WHAT'S YOUR GOLD WORTH.?
By Alan Hassell?
Copyright ? 14/3/98 All rights reserved,
no part can be published without authors written consent.
Readers are allowed to save file or print out for own use only.
It's a question we all ask ourselves about a minute or so after anyone recovers any object made of Gold, What is it worth?. Although we, daily get the Gold price on television and other media sources the price is unfortunately in U.S. dollars that does not give the average guy a clue what its worth in Australian currency.
Although one Melbourne newspaper does convert the gold price to our currency not everybody reads it. Anyone using a simple calculator can by using a simple formula convert U.S. gold price to Australian.
What is essential is knowing the value of the Australian dollar on the day. This again is given during the news reports and should be noted on a piece of paper together with the gold price.
The secret is to take the decimal point separating dollars from cents and bring it forward 2 points.
With the decimal point now at the beginning we can come up with a quick accurate method of what gold's worth in Australia. Simply divide the price of gold with the price our dollar, i.e. .7365 divided by $385.00 = $522.74. From this, we can then work out what our gold is worth per gram.
There are 31.2 grams of gold to the TROY ounce so using the divisional button simply divide $522.74 by 31.2 and we come up with $16.75. This is the price of pure 24 carat gold, not variants such as 9, 18 or 22 carat gold.
We must break these figures down to come to a satisfactory price again. When jewellers use 9-carat gold, it is made up of .375 parts of gold and 625 parts of another metal such as copper.
This is done to make the metal more durable also affordable, enabling a greater percentage of people to purchase something made of gold. Therefore, we can only value 9 carat on its true gold content. Multiply 16.75 by .375 and you will come up with $6.28. 18 carat contains .750 parts of gold and 22 carat contains .925, using the same method as demonstrated one can get values of all known gold alloys.
Knowing this is the most essential part of getting the best value from your gold. I should point out here, this was written for the Aussie market, Americans and other nationals can easily find the decimal factors for 10 carat, 14 carat and so on and use the same principles.
I added this today 14/03/98 12:14:51 in order not to confuse certain people. Jeweller's, Second hand dealers love to buy gold, especially when in the form of jewellery such as rings.
Manufacturing jewellers use a lot of gold as such; they rely heavily on individuals selling their old gold to them.
However, they will only pay about half of the gold price if that in some cases.
Cash Converter's are real parasites at taking advantage of the misfortunate individuals desperately seeking money. They only offer a mere $3.00 per gram for 9 carat gold, the same as what some rouge jewellers do.
That is half of what the metals worth, they also forget the article had been manufactured into an object of beauty. This takes time and is labour intensive, that's why a ring containing say 3 grams of gold will appear in their windows for $45 to $65 or even more.
They are not fools but think every individual who walks into their shops is.
The object you have for sale has no value to them because they do not own it and cant sell it. Reverse the situation, however and once they own it after you reluctantly parted with it for a mere pittance, it becomes theirs to sell.
The big dollar signs flash in their eyes, PROFIT so the 9 or 10 dollars you got for your ring will be displayed in their widows a week later for $45 plus. Reaping a massive 350% profit for such a small initial outlay.
This is only one example but the same applies to other jewellery items. Diamonds for example they only offer $2 a point, try buying a carat diamond for that. One carat is a hundred points and wholesales at over $1000.00 plus sales tax. It is not that they are doing anything illegal, they are not.
That is business and it's been going on for centuries. During the Second World War, Nazi's did terrible things to the Jews.
Many Jews fled the country, when they did, many of them carried a suitcase full of golden objects. This is because gold is an international currency more stable than paper.
Inflation was such that people actually used wheelbarrows full of paper money just to buy a loaf of bread. Now you can see their logic, apart from the fact of changing currencies over. Gold on the other hand is worth money no matter where you are.
Almost everyone associated in the jewellery trade or second hand, market will buy your gold if you weaken and sell it on his or her terms. The secret is as much as you can for your goodies. Not all the rings you find will bring what you expect especially if they have been engraved inside the ring.
Rings such as this you will have to sell for scrap value. You could of course, keep these rings until you have sufficient weight to make a sale profitable.
You are pitting your brains against so called experts who more likely than not have had a great more experience in dealing with the public, overcoming all objections you can throw at him. Therefore, you have to have the skills to talk and negotiate on their own level.
Therefore, it helps if you know what the gold price is on the day you intend to do business. This is in the newspapers so you should be armed with one together with a trusty little calculator.
Never trust the buyer's calculator, it could be rigged in his favour, after all he's the one pumping in the information and he's more experienced at it than you.
Therefore, you have to be just as efficient with a calculator as he is. If he comes up with a price that you know is wrong, work out your own calculations and show him how it should be done.
He cannot argue with that. There is an old saying, 'if you can't baffle them with science baffle them with bulldust'. He is out to get your gold for as little as he can. Otherwise he has to buy from wholesalers at the Gold price plus sales tax; many of these guys have a Sales Tax numbers and pay tax on the finished article.
They still have to keep records even when purchasing second hand gold. If you're not asked to fill in a second hand book, you can be sure he's not going to put it through his books.
However, he will still be trying to get it for next to nothing. For a start, you have the upper hand, you have the object, before you do anything at all, it should be cleaned professionally, so it looks like its just come out of the workshop and can go straight into his window.
Presentation is all-important, so if you have a little box to place your goodies on, so much the better. Many of these guys have Reps calling on them too, they present their products in a professional manner and so should you.
This puts you out of the class of the average guy off the street with scrap gold for sale.
Remember as an item of jewellery your object is worth far more than gold content how high you can go above gold price depends on the item.
I try to get at least 25% above gold price, a mate of mine tries to get 50% depending on the object.
So where can you get good prices for your gold?. Markets and stall traders selling second hand jewellery are a good place to start. Once you have built up a business relationship with an individual, you will find they look out for your visits.
Then you have various Trading Post magazines that investors and collectors scan through for bargains. There is also your friends and word of mouth, which is perhaps the best method of dealing and making sales.
People cant resist bargains especially if the price is right and it looks good enough. Everyone loves jewellery, but not everyone can afford the prices asked in shops. Who can resist a bargain?. Gold always increases in value, if you are young do not need the money, why sell it. Better, you hang onto it as a form of superannuation.
One day, the gold price might hit the heights, of the early eighties and reached $1000 dollars an ounce.
So it's not such a bad investment after all, providing you live that long to enjoy and appreciate the rise.
One last tip, once you start to weaken during a deal, the buyer will read this and think he's got the upper hand and won the deal. If you have, any doubts do not weaken, you can always say, 'thanks for the offer, I'd prefer to think it over before parting with it'.
You might get a better deal up the road, never sell an item on the first offer you get. Get several before you make a decision, sometimes it pays to go back to someone a second time to see if he's prepared to match or increase his last offer. Sometimes it pays, sometimes it does not but once you part with your item, it has gone.
The decisions yours only you can make that decision, product knowledge is essential if you want to be successful. You have to be strong to get the best price for your items, if you're weak, then those guys out there will love you and take you for a sucker every time.
You just have to be realistic, you're not going to get full retail price, after all the dealers got to make a profit too, if he cant see that then you just wont be able to sell. You can expect between 25% to 33.3% of valuation as a realistic price, well there you have it the rest is up to you. Happy Hunting. ?
All the above prices and gold vales were made for the UK and Australian Gold used in those countries, Americans who have 10crt 14 crt and so on will have to work out what their gold is worth.
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