Gold purity vs price.
- Thread starter Wonka
- Start date
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I think you will find that you will not recover the cost of the chemistry to increase the purity as you describe.
Unless you have a market for your fine gold you will always get less than spot wether it’s .99 or .9999.
Unless you have a market for your fine gold you will always get less than spot wether it’s .99 or .9999.
Your responses make little sense to me. You were offered the rate of $1400 per oz or for your 15 grams? For a total of $675?
You should get 98-99% of spot. I hope you walked.
shadybear
Well-known member
99% I would like to know where you get that seems high. Dont refinerys pay 96%
1400 for 30 grams sounds like a price from a gold buyer, like a we buy your gold kind of place at about 80%
1400 for 30 grams sounds like a price from a gold buyer, like a we buy your gold kind of place at about 80%
98% is pretty typical for an xrf that reads both sides as 99.99. Larger quantities might hit 99%. You won’t get it at the average “we buy gold” places, you need to find a place that collects for larger shipments to refineries. Basically cut out a middleman or two.
kurtak
Well-known member
I assume that was an offer from a walk in "we buy gold" shop which sounds "about" right as that is "about" 80% spot
Different "we buy gold" shops of course buy at different rates - I have had quotes as low as 25% below spot (which I of course walk away from) & though rare & harder to find some that pay 10% below spot
More common these shops buy at 15 - 20% below spot
Just what these "we buy gold" depends "somewhat" on how much competition to buy gold there is in the area
In other words if there are 10 we buy gold shops with in a 100 mile radius most of them are going to buy at 15 - 20% under spot & you "might" find one that "may" buy at 10% under spot
On the other hand if there is only 1 or 2 shops with in a 100 mile radius they are more likely to buy at 25% even 30% under spot because they have no competition (you have to drive more then 100 miles to get a better price)
Purity rarely if ever has anything to do with it (though they may use that as a talking point when they give you a quote)
That is because they buy based on the actual gold content - so it does not matter if the gold "content" is 12 karat or 24 karat - & that is because when they send a batch of gold to their refiner the refiner pays them based on the actual gold content of the batch sent in - so at the refiner it does not matter if the batch sent in is 12K or 24K because the refiner pays the same rate "based on gold content"
Example; - using the refiner I send my gold to - if I send them 1 ozt of 24K gold they pay me 96% spot (minus a $35 assay fee) if I send them 1 ozt of 12K gold they pay me 96% spot (minus a $35 assay fee) so I get paid 96% on a 1/2 ozt of gold because 12K gold is 50% gold & 50% other metal
The only real difference between a we buy gold shops & an actual refiner is that we buy gold shops generally don't have a sliding pay out scale on what they pay for gold - whereas refiners do
In other words "generally" we buy gold shops pay the same rate whether you are selling 1 ozt gold or 10 ozt gold
on the other hand - if you send direct to a refiner their pay out will slide based on the amount of gold you send in
Example; - again using the refiner I send my gold to - if I send ------
less then 5 ozt gold they pay 96% spot minus a $35 assay fee
5 - 10 ozt gold they pay 97.5% spot no assay fee
10 - 25 ozt gold they pay 98% spot no assay fee
25 - 50 ozt gold they pay 98.25% spot no assay fee
50 - 100 ozt they pay 98.5% spot no assay fee
over 100 ozt they pay 98.75 - 99% spot (depending on how much over 100 ozt) no assay fee
And it does not matter if the gold sent in is 24K or 6K they pay those same rates based on the amount of actual gold in the batch sent in
My point is - it sounds like you took your gold to a we buy gold shop - they pay 80% spot & they likely pay that whether it is 6K or 24K - as that is "ball park" of what these shops pay
If there are other we buy gold shops where you live - all you can do is try them out - you "may" find one that pays 5 -10% more then the shop you went to - OR - find others that pay 5 - 10% less then the shop you went to
For what it is worth
Kurt
Southfork
Well-known member
We buy gold shops are quick cash for small scale miners. Easy way to cash in on small amounts of mined gold 85 - 90 percent of spot local and some private collectors will pay spot.
Kurt may I ask what refinery you use? I live in MO and there are only two refineries and both don’t buy gold from anyone that’s not a whole seller. I am currently trying out these cash for gold . Com people. Thier suppose to pay 99% spot. So will see.
patnor1011
Well-known member
Google bit more about them. There are companies (not saying this one may be the case) who offer 98%, people ship goods to them and then they are told it was not pure enough or whatever else comes to the mind and when people ask for their material back then there is another set of excuses like it was already processed and such.
Best way is to come to a place where your gold is tested in front of you and will not go out of your sight before payment is agreed or made.
- Joined
- Mar 19, 2021
- Messages
- 49
Really? where was this? You would have been paid 1.5% under spot in Los Angeles
- Joined
- Mar 19, 2021
- Messages
- 49
I get 1 to 1.5% under spot at A&M Precious metals in L.A. minus assay fee.
And that was with a 10% “bonus”
