Used gold jewelry for trade or process

[thteh]

Hello,
This is my first post. I've been in the business of buying the used gold jewelry from 9k through 24k and selling them to another buyer for a value based on an agreed formula, i.e Value = Weight x Adjusted Purity x Adjusted Market Price.
Where, the adjusted purity is 2% to 5% below the mark/stamp. For example, purity 85% apply to 22k, 88% 916, 77% 20k, 71% 18k, 54% 14k, and 28% 9k.
And the adjusted market price is normally at 2.2% to 2.5% lower.
I wonder if I could add more value to the business by processing the jewelry on my own compare with the practice mentioned above.
I hope the members in the forum can assist to enlighten me on this area.

Regards.
ThTeh

 

[Noxx]

Selling scrap gold at 97,5% spot is pretty good. Keep it that way.

 

[Ageo308]

Well my buyer pays sometimes over the spot but all invoices are GST inclusive (Goods and Services Tax we have which is 10%).

 

[carasoph]

Getting a 97.5% of spot price is GREAT... I do the same, but only get 85-92% of spot price... on top of that - taxes here are 15.5%, so that cuts the profit a bit more...

I found out that selling gold via Ebay is the best - you get almost 98% of spot price, and you almost always don't have to pay taxes...
Selling gold via ebay though, gets the best results when selling in batches of more the 2 ounces as scrap, or as a wearable jewelery.

Hope I helped someone out there to get better profits for his labor... :smile:

Caramon

 

[thteh]

Caramon,

Thank you for your feedback.
Using ebay to trade will be subjected to commission charge of about 2% right. So if you can save from greater tax charge then probably ebay is the answer. But, however, if you've a bulk quantity, say 2kg and above, then it should be much profitable to sell at 95% of spot in some country where no tax and commission involved (for gold transaction) if you can justify the shipping cost. I believe there are many people out there who are keen to buy from you at 95% spot.
And, on ebay, for how long can you wait to sell? I notice the turnover on ebay is quite long for jewelry. Unless you're a big capital businessman and risk taker for gold price to drop I don't think it's worthwhile to wait. Anyway, I drop the idea of selling on ebay. I wish to hear from someone with real experience using ebay to sell.

 

[Noxx]

Based on my experience, eBay is not the solution for gold. You will loose 6% of the final value of your item in eBay and Paypal fees plus the listing auction fee.

Unless you are selling way above spot, that's not profitable.

 

[4metals]

It all comes down to a question of scale. If you're processing enough metal your costs go below 1%. But now you have waste solids to get rid of or prepare into sampleable solids to have refined (they are payable) and you have to sell the gold. If you're a small guy it's not easy to sell your gold when you want to sell it. Plus most buyers will discount it or charge for an assay, which is expensive for high purity gold. 2 1/2 % isn't a bad deal because you're done when you cash the check.

 

[qst42know]

It comes back to the form of gold you are selling. If you refine it or melt it you are going to take a hit.

Search eBay completed for 1/10 oz. coins. With spot prices at $882. 1/10oz. bullion coins were selling for $117 to $156 plus shipping or shipping included.

Scrap gold jewelery almost always sells for more than spot based solely on the marks, the practice of under karating be damned. And that includes gold filled regardless of the wear the piece was subjected to.

I have spent countless hours looking for bargains on eBay and only rarely have I purchased.

Though you may be pleased with the purity you have achieved the buying public has no respect for your efforts. To sell on eBay you must leave it in the forms they expect. Anything else and you'll lose on the deal.