% so now you need to do your research and work out which is the best option for you.
IMHO if you have volumes refining is definitely the way forward, in small quantities not so sure as the costs could consume any extra profit and the time and effort is as much for 50 grams as for 500 grams :shock:
 
kadriver said:
First off - I believe you make your money in precious metals, WHEN YOU BUY IT.

That's dead on correct.


Couple month back i'v seen refined gold buttons beeing sold at eBay for slightly above spot + a couple of $$ for shipping, 1 gram each.

i do not know but i belive the seller end up with 93-95% of gold value...
the only thing that can be sold at few % above spot is bullion bars 1/5/10/1toz.

gain some trust here on the forum, and you might find great buyers here so that you can avoid at least the eBay fees
 
This is a maths problem due to the fact that most karat gold in the US isn't plumb.

If the above statement is true, and the gold I am selling has less gold than is marked, then that means
I am getting even more than I thought.

Also, the price I receive BEFORE Ebay & Paypal fees is 96 to 98 percent of spot.

Thank you for your kind inputs to my questions.

I am still studying Hoke, and other videos I have purchased.

It would appear that the trust I have built on Ebay is worth more than I though.

I am shooting to refine 1oz gold bars +/- with the weight stamped on them.

Is stamping the weight on the bar advisable?

I am going to pick out some nice solder-free gold pieces, about 50 grams, and try to refine it soon.

The rest of the metal I have will be sold on Ebay to keep my cash flowing properly.

If someone on this forum is interested in buying my scrap karat gold, then please let me know. I have no idea how that works.

I can't believe that I am having this much fun making money in gold & silver - it almost feels like I am doing something wrong.

Thanks to all for your inputs - this forum is priceless!

kadriver
 
If you are producing these for eBay, setting on a scale with the weight showing seems good enough.

It is possible you won't get any more for pure gold to cover your chemical costs. Perhaps less being in an unrecognized form and some of what you are selling may be for re-sale.
 
O.k ive been refining for a couple years now. I have to first say that its well worth it granted you make your own nitric and find a buyer who understands or knows the procedure. I found my guy through a few weeks of soul searching and people looking at me crazy cause i would try and explain the procedure. Everyone thinks you just melt shit together and wal-la...PURE GOLD....They have no idea. Nitric acid can cost you a whole set of limbs if you live sonewhere that it is hard to obtain. I make my own because its stronger , on demand and literally pennies on the dollar. Fractions of pennies. Let me know if you need some words or maybe a recipe. Im always up for help. Free of charge of course. I just hate to see anyone hurt themself doin this stuff.
 
hi ,
can you send us procedure of making nitric,
so all of us will know your way of making nitric.
thank you ,
 
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