Hi All,
I just joined the forum a few days ago after recently getting interested in the whole gold refining idea. Interestingly enough, it was actually anger that drove me to begin looking into it. I had been to an auction where several silver coins and bars were being sold and they were bringing outrageous prices (like 200-300% over spot price) and being bought by the same guy. I had simply wanted to buy maybe a 10 oz. silver coin for "good luck" while playing poker and such but the prices were just outrageous.
So then I realized that I had some old scrap gold jewelry lying around that I hadn't used in years (class ring, herringbone chains, nuggets, etc.). Adding everything together and adjusting for the karat, I would have had just shy of 1 troy ounce. Initially I tried to find a business that would refine it for me for a reasonable price and make me a gold bar. Well, apparently places like that don't exist or I had no luck finding one.
I did however run across a jeweler that I talked to over the phone who said that while he didn't do that, we might be able to trade out the jewelry for coins or a bar or something at his store. That sounded reasonable to me, so I gathered up my jewelry and off to the jewelry store I went. Needless to say, his definition of "trade" was quite different than my definition of "trade". Essentially he wanted to buy the jewelry at a 41% discount and then "trade" that for something in his store that included his mark up (which in my opinion was majorly double dipping). Obviously I balked and then I got the Pawn Stars lines about overhead, he was taking the risk, etc.
Now I understand that businesses have to make money and that the 41% discount is not out of line with what a lot a scrap jewelry dealers pay, but I felt like he got me in the store on the false premise of a "trade" thinking I was either desperate for money or that I had already partially committed so I would go through with it. Of course I left the store with a few choice words.
Later, I found a refinery online that only served businesses but their charge (assuming I understood it correctly) was a $50 and then the business got 98.5% of the gold's value after refining. So I got madder after realizing what he would have likely gotten from the jewelry he was trying to double dip me on.
So I decided I still wanted my gold bar and the only viable option seemed to make it myself, so here I am trying to learn how to do it.
Just wanted to make a quick edit to ensure I don’t accidentally offend anyone who may own a business buying scrap jewelry. I understand that it is common in the industry to pay ~60% of the value for scrap jewelry. The reason that I was turned off by the guy was the pretense of a “trade” and then the attempt to double dip.
Perhaps that’s normal but I read the situation as though he was trying to do a bait and switch or take advantage of my ignorance of the process. My purpose was not to insult any business owners here on the forum. I was just explaining my path to exploring gold refining.
Avery
I just joined the forum a few days ago after recently getting interested in the whole gold refining idea. Interestingly enough, it was actually anger that drove me to begin looking into it. I had been to an auction where several silver coins and bars were being sold and they were bringing outrageous prices (like 200-300% over spot price) and being bought by the same guy. I had simply wanted to buy maybe a 10 oz. silver coin for "good luck" while playing poker and such but the prices were just outrageous.
So then I realized that I had some old scrap gold jewelry lying around that I hadn't used in years (class ring, herringbone chains, nuggets, etc.). Adding everything together and adjusting for the karat, I would have had just shy of 1 troy ounce. Initially I tried to find a business that would refine it for me for a reasonable price and make me a gold bar. Well, apparently places like that don't exist or I had no luck finding one.
I did however run across a jeweler that I talked to over the phone who said that while he didn't do that, we might be able to trade out the jewelry for coins or a bar or something at his store. That sounded reasonable to me, so I gathered up my jewelry and off to the jewelry store I went. Needless to say, his definition of "trade" was quite different than my definition of "trade". Essentially he wanted to buy the jewelry at a 41% discount and then "trade" that for something in his store that included his mark up (which in my opinion was majorly double dipping). Obviously I balked and then I got the Pawn Stars lines about overhead, he was taking the risk, etc.
Now I understand that businesses have to make money and that the 41% discount is not out of line with what a lot a scrap jewelry dealers pay, but I felt like he got me in the store on the false premise of a "trade" thinking I was either desperate for money or that I had already partially committed so I would go through with it. Of course I left the store with a few choice words.
Later, I found a refinery online that only served businesses but their charge (assuming I understood it correctly) was a $50 and then the business got 98.5% of the gold's value after refining. So I got madder after realizing what he would have likely gotten from the jewelry he was trying to double dip me on.
So I decided I still wanted my gold bar and the only viable option seemed to make it myself, so here I am trying to learn how to do it.
Just wanted to make a quick edit to ensure I don’t accidentally offend anyone who may own a business buying scrap jewelry. I understand that it is common in the industry to pay ~60% of the value for scrap jewelry. The reason that I was turned off by the guy was the pretense of a “trade” and then the attempt to double dip.
Perhaps that’s normal but I read the situation as though he was trying to do a bait and switch or take advantage of my ignorance of the process. My purpose was not to insult any business owners here on the forum. I was just explaining my path to exploring gold refining.
Avery
