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Trading in some of my gold finds - Price per gram.

PghpetePghpete Posts: 206 ✭✭✭
in Metal Detecting
I'm thinking about jumping on the selling of junk gold bandwagon. Throughout the years, I've found around an ounce of gold in various karat weights. I have a couple of questions though concerning getting a fair price. I called three different coin shops and/or places that buy/sell gold. On average, they're offering $8/gram for 10k, $12/gram for 14k, and $16/gram for 18k. Knowing that 10k = 41.6% pure, 14k is 58.3% pure, and 18k is 75% pure, help me out with a math problem.

Based on $1000/oz, If I have a troy ounce of 10k gold, I have 31.1G. 31.1G X $8 = $248.80. If 10k gold is 41.6% pure, then shouldn't my ounce of 10k gold be worth $416? I understand the dealer needs a cut, I was figuring 5-10% from the spot price, which would still leave me with with approx. $385 wouldn't it?

Am I using faulty math logic, or are these "dealers" not playing fairly? Thanks.

Comments

  • DUBBADUBBA Posts: 935
    here's the fast and easy way to figure out what ya got....hh

    http://www.dendritics.com/scales/metal-calc.asp?WeightU=7.8&Units=dwt&Alloy=18K&PrOzt=&CurrencyN=USD&Markup=0
    "see ya at the beach"
    imageimageimageimage
  • PghpetePghpete Posts: 206 ✭✭✭
    Thanks Dubba,

    By plugging in the same numbers as my example, I come up with the same results. So unless, I'm missing something in the equation, or how much these dealers charge for their efforts, then $375 for an ounce of 10k gold is a fair price, but certainly not the $248/Oz, ($8/gram) they're offering.
  • mrgubymrguby Posts: 684
    better do it soon the market is about to run wild wall street is in a panic!!!!!!!!!!!!!!
  • BentForkBentFork Posts: 829
    I don't know what percentage a dealer will take, but apparently what they effectively will give you is the $8/gram for 10K. Midwest Refinery pays 94% of the amount of pure gold. That being the case, if you sold to them at $1000/oz you would get .94 X 416 (.416 of 1000) = 391.04 Back in the 80s when silver went nuts (Thank you, Bunker) local silver dealers were capitalizing on people who wanted to cash in. Most of those dealers were no more than pawn shops in reality. They masked themselves as "Jewerly Exchanges".

    G.
    imageimageimage
  • DUBBADUBBA Posts: 935
    sounds like that offer to buy your gold is a little low....yeah! by about a hundred dollars...scumbags!......you can go the midwest refinery route or find someone local that won't take more than 10-15 % ...good luck...hh
    "see ya at the beach"
    imageimageimageimage
  • PghpetePghpete Posts: 206 ✭✭✭
    Thanks everyone, I knew it was too good to be true to think that I'd be able to get a fair price. I called two of the "dealers" armed with the formula I mentioned in my first post. One of the dealers was a "gold and coin exchange". He mentioned that the $8/gram for 10k was what the called the "pawn price", and that they sell my gold up the ladder to an outfit that does the melting. The other guy was a coin dealer, he justified his price of $8/gram for 10k because he claimed he had to hold onto any gold he received for 21 days to ensure is wasn't stolen. He then would pass his gold on to the melter too. I asked about places that have been on TV lately (Goldkit, etc.), he said I'd be lucky if I get $5/gram for 10k from outfits like them. So, in summary, an ounce of gold is worth an ounce of gold until you try to sell it.
  • BentForkBentFork Posts: 829
    Yep, that's as I thought. Everyone along the line gets a taste of it. That's why I use Midwest. I haven't used them in awhile, but most folks do and they are up front with you. Since you're going directly to the smelter you'll get the best return. No middle man.

    G.
    imageimageimage
  • loditomloditom Posts: 684
    Pghpete go to Midwest refinerie's,they take 6% and you get the other 94%.
    No other charges and they can have a check back to you in 5 day's.
    You can look them up on line and it tells all about them and the way they do it.

    HH,Tom
    image
  • DUBBADUBBA Posts: 935
    i have never sent to midwest or any other refinery for that matter....i deal with a local jeweler who takes 15% off the days price....if i want to sell, i get my money today.......good luck...hh
    "see ya at the beach"
    imageimageimageimage
  • BBQnBLUESBBQnBLUES Posts: 1,803 ✭


    << <i>Pghpete go to Midwest refinerie's,they take 6% and you get the other 94%.
    No other charges and they can have a check back to you in 5 day's.
    You can look them up on line and it tells all about them and the way they do it. HH,Tom >>



    I have to chime in on this matter since I am waiting for "Midwest Refinaries" to _PAY-UP !!!

    On 3/4 mailed a pkg containing 6.96 troy oz Gold nuggets & a chunky 14KT gold ring...

    Pkg arrived 3/8...
    On 3/14 I called Gary to ask when check was mailed...
    They hadn't even refined it <grrr>

    As of today 3/20 still NO $$$$ as I watch gold plummet in value...
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