what is a fair price to be paid.. please read

[Anonymous]

my family and me buy gold we obtain about 2000-2800 dwt. a week on average. we are trying to find out what we could/should be paid (based on market prices) we have a guy(owns a jewelery store) who is paying us spot minus 9.7% (example on 14k: market value/20 x .5833 less 9.7%) is this fair? can we get a better deal? we found someone else(deals in coins) who will beat the price but only by a small margin. both buyers pay us immediatly. any help on this would be great.

 

[Fournines]

Jeffford,

You could get paid a higher rate for your scrap, but it depends on if you want to try selling it a different way. Are you willing to delay your payment by a few days in order to receive a higher percentage? Are you willing to have the material melted and an assay performed to determine actual gold content?

There are many people here who might want to purchase scrap from you to test their own refining methods. You might even want to learn to refine the material yourself - there are a lot of options and a lot of resources here on the board.

Have a look around and read what everyone is up to. Welcome to the forum!

-Fournines

 

[Ageo308]

Jeff at the moment im paying 96% spot (and for 14k .585 not 5833 ) Payment like you said is instant and by the time you factor in wastage, assaying etc... when you refine a batch to alot of people its just not worth the extra effort. For you thow a different story

But im in talks with refiners to get an even better rate so that the customer gets more.

In the end customers want fast, easy and top prices for their scrap. Offer that and you will have no problems.

 

[4metals]

Jeff
I have attached a spreadsheet I use to show customers who do what you do how much they are paying their refiner for his services. Then they can make an educated decision on wether or not they want to process their own scrap.

I can't imagine anyone I know of charging you over 5% so I only wrote the sheet up to 5%.

The sheet is locked so you can only enter gold and silver price and the constants in red on the bottom. The constants I have in there already are a good place to start.

Given the numbers you've indicated your refiner is making a bit less than a cool 250K per year off of you. Since you are getting 9.7% off spot and your scrap is considered at plumb his margin is in the neighborhood of 8% as karat scrap is never plumb. So if you double the 4% number across from no silver paid that should be where you are.

Hope this helps.