The Fine Print in sending your metals to a refiner
pcgs69
Posts: 4,331 ✭✭✭✭
I recently sent in some jewelry and sterling spoons to a very well known and respected refiner and got quite the education on payment prices . I figured I'd share, so others have a more realistic expectation of payment amount than I had. This was my first time.
First, you need to keep in mind that even though your jewelry is stamped 10k or 14k, it may in fact contain less gold than indicated. Your 14k gold chain may only be 13.9k, etc. This will lower the amount of payment you're expecting.
There is also 2-4% loss when melting (quoted by Midwest on the phone). This will further lower the amount you receive.
Obviously the "settlement" date has an impact. Mine had "2/23/10" for a settlement date printed on the invoice, but then had a handwritten "4" over the "3." Gold was lower on the 24th than it was on the 23rd. Not sure why they delayed settlement by a day, but I have a theory...
Also, their scales will vary from yours as well. Your 20.4 grams may be 20.1 grams on their end.
Edited to add: don't forget the cost of shipping to them as another added expense. That cost another 1%.
For example. I sent in 4 sterling spoons with a gross weight of 3.31 troy ounces (according to my scale). 3.31 x .925 = 3.06 troy ounces of pure silver. 3.06 x the 90% pay rate = 2.75 troy ounces of pure silver. The settlement spot price was $15.75. $15.75 x 2.75 = $43.31. Their scales showed 3.01 gross troy ozs and somehow they ended up paying $36.00.
I also sent in some gold jewelry... and got 9% less than I expected using their payment % model and gold market price indicated.
So, just keep in mind all of the unknowns and variables when sending metals in to be refined. It may, in fact be better to suffer through eBay's fees and come out the same, or maybe even a little ahead.
Just wanted to share my first experience with refining. Next time I'll reduce my expectations by 15%.
First, you need to keep in mind that even though your jewelry is stamped 10k or 14k, it may in fact contain less gold than indicated. Your 14k gold chain may only be 13.9k, etc. This will lower the amount of payment you're expecting.
There is also 2-4% loss when melting (quoted by Midwest on the phone). This will further lower the amount you receive.
Obviously the "settlement" date has an impact. Mine had "2/23/10" for a settlement date printed on the invoice, but then had a handwritten "4" over the "3." Gold was lower on the 24th than it was on the 23rd. Not sure why they delayed settlement by a day, but I have a theory...
Also, their scales will vary from yours as well. Your 20.4 grams may be 20.1 grams on their end.
Edited to add: don't forget the cost of shipping to them as another added expense. That cost another 1%.
For example. I sent in 4 sterling spoons with a gross weight of 3.31 troy ounces (according to my scale). 3.31 x .925 = 3.06 troy ounces of pure silver. 3.06 x the 90% pay rate = 2.75 troy ounces of pure silver. The settlement spot price was $15.75. $15.75 x 2.75 = $43.31. Their scales showed 3.01 gross troy ozs and somehow they ended up paying $36.00.
I also sent in some gold jewelry... and got 9% less than I expected using their payment % model and gold market price indicated.
So, just keep in mind all of the unknowns and variables when sending metals in to be refined. It may, in fact be better to suffer through eBay's fees and come out the same, or maybe even a little ahead.
Just wanted to share my first experience with refining. Next time I'll reduce my expectations by 15%.
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<< <i>So in summary, you didnt do quite as well as you thought, but probably twice as good as the alternatives such as Cash for Gold. In fact, I bet you did even much better than any pawn shop, jewelry store, or coin shop would have done. Afterall, they probably ship it to where you sent your stuff, and they need their cut too! >>
Yes, certainly a much better alternative than the local pawn shop, jewelry store, Cash for Gold. And the transaction was very easy. Send them gold and they cut you a check. Don't have to worry about chargebacks, etc from eBay. I just didn't know of all of the other variables in having it melted.
I've seen accounts about sending scrap to Midwest for several years in the metal detecting community, and the consensus is always the same: Maybe not quite as much as you would expect, but within reason given variances in weight, possible purity questions, and even things like the weight of stones in jewelry, etc.
Given your experience, pcgs69, are the variances / tolerances within reason enough for you to use Midwest again?
--Severian the Lame
<< <i>Thanks for posting your experience. I think your explanations make sense and are well reasoned.
I've seen accounts about sending scrap to Midwest for several years in the metal detecting community, and the consensus is always the same: Maybe not quite as much as you would expect, but within reason given variances in weight, possible purity questions, and even things like the weight of stones in jewelry, etc.
Given your experience, pcgs69, are the variances / tolerances within reason enough for you to use Midwest again? >>
Since it was my first time, I don't know of the results were typical or atypical. Next time I have some old jewelry/sterling, I'll post it on the BST forum here since it's free, and you can control the selling price. If that doesn't work, I'd try to estimate a rough ebay selling price and subtract the applicable fees and try to compare with what it may be worth at a refiner (by taking my initial refiner expectations and subtracting about 10%). If a quick sale was needed with no worries about the buyer returning, a refiner would be a good choice. It's just that there's no guarantee on what you'll receive for payment.