The real truth in selling Gold & Precious Metals…….

I have been buying gold from the public as a licensed dealer since 1992 and have worked in the industry prior to that. I have extensive knowledge about every aspect of the refining and precious metals business. With gold prices rising steady for the past 9 years now it has created a new aged gold rush. It is such a cluttered market at this point and it is the latest entrepreneurial get rich quick business as it is unique in the fact that the inventory you purchase at a heavily discounted rate is actually a currency in it’s own right, with built in instant equity…….Trust me that there is no other business that offers this instant profit formula and that is why there is no escaping the frequent attack of quick cash offer commericials, billboards, ads, email marketing, etc…….People are rushing to get your gold out of your hands for a fraction of what it is worth and bank the profits.

The gold buyers have a clear advantage over the standard consumer who wishes to sell their old jewelry for cash as the form it is in is not readily identifiable in terms of it’s actual value. It is really hard to take a pile of 10k and 14k gold chains, rings, bracelets, and earrings and know what its real market value is. One must first understand how the karat system applies to gold, then they must have a means to weigh their gold and most likely they do not have this knowledge. Furthermore, add the confusion of a host of different weight types and it becomes a foreign language barrier and leaves people basing their real gold value in terms of “well it seems like a lot of money for stuff I’ll never wear again”.

I probably buy gold from an average of 40 people per day for the past 3 years now. 2-1/2 of those years were 7 days per week so you can do the math and figure out that that is alot of people. Add in the rest of my over 20 years of customers and it becomes apparent that I have heard everything and have seen it all.

When selling gold, most consumers are their own worst enemies. Consumers do not take the time to calculate how much their lot is worth and this is the most important step in the process. If you do not know what your gold is worth then you really have no idea what a “good offer” or “fair offer” is.

I have built my reputation on paying very generous rates to consumers. I conisider myself to be an expert on precious metals and I believe I have a fiduciary duty to inform my clients of their metals market value and pay them just slightly less than a large lot customer such as a jeweler or pawnbroker would receive for selling directly to a refiner, such as myself. Currently, I pay consumers 85% of the value of their metal. I find this to be the highest consistent rate in the nation. I regularly see companies that promise more, but is is a smokescreen to get your gold in their hands, they will then apply age old tricks to get if for much less than what they promise.

The best way you can avoid this is to figure out exactly what you have and know it’s value before attempting to sell your gold. The average transaction in my store is probably around 8 or 9 hundred dollars but regularly reach the 5 to 8 thousand level. I would state that most people who were above the age of 20 during the early nineties probably have about $2000 worth of old gold and silver jewelry if they had in fact saved what the average person wore during that period.

When you see companies like cash4gold.com, and they offer a $100 bonus on top of the $150 they offer you for your gold, you are probably losing at least 500 or more dollars on the deal. Rule #1 is to never waste time dealing with anyone offering a bonus. A company that offers you a “bonus” is telling you that they are paying you less than they should and you need to avoid that.

You first need to call the dealers in your local area and ask them what percentage of the value of the market price they will pay you. If they are not willing to discuss this, then don’t waste your time trying to sell to them, they will rip you off if given the chance.

If you are able to find someone that is open to providing their payout rates, then before you go to them, take an inventory of the majority of your jewelry. You need to categorize it by it’s purity first, i.e., 10K, 14K, 18K, 22K, etc. Then, once that part is done, weigh everything in either DWT, GRAMS, or TROY OUNCES. If you do not have a scale available, go to a trusted jeweler and tell them that you are insuring your gold and you need to have it weighed, they should be happy to assist you.

Now that you have that information, you can easily figure out what your gold is worth. The price of gold changes constantly as market conditions dictate it’s value and supply and demand, as well as currency value, alter it’s value nearly every minute of the market session. If you need live gold prices, go to the ctgoldbuyers website and the prices update every minute. You can also use the payout table on the page as a reference as they are based on exactly 85 percent of the live metal price.

If you have to convert weights, use the following formulas:

There are 20 DWT’s in a Troy Ounce.

There are 31.1035 grams in a Troy Ounce.

What your goal should be is to figure out the actual amount of gold you have in troy ounces. You need to understand that karat gold used in jewelry is not pure gold, it is an alloy that consists of gold, silver, copper, nickel, zinc, etc. To figure out how much gold is in a particular karat, divide the karat by 24. The karat system consists of 24 parts of metal in whole. Take 14K Gold for example, it has 14 parts gold and approx. 4 parts copper, 4 parts nickel, 2 parts silver. If you divide 14 by 24, the result is .583 and that figure represents the amount of gold is in the alloy.

Therefore, if you have 26 Dwt’s of 14K Gold, divide 26 Dwt’s by 20 to get 1.3 troy ounces of metal. Now multiply 1.3 ounces by .583 and the result is .7579 troy ounces of pure gold. You can then multiply that by the current market price and at the time I am writing this, it is $1235. giving you a market value of $936.00

Here are the formulas for other karats:

8K .333

9k .375

10k .416

14k .583

16k (Dental) .666

18k .750

19.2k   .800

20k .833

21k .875

22k .916

24k .999 is pure gold!

Also, the price of metals on the market is always based on a troy ounce unless noted otherwise.

Anyway, I will finalize by saying that when you go to sell your gold, you give off signals to buyers that they can easily translate as to your knowledge of what you have. They are trained to take advantage of your tells, just like a professional poker player, and they will take as much as you will give them. Do not offer any expression, emotion, or information. Simply ask them what is their best offer as you are considering selling your gold. Tell them you plan to get other prices too.

I hope that by the time you make it to a buyers desk, you first know the current market value of your gold. You will be surprised to at the amount of misinformation buyers will provide you in trying to manipulate you so they can get if for much less than it is worth.

You will find it very satisfying to know you have gotten the real highest price for your gold and your bank account will notice it too.

If you have any questions call met at (877) 289-3071 as I often advise clients and people that are not clients as I wish my industry was more honest as in the end, it makes a much better market place if people trust in gold and feel safe that it is a sound investment and they will not get ripped off during any part of the process.

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About CT Gold Buyer
Owner of CT Gold Buyers in Wallingford, CT. and USA Gold Refiners.....

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