General Question

elbanditoroso's avatar

How do those "we buy gold" storefronts work? Do you really get fair values for your stuff?

Asked by elbanditoroso (33577points) August 19th, 2013

Not far from where I live, two of those “we buy gold” places have opened up. (I think there used to be more when gold had a higher price, but ..)

I’ve never been into one of these and I only own one thing of gold, but I am curious about how these places work.

My assumption is that they have scales and weigh your jewelry, somehow take into account the purity of that gold, and then make you an offer. But is their offer based on today’s gold price? Or is based on some (less than generous) pricing scheme?

Other than to get quick cash, is this a fair and honest mechanism?

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7 Answers

flip86's avatar

Those places are like pawn shops. They low ball you and hope you’re desperate enough to accept.

LuckyGuy's avatar

Here is a review of 7 mail-in companies. They did an experiment and sent 7 places an identical gold ring and a silver dollar. The prices ranged from $55 to $158. Quite spread.
If you are interested get an estimate – then take your stuff and walk out of there.

poisonedantidote's avatar

Those stores are a scam, the best place to take gold is to a scrap metal dealer, you will get the best price.

Here, you will get 12 bucks (€uros) for a gram of gold at the local gold shop, if you take the same gram of 18k gold to a scrap dealer you will get 32 bucks.

In my opinion, these stores are just there to strip people of any wealth they may have.

Jeruba's avatar

Very interesting and surprising, @poisonedantidote. You sure are savvy about a lot of things.

Can anyone confirm that the same is true in, say, the U.S.? I’m curious now too.

SadieMartinPaul's avatar

A related subject, but a bit of a tangent:

During my ongoing work to clear-out my mother’s property and prepare it for sale, I cleaned a storage shed. I found a bag full of what I think are copper slugs. (No, my parents weren’t thieves, and they didn’t use slugs! The items were likely leftover from a previous owner.)

How can I find out if these items are, indeed, made from copper? Where should I take them for sale?

gambitking's avatar

Watch the South Park episode titled “Cash for Gold”, they do a great job of explaining it all, plus it’s hilarious.

These guys are basically just rolling the dice on the chance that you’ll sell to them at a low price in exchange for the convenience.

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