Gold coin jewelry question

mhammerman

I have an opportunity to buy some gold coin jewelry with 7-2 1/2 libs (late 1880's) in a bracelet and 1-5 lib necklace/pendant. I'm thinking melt for the coins Melt values and some for the mountings. I won't see them till tomorrow so I don't know much more than this. Unfortunately, I will probably have to write the check right after I have examined them so I'm trying to get studied up.

If the coins are decent at all, I will probably remove them from the mountings/bezels and put them in flips. If they are beat up, I'll just hold them for melt. Are there any tricks of the trade or things to look for with gold coin jewelry?

Thanks for any replies.

Mike

construct

<< <i>I have an opportunity to buy some gold coin jewelry with 7-2 1/2 libs (late 1880's) in a bracelet and 1-5 lib necklace/pendant. I'm thinking melt for the coins Melt values and some for the mountings. I won't see them till tomorrow so I don't know much more than this. Unfortunately, I will probably have to write the check right after I have examined them so I'm trying to get studied up.

If the coins are decent at all, I will probably remove them from the mountings/bezels and put them in flips. If they are beat up, I'll just hold them for melt. Are there any tricks of the trade or things to look for with gold coin jewelry?

Thanks for any replies.

Mike >>



They may be worth more in the jewelry. Be careful of fakes. I hear that counterfeits are often used for jewelry.

raycyca

PLUS, a lot of coins are damaged on the rims because of the way they are mounted. OR, they are polished to make them shiney in the jewelry. After you get them, or before if you can, weigh them. Check out redbook and see how much they should weigh. If they aren't the correct weight, they may be counterfiet. After they are out of the bezels, do the drop test to see what they sound like. Look at them under a loop to see if thye are polished or plated. If they are, you might get lucky and make a profit if they coin is rare. If not, place them in an album and start a new collection? you can't go wrong buying gold coins at spot. I bought a couple proof and UNC 1 ounce eagles that were used in a pendant and they were spot at about $300. Got them from a jeweler. Good luck!

construct

Actually, most of the modern counterfeits are made of gold, sometimes even higher than 90%. So they'll probably weigh close to correct, and they'll ring right, too. It's a good idea to know how to detect die-struck counterfeits when looking at jewelry gold. They can be pretty deceptive.

mhammerman

Thanks for all your excellent comments/advice. I'll post the outcome this evening.

mhammerman

Anatomy Of A Deal

Slow in getting the results of this deal to the coin public, but the results are in. It was the best of times, it was the worst of times. No pics just yet, maybe tomorrow. Here's the blow by blow:

Lady calls me (she knows I collect US Gold coins) and asks if I would buy her gold coins because she needs the money for a trip home to China this Summer to see her relatives. She describes the pieces, states that they were wedding gifts. So, Im thinking maybe counterfeit, maybe worth melt if genuine and maybe I could pick up a couple of dates for my collection, worst case is I get some gold for my bug itch. I've bought some collections before, in my wide-eyed collecting days...picked over crap is a generous description, I was hosed but it was a while back too. But, I'm in a buying position so I asked her to go to this dealer and get a price from him and I would pay 10% more than his offer.

She goes to the dealer. I've tried to sell there before (more than once) and he is so tight he squeeks and I know he's at least 20% back of any wholesale value so I'm not worried at this point. Mr. Dealer gives her a number for one bracelet of 2 1/2's (7) in a bracelet and another number for the $5 lib in a necklace and she calls me back in a couple of days and tells me the information. So, if she is truthful then I know they are not counterfeit and I know what the low buy price is for these items. So, I ask her about the visit to the dealer and what happened and her story seems about right. We arrange to meet for lunch and she tells me the number and it seems about right too, but I haven't seen them yet so I'm really just feeling my way around.

We meet and I brought my little pocket loupe and we're sitting down and she whips out this baggie (not the sealable kind, just a cheap baggie) and hands it to me. Sure enough, 7 nice little libs, all '88's that have been welded to a link at two points on each side...bummer except that the clasp is industrial strength, heavy, solid Chinese gold. I sprung one of the rings there to see what was inside and it was solid so all's good. The $5 is an au 53-55 1898 s in a screw down bezel that did a good job of protecting the coin. The 5 is full of original luster and only shows the wear a piece of jewelry would show, with virtually no dings. The bezel for the 5 is 24 K chinese gold also and the same for the links/clasp/chain for the bracelet. I'm saying it was 24 K but it might be 22 because it looks like the correct color as I recollect from previous excursions.

So, I get the stuff home and pull the 5...yummy. The 2 1/2's are just melt and doggy but if I can convince a buyer to strike the gold and give me the aggregate for the 24 K and the .12 oz pure for each of the 2 1/2's then there is some bonus in the deal. The Heritage auction results for the 5 pays for about half the deal. I won't talk about the amounts but suffice it to say that I received just over 1 3/4 oz of coin and jewelry for just over the cost of 1 oz pure. So, it was good. Some for her, some for me and a nice Mr. Dealer to help me out. It's a nice bracelet but too nice for a gift so...into the pile it goes.

I do appreciate the nice tips from board members and the pleasant experience from the seller. I'll put up some photos tomorrow. So, that's the story of the deal. Thanks all.

Saul Goode

coinguy1

<<I won't talk about the amounts but suffice it to say that I received just over 1 3/4 oz of coin and jewelry for just over the cost of 1 oz pure. So, it was good. >>

So, am I missing something, or did the seller receive roughly only $600 for approximately $1050 melt value in gold jewelry and coins? If, so, "good" sure doesn't apply to her results.

mhammerman

Actually, she got 10% more than the dealer was quoting her so not so bad for her and the number was just over $700.

mcheath

sounds kind of sketchy on both you and the dealers parts. selling your gold for 65% of melt doesnt sound so good to me.

coinguy1

<<So, am I missing something, or did the seller receive roughly only $600 for approximately $1050 melt value in gold jewelry and coins? If, so, "good" sure doesn't apply to her results.>>



<< <i>Actually, she got 10% more than the dealer was quoting her so not so bad for her and the number was just over $700. >>

Sorry, but based upon the information provided, it sounds as if she was not treated fairly, even if the dealer would have been even more unfair.

Would you be fine with the transaction if a dealer on this forum had been the buyer and a family member of yours had been the seller? Even if you would, I best most here wouldn't. Nor should they be.

VTCoins

Doesn't sound like too good a deal for the lady!

But the bracelet is likely 14K or 18K and not 22K-24K, and if the coins came from China thay may be counterfeit, so the deal may even out.

mhammerman

Thanks for the pointers, I will try to be more fair in the future. I believe that under the circumstances it was a good deal for all involved. If you know someone that is paying fair market value for second hand numismania or if you even know anyone that is paying full spot for unassayed gold, please share.

coinguy1

<< <i>Thanks for the pointers, I will try to be more fair in the future. I believe that under the circumstances it was a good deal for all involved. If you know someone that is paying fair market value for second hand numismania or if you even know anyone that is paying full spot for unassayed gold, please share. >>

I believe that most dealers will pay more than 2/3 of melt for such items. If you really care at all about being fair, there is nothing to stop you from giving additional $ to the seller in question. If you think 2/3 of melt was fair, why not start a thread asking what people think is fair and see what the average % of melt answer comes out to?

numisma

But, I'm in a buying position so I asked her to go to this dealer and get a price from him and I would pay 10% more than his offer.

That's pretty lame. You just assisted her in stealing his time. This happens to me quite often. I just deal with it, as it is a fact of life. The way I handle it is to ALWAYS offer my best price on everything. That's it. I even give a written offer and let the customer shop it around for a couple of weeks. Sometimes a dealer will say, "hey, I will give you $20 more than Dennis". Most people won't take it, but some do.........and that is bad kharma for them. If they do take it, then the dealer who just chiseled me is in for a surprise as I don't leave much room.

I have always enjoyed your posts and I like to be objective in circumstances like this. As such, I can understand why you would offer 10% over another dealer; you are afraid as you don't yet have the experience. I would close by saying that you should learn as much as you can.........if you want to be a dealer........and just be confident in your offers. You have the passion and the capability, but you just need more time and experience. Sometimes you will lose money, but that's the cost of your education as a dealer.

Good luck on your future deals.

michael

Sorry, but based upon the information provided, it sounds as if she was not treated fairly, even if the dealer would have been even more unfair.

Would you be fine with the transaction if a dealer on this forum had been the buyer and a family member of yours had been the seller? Even if you would, I best most here wouldn't. Nor should they be.

LALASD4

Would 10% under melt be a fair offer? I have something like that also, not looking to sell but would like to know.

topstuf

What kind of question is "Did I make a fair deal?"

It's YOUR deal and YOUR conscience and only YOU know the details of the transaction.

Asking seems to condemn it and asking for validation seems to cast doubt and be masochistic.

But, then, ....this is coins.