melting gold jewellery

[Anonymous]

hi all


i buy a fair bit of gold jewellery from various sorces in the uk, at present im taking into a scrap merchants thats giving me 97.5% of spot for clean and hallmarked gold (no stones and so on)

i know that some of the gold i take in he pays me as 9ct but some is 12ct and so on, is it worth melting my own before i take it in to the scrap guy to get the total ammount of gold ct out of my jewellery.

if so what methods would be easiest as i have no knowledge at all about melting or refining. what equipment would be needed.

i have looked at the Shor Internationals machine and that looks best at the moment but i would like any help like - links , photos and so on

please try and explain in newbie terms as i say im no alchemist.

many thanks

 

[jimdoc]

Gary,
I wouldn't melt it in order to sell it.
If you melt it you don't have the
hallmarks and he may even try to
get it cheaper. If you get into refining
the gold that is another story. Just check
out the forum and take it all in and then
ask questions if you have any.
Jim

 

[Anonymous]

hi

thanks for the reply - if i were to melt it i would still get the 97.5% of spot they would just have to assay it first before payment is made.

my main thought is would i gain much extra (carat wise) in melting first and taking it in a more pure form.

i scrap about 300gms a week so there could be a fair ammount of loss - i read that it can be as much as 33% - this is whats got me thinking about melting / refining first

again any help would be great

 

[jimdoc]

You won't gain anything karat wise by just melting it.
Refining it is a different story, but you have to check
out this forum and see if you are prepared to get
involved in doing it yourself.
Jim

 

[glondor]

Just read the hallmarks your self and only take 1 karat type at a visit. It would be harder to cheat you if you know all the gold is the same karat. If he puts a 12k aside as a 9 k take it (that piece) and do not sell it to him. If he wants the gold he will change his act.

Be proactive in protecting your interests. You would not knowingly allow a bank teller or a shop keeper to fool you with currency this way, (short change you)so why let a gold dealer? By the way you are not getting 97.5% of spot if this happens.

I will buy your gold at 110% of spot if you let me appraise it his way. Seriously. All the best , Mike

Acid testing done well is a wonderful tool. Look for the "pawnbrokers guide" here on the forum. I keep a copy with me when I buy gold. Get some confidence and get your margins back.

 

[nickvc]

Gary I'm not sure where in the UK you are but melting and assaying your own bar is the way I'd go. You can buy or build a furnace very cheaply and assays here are around £10 per element. The losses you quoted seem very high and if I was melting clean carat scrap starting at 300 grams would expect the bar to weigh very close to it's starting weight say 298 grams with perhaps a small bead left in the pot that you will get on the next melt and the loss is usually compensated by the increase in the gold assay as the base metals burn or oxidize off. You should also get a better rate as there is no guessing, it's a known weight with a known assay.

 

[4metals]

I agree with Nick, your losses on melting should not exceed 1% for clean scrap. Often that is where you can be taken advantage of. If your bar was melted and you presented a clean bar to the buyer it would be remelted and might still have a small loss but that is from base metals burning off and your assay will increase proportionally, no precious metals are lost. 33% is absurd.

I notice you did not seem in a hurry to get paid, your main concern is to be paid for the true value. If that is the case, settle on an assay. Melt your own bar, a gas melter is inexpensive and easily constructed, drill the bar to sample it and send the drillings off to assay (an assayer needs 1 pennyweight for a proper assay) 10 pounds seems like the right price. Some assayers will return your coronets (the gold after parting in the assay) some do not. At todays prices the average pennyweight sample is worth $35 (US) That has to be figured in to the assay cost if it is not returned.

Knowing your weight and your assay result will help you judge the refiner you are dealing with and you can proceed accordingly.