It’s a Fact! Internet Gold Buyers Generally Pay More for Your Jewelry than Local Jewelers Will!

Jan. 12, 2012 - PRLog -- By Joe Montes

In the past several months, many local jewelry stores have jumped on the gold buying bandwagon. Moreover, they have been advertising heavily with 60-second spots on both cable and network TV channels. In one case, a jewelry chain with numerous outlets in California Malls, has been promising that they will pay sellers “50% more”. The real question that remains unanswered is, “more than what—or who?”

Let’s Examine the Facts About the Value of Gold

Gold is a commodity trading on world markets just like Soybeans or Pork Bellies. The market price (value) of any commodity is determined by supply vs. demand and the perception of making a profit for investors.

In the case of precious metals like gold, platinum and silver, the market price is determined by the same factors, along with the fact that gold, in particular, has been viewed as a safe haven during difficult economic times when the U.S. dollar, and the paper denominated assets it backs, are being devalued by a volatile global economy.
The real value of gold is determined by two primary factors: The current market price and the actual amount of gold one has to buy or sell. As an example, lets imagine that you have a heavy gold necklace for sale that weighs in at 20 grams of 22K gold. How much is that necklace really worth?

If the market price for gold (at the time of the buyer’s assay) is $1,632.50/ounce, the buyer knows that there are 31.3 grams in a Troy ounce. Therefore, each gram of 22K gold is worth $1,632.50 divided by 31.3 or $52.16. This tells your buyer that the full 100% value of your necklace at the time of his assay is $52.16 X 20 or $1,043.20.
No Buyer Anywhere Can Pay You the Full Current Value

People who buy precious metals are in business. This means that they have operating expenses (overhead) such as employee salaries, rent, etc. They obviously won’t be in business for long if they fail to cover at least a portion of their overhead and make a profit on each transaction. So unless the buyer is a serious optimist who believes he will make all his profit from future increase in the price, these factors just cannot be overlooked. Paying sellers 100% of the value of what they buy is just not reasonable business.

Why Internet Buyers Can Really Afford to Pay You More
An Internet buyer has a much lower operating overhead. They have fewer employees, generally no rent or very-low rent to pay and lower expenses across the board when compared to a jewelry store located in high-rent malls or Main Street business locations.

Yes! They probably can pay you 50% more than some buyer who only pays their customers only 15-25% of actual value. However, hopefully you would not choose such a buyer, because you’d be smart enough to check the company out on the Better Business Bureau website (www.bbb.com) first.

Regrettably, there have been a small number of Internet buyers who took advantage of sellers with absurdly-low payouts, and they have given much of the Internet buying community a black eye. Nevertheless, there are many buyers on the web that are Accredited Members of the BBB and have no unresolved complaints. They generally pay customers 70-80% of the actual value of the gold, platinum and silver property that they send in.

It doesn’t take the mind of Albert Einstein to quickly see that a jewelry store, especially a large chain with many outlets in expensive mall locations, just cannot realistically pay you more than a legitimate, dependable, BBB-accredited buyer. They just must cover their operating expenses and make a reasonable profit on each transaction in order to remain in business profitably.

You Can Find this Out for Yourself

Weigh one of the heavier pieces of gold jewelry you wish to sell for cash. Find out how many grams of gold it contains. Then, call and ask your local jeweler how much it is worth. Remember, however, that only 22K gold is about 100% gold. If your item is 18K, 14K or 10K, it will be worth less. For example: If a piece of gold jewelry is marked 18K, for example, it contains 75% gold; 14K contains 58.33% gold; 12K has 50% gold and 10K has just 41.67% gold.

Therefore, if your gold item mentioned above is only 12K gold, and its total weight in grams is 20 gms, then it actually contains just 10 gms of gold (50%) and that’s all the buyer will pay for. The remaining 10 gms that isn’t gold has no value to the buyer whatsoever.

An Important Suggestion

As mentioned earlier, always check out the buyer you are considering first, whether the company is online or in a storefront location. Just as important, make sure your buyer explains how your property will be valued and about what percentage of its full value you will receive from him. If it’s less than 50% of the current 100% value, look elsewhere.
Finally, don’t allow some smooth-talking TV spokesperson to convince you they will pay you more than a reliable Internet buyer. Get the details. In almost evey case, notwithstanding their claims, they just can’t do so.

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When you choose Cash for Gold as the company to buy your gold jewelry, you will be dealing with the one Internet buyer who will pay you the highest possible percentage of market value.