Old Project Avalon Forum (ARCHIVE) - View Single Post - cash4gold liquidation

TtC · 02-24-2009, 05:59 AM

I think something needs to be straighten out first as I worked in the jewelry industry for twelve years.

Firstly, appraisal prices are a fraud. There are about six different types of appraisals depending on the situation.

Secondly, when you are doing cash4gold, you are selling your jewelry at scrap prices, meaning below spot.

Here's some math:

If you have a ring that is 14Kt gold and weights five pennyweights (1 pennyweight = 1.55517384 grams, so that is 7.78 grams) and want to sell it for scrap it goes like this:

They will firstly take the bid price, which is 987.10 as of right now, and divide it by 20 because there are 20 pennyweights in a troy oz, which is how gold is weighed.

987.10/20= $49.36 per pennyweight of 24kt pure gold. Remember, your ring is 14Kt. The percentage of gold is 14/24 which is 0.583. This is the actual gold content. Take the following:

49.36 x 0.583 = $28.79 per pennyweight of 14Kt gold.

They won't give you full market price because that won't cover refining costs so dock 10%. We now have $25.91/dwt.

Your ring is 5 dwt (pennyweights), so 5 x 25.91 = $129.57

Take the 129.57 and they will then remove another 10% from the 129.57 for labor and shipping costs.

Your ring, which if bought new the day before would have cost about $475 new, now gets you $117.

Like I said before, there is no way to make a profit on this as a consumer, BUT for those with broken jewelry, you might as well.

As for the diamonds and whatnot, if they were smart enough to take them out of the jewelry before they sent them off, they could only sell them to a jeweler willing to buy and they would only pay out less than what they can buy them for new from a wholesaler.

The markup on jewelry is usually three times, but don't blame them, your clothing has a markup of ten times. Jewelers only get targeted because you can sell it for scrap and people get mad. They have to make a living, too.

It is your choice what you do with your gold, but take responsibility for your actions.

02-24-2009, 05:59 AM	#28
TtC Avalon Senior Member Join Date: Feb 2009 Posts: 103	Re: cash4gold liquidation - another greedy strategy I think something needs to be straighten out first as I worked in the jewelry industry for twelve years. Firstly, appraisal prices are a fraud. There are about six different types of appraisals depending on the situation. Secondly, when you are doing cash4gold, you are selling your jewelry at scrap prices, meaning below spot. Here's some math: If you have a ring that is 14Kt gold and weights five pennyweights (1 pennyweight = 1.55517384 grams, so that is 7.78 grams) and want to sell it for scrap it goes like this: They will firstly take the bid price, which is 987.10 as of right now, and divide it by 20 because there are 20 pennyweights in a troy oz, which is how gold is weighed. 987.10/20= $49.36 per pennyweight of 24kt pure gold. Remember, your ring is 14Kt. The percentage of gold is 14/24 which is 0.583. This is the actual gold content. Take the following: 49.36 x 0.583 = $28.79 per pennyweight of 14Kt gold. They won't give you full market price because that won't cover refining costs so dock 10%. We now have $25.91/dwt. Your ring is 5 dwt (pennyweights), so 5 x 25.91 = $129.57 Take the 129.57 and they will then remove another 10% from the 129.57 for labor and shipping costs. Your ring, which if bought new the day before would have cost about $475 new, now gets you $117. Like I said before, there is no way to make a profit on this as a consumer, BUT for those with broken jewelry, you might as well. As for the diamonds and whatnot, if they were smart enough to take them out of the jewelry before they sent them off, they could only sell them to a jeweler willing to buy and they would only pay out less than what they can buy them for new from a wholesaler. The markup on jewelry is usually three times, but don't blame them, your clothing has a markup of ten times. Jewelers only get targeted because you can sell it for scrap and people get mad. They have to make a living, too. It is your choice what you do with your gold, but take responsibility for your actions.