Still learning...

[ljh815]

Hi guys,

Just found the forum and wanted to say thanks to all who take the time to educate.

I have been in the gold buying business for about 4 years now, and I have to say its been a wild ride. (Can we please bring back 2011! :lol I started out selling to a local buyer who was paying approx 90% and that worked out well for both of us since he was always available to me when I had questions. Cash didn't hurt either So once I learned the ins and outs of the buying process, I was eventually attracted to the 98% that the refineries were offering. I have now been sending off my Gold for a little over a year, and I must admit I never really took the time to learn the details of what I was actually getting. I guess I just figured it was better than the 90% that I was getting, so I shouldn't complain. After reading for hours here, I am starting to feel like I'm at the mercy of this refiner, and the payouts are getting less and less. I always thought the guy melting the gold was putting a ring or 2 in his pocket from each melt and doing well for himself! Who would know right? So I guess at this point I feel like I might be better off selling to a local buyer again since I am only actually getting 92-93% from the refinery.

Thoughts?

 

[g_axelsson]

Hi and welcome to the forum!

It is always hard to tell if a refiner is honest with you when you are sending in mixed jewelry. There will be melt losses from dirt, stones removed... and so on.
But if you can melt your scrap before sending it in, drill a couple of holes and then stamp the bar with the weight then it is a lot harder for the refiner to cheat on you. You know the melt weight, there shouldn't be any major melt losses after the first melt. And you can always send your drilled sample to an independent assayer if you suspect foul play.

I haven't done it myself but I have read about these tricks on the forum.

Almost anything you can think of asking has already been discussed on the forum, so get comfortable, use the search and have a good time!

8)

Göran

 

[Lou]

I wouldn't necessarily call it a "trick" Goran because it's more like taking an insurance policy out on your material--the more data that the refiner believes you have, the more relieved he should be. It's been my experience that educated customers are the easiest ones to deal with and have the most appreciation for the process. The GRF is kind of a school for how to prepare your shipments. Obviously, sending in pure gold/silver/metals eliminates much of the trouble for the customer and the refiner.

 

[g_axelsson]

You're correct, Lou. It is a way to show the refiner that you are not easily fooled and know what you have.

Just as a package with engine parts I saw once, it had a note saying "The contents of this package have been photographed for your security."
You know that you will run into problem if you claim that something is missing just to get a freebie... not that I would ever do something like that, but it keeps you from being tempted.

Göran

 

[ljh815]

The problem I am having is definitely with the assays. I am only losing a few grams in the melt which is to be expected since I don't bother with the melees and such, but on this last lot of approx. 10ozt they listed the PPH at 54.3 for 14k and 36.9 for 10.

 

[FrugalRefiner]

Depending on the items you're sending in, those numbers aren't beyond the realm of possibility. Karating laws used to allow a piece to be up to 1/2 karat under the stamped value. If the item includes solder, the total allowance was up to 1 full karat under. If your items were older and included solder, those numbers are possible. When I buy, I always assume the worst, so I calculate 14 Kt as 13 Kt, and 10 Kt as 9 Kt.

Dave

 

[MiguelRosas]

ljh815 -

I think, and everyone correct me if I am wrong, that burning your melee is a mistake if you are doing it constantly. Although time consuming, and a pain in the butt, either dissolving the gold or removing the stones by hand will yield some significant icing on the cake for you in time by collecting the stones. At an average of $90 - $100/ct. for ugly browns, a little bit of time could bring in a few bucks.

Just want you to capitalize on all of your money, and not throw it away bc it's annoying to remove them.