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Old 01-19-2011, 05:51 AM
An Gadaí An Gadaí is offline
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How much gold do people typically own? (Q re: gold buying outlets)

There are currently at least 3 if not 4 gold buying outlets in my hometown of about 40,000 people. 5 years ago there were none. 3 year ago there was 1 and now a relative explosion of them. I'm curious how these are viable businesses. I know times are tough for many people here and they're looking for cash but in the first instance how much gold is lying around in people's houses that it is worth renting a premises to target them. I understand the mail order method and that too is used here but an actual store whose only purpose is CASH 4 GOLD, in a smallish town seems completely unviable to me.
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  #2  
Old 01-19-2011, 07:26 AM
samclem samclem is online now
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I can only give you an answer that relates to our operation in Northern Ohio/USA.

The average person brings in over $200 worth of gold, but we might get 50 of those/day. If someone just has an old wedding band, it might only be $50-$100. Some women have quite a few chains, bracelets, earrings, etc. and more than a few walk away $500-1500. But what's important is what percentage of the scrap value you pay.

We pay about 75% of what it scraps for. Smaller places pay anywhere from 15-60% of final value. Our local cash4gold stores pay about half of what we do. So, for every $100 they spend, they make $200 on the transaction. Not a bad return.
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Old 01-19-2011, 07:37 AM
Manda JO Manda JO is offline
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Note, too, that gold prices have tripled since 2001. So in addition to times being hard, that old wedding ring from your first marriage that has been rattling around in the back of your jewelry box is suddenly worth the bother of selling.
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Old 01-19-2011, 07:44 AM
Keeve Keeve is offline
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I've sold a bit of my jewelry in these places over the years. One of the things that strikes me is the low overhead that these places seem to have. They do have to pay rent, but how much beyond that? They need some sort of table or desk, and a really good scale to weigh the gold on, and whatever chemicals are needed to test the gold. Beyond that, there's no investment needed. They can stick around for as long as the neighborhood has gold to sell, and then they leave. I mean, it's not like a retail store where they need all sorts of shelving and shopping carts and cash registers.
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Old 01-19-2011, 07:56 AM
Susanann Susanann is offline
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How much would a gold tooth get from a gold buying outlet? I have my uncles old tooth, but I dont know if it is worth taking it in.

Last edited by Susanann; 01-19-2011 at 07:57 AM..
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  #6  
Old 01-19-2011, 08:01 AM
Boyo Jim Boyo Jim is offline
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Was your uncle a walrus?
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  #7  
Old 01-19-2011, 08:27 AM
Cluricaun Cluricaun is offline
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Quote:
Originally Posted by Keeve View Post
I've sold a bit of my jewelry in these places over the years. One of the things that strikes me is the low overhead that these places seem to have. They do have to pay rent, but how much beyond that? They need some sort of table or desk, and a really good scale to weigh the gold on, and whatever chemicals are needed to test the gold. Beyond that, there's no investment needed. They can stick around for as long as the neighborhood has gold to sell, and then they leave. I mean, it's not like a retail store where they need all sorts of shelving and shopping carts and cash registers.
For whatever reason a lot of gas stations around here have gone bust in the last 5 or 6 years and the gold places like to set up shop in them. I imagine that the overhead to rent an abandoned gas station is pretty cheap. I'll bet that they can make their monthly nut in less than a days worth of business.
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Old 01-19-2011, 08:35 AM
Susanann Susanann is offline
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How much would a gold tooth get from a gold buying outlet? I have my uncles old tooth, but I dont know if it is worth taking it in.
Quote:
Originally Posted by Boyo Jim View Post
Was your uncle a walrus?
No.
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  #9  
Old 01-19-2011, 08:48 AM
Maastricht Maastricht is offline
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A store offered me 10 dollar for an old gold man's plain wedding band. It wasn't flimsy.

That had to be too little, no?
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  #10  
Old 01-19-2011, 08:57 AM
Alka Seltzer Alka Seltzer is offline
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Gold is currently selling for about £27/$43 a gram. Not sure how pure or how heavy a gold tooth would be, a few grams maybe?

When selling gold for scrap, you'll be offered a fraction of it's scrap value. I've heard that Jewellers generally offer the best rates (up to 75% maybe?), while the mail in firms can offer as little as 10%.

Last edited by Alka Seltzer; 01-19-2011 at 09:00 AM..
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Old 01-19-2011, 10:05 AM
Zsofia Zsofia is offline
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Some comedian had a funny bit about, oh god, times are hard - they're cutting the water off tomorrow and we might get evicted if we can't come up with some cash... oh, I forgot about all that pirate treasure in the basement!
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  #12  
Old 01-19-2011, 10:36 AM
Cluricaun Cluricaun is offline
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Originally Posted by Maastricht View Post
A store offered me 10 dollar for an old gold man's plain wedding band. It wasn't flimsy.

That had to be too little, no?
I have a buddy who's been married a few times and still had his wedding ring from a previous marriage rattling around in his house. His new wife wanted it gone - now - so he gave it to me and just told me to get rid of it, he didn't want anything for it. I took it to three different places - a Cash4Gold proper, an estate buyer, and a jewelry store. Cash4Gold offered me $15 straight out. The estate buyer offered me $75 and the jeweler offered me $10 towards a new purchase, so nothing really. It would seem there's a bit of variance in what different places will offer so it may pay to shop around. This band was from a Mall Jewler and is white gold with diamond chips set in it and he paid $1600 for it, so I just kept it. It's in a pint glass on my dresser with some assorted baubles and coins.
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Old 01-19-2011, 11:55 AM
Maastricht Maastricht is offline
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Cluricaun, indeed! From 1600 to 10 bucks in a few years...some investment, eh? i guess a ring like that would be bring more if sold on e-bay.
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  #14  
Old 01-19-2011, 12:59 PM
Keeve Keeve is offline
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Originally Posted by Alka Seltzer View Post
Gold is currently selling for about £27/$43 a gram. Not sure how pure or how heavy a gold tooth would be, a few grams maybe?
Everyone should keep in mind that when such prices are quoted, that is for pure gold. Jewelry is often 18 karat, which is only 75% gold. Therefore, if someone would have one gram of 18k jewelry, and was offered £20/$32, that would represent zero profit, and anyone thinking otherwise should readjust his thinking.
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Old 01-19-2011, 01:16 PM
Cluricaun Cluricaun is offline
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Originally Posted by Maastricht View Post
Cluricaun, indeed! From 1600 to 10 bucks in a few years...some investment, eh? i guess a ring like that would be bring more if sold on e-bay.
Well he bought it at perhaps the worst possible place, a chain jewler. I have family in the jewelry business and I know from them that they A.tend to sell inferior product and B. tend to mark things up into the stratosphere.

If I take the $75 offer for the ring as being a fair one that means it was probably worth between $100 and $150 worth of gold. The diamonds aren't worth squat to a gold buyer, so figure in maybe $100 worth of diamonds on top of that and you're looking at a ring that was maybe really worth $250. Add in a few thousand percent markup and voila, $1600 mens wedding band.
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Old 01-19-2011, 07:53 PM
samclem samclem is online now
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Quote:
Originally Posted by Susanann View Post
How much would a gold tooth get from a gold buying outlet? I have my uncles old tooth, but I dont know if it is worth taking it in.
We buy dental gold as 16K but really old stuff is probably closer to 18K. It really depends on the weight. We pay $24/gram for yellow dental. White dental we don't buy.
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  #17  
Old 01-19-2011, 08:01 PM
samclem samclem is online now
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Quote:
Originally Posted by Cluricaun View Post
I have a buddy who's been married a few times and still had his wedding ring from a previous marriage rattling around in his house. His new wife wanted it gone - now - so he gave it to me and just told me to get rid of it, he didn't want anything for it. I took it to three different places - a Cash4Gold proper, an estate buyer, and a jewelry store. Cash4Gold offered me $15 straight out. The estate buyer offered me $75 and the jeweler offered me $10 towards a new purchase, so nothing really. It would seem there's a bit of variance in what different places will offer so it may pay to shop around. This band was from a Mall Jewler and is white gold with diamond chips set in it and he paid $1600 for it, so I just kept it. It's in a pint glass on my dresser with some assorted baubles and coins.
What do you call "chip" in reference to diamonds? If they're really that small, and the band is 14K, there's little likelyhood it really cost him $1600. It was probably tagged with that retail price, and he got it for $700-1000. Still a rediculous price.

The fact is, you still only have about $75-150 in gold. And that's all it's ever gonna be worth on the resale market.
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  #18  
Old 01-19-2011, 10:28 PM
Princhester Princhester is offline
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If there is a readily available and known "scrap value" what does it take to access that market? There must presumably be barriers to entry or people would just sell directly into that market rather than accepting 25% (or greater) less than the known "scrap value".
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Old 01-20-2011, 07:27 AM
samclem samclem is online now
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Originally Posted by Princhester View Post
If there is a readily available and known "scrap value" what does it take to access that market? There must presumably be barriers to entry or people would just sell directly into that market rather than accepting 25% (or greater) less than the known "scrap value".
It's available, but not generally known to the average person. It would involve sending your stuff away through the mail and trusting the firm at the end would give you what you had coming. Most people won't do that.
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Old 01-20-2011, 09:13 AM
clairobscur clairobscur is online now
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Originally Posted by Cluricaun View Post
If I take the $75 offer for the ring as being a fair one that means it was probably worth between $100 and $150 worth of gold. The diamonds aren't worth squat to a gold buyer, so figure in maybe $100 worth of diamonds on top of that and you're looking at a ring that was maybe really worth $250. Add in a few thousand percent markup and voila, $1600 mens wedding band.

You forgot the work needed to transform a bit of gold and some diamonds into a wedding band.
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  #21  
Old 01-20-2011, 09:44 AM
Cluricaun Cluricaun is offline
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^^^ The work is nice, but of little actual value especially on a mass market piece.

Quote:
Originally Posted by samclem View Post
What do you call "chip" in reference to diamonds? If they're really that small, and the band is 14K, there's little likelyhood it really cost him $1600. It was probably tagged with that retail price, and he got it for $700-1000. Still a rediculous price.

The fact is, you still only have about $75-150 in gold. And that's all it's ever gonna be worth on the resale market.
The "chips" in that ring are pin head sized stones and there are probably 9 of them. It's also white gold, which would have commanded an additional Mall Premium most likely. Add in the fact that he lives in Cook county Illinois and there's a 10% sales tax and I can see him paying in the $1500's for it and rounding up his number.

Last edited by Cluricaun; 01-20-2011 at 09:45 AM..
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  #22  
Old 01-20-2011, 02:59 PM
Broomstick Broomstick is offline
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Quote:
Originally Posted by An Gadaí View Post
There are currently at least 3 if not 4 gold buying outlets in my hometown of about 40,000 people. 5 years ago there were none. 3 year ago there was 1 and now a relative explosion of them. I'm curious how these are viable businesses. I know times are tough for many people here and they're looking for cash but in the first instance how much gold is lying around in people's houses that it is worth renting a premises to target them. I understand the mail order method and that too is used here but an actual store whose only purpose is CASH 4 GOLD, in a smallish town seems completely unviable to me.
All I can tell you is my personal experience.

After many years of adulthood/marriage/being related to in-laws that don't believe in banks, my spouse and I had acquired some gold. I will point out that this was NOT jewelry type gold, not the cheap 14 karat stuff that seems on sale everywhere. This was gold purchased in good times as an investment, actual hunks of metal, some of it gifts from the in-laws-who-don't-believe-in-banks. Also, a stash of dental gold - said in-laws apparently don't much believe in brushing teeth or dentists either, many acquiring gold dental work before finally surrendering their teeth and getting dentures. We inherited some of this dental gold, believe it or not.

Now, it's no secret we've fallen on hard times here at the Broomstick household, and at a certain point we decided to cash in our gold hoard.

We did NOT go to the pop-up little shops, we did not send anything through the mail. We went to jewelers, and shopped around. We finally settled on a local guy who's been here something like 25 years and has been buying/selling gold, coins, jewelry, and the like during that time. He assayed our items, explained how much actual gold was in each piece, and gave us 75% of the value of that gold. Realistically, that's about as much as Joe Public is going to get because the dealer needs to cover his overhead and make enough to live on himself.

Now, our items were all 18 karat or better - that's quite different than 14 karat chains that are common gold jewelry. We also had a significant amount. We received a sum comfortably in the four digits for our stash, which altogether weighed about two ounces.

A couple notes here:

1) Our gold was high quality - meaning it was high gold content, not little works of art. You don't get squat for the artistic value when you sell gold in this manner.

2) For dental gold you don't have to remove it from the teeth. Actually, it's almost better if you don't because then it's obvious to all concerned what sort of gold it is.

3) 14 karat jewelry frankly isn't worth much. There's not enough gold per unit of weight. Gold jewelry that has truly high value isn't common, isn't sold at a mall kiosk, is expensive, and is heavy. It also is somewhat delicate, being softer than 14 karat, which is one reason 14 karat became popular for jewelry - it wears better. Sure, you have some 14 karat stuff you don't want, go ahead and get some money for it, just be aware it's probably not worth as much as you might think it is.

4) Gold buyers, as previously noted, range all over the place. Some give you as little as 10% gold value. Others, more commonly from what we found, give 25-40% of value. You CAN get a higher return - we did, after all, get about 75% - but you will have to shop around, ask questions, and do some research.

5) In my opinion/experience the companies advertising on TV are rip-offs. The little pop-up businesses mentioned by the OP frequently are as well. They make their money off people who want a fast buck but can't be bothered to research. They also may or may not be happy to deal in items of dubious legality (that is, they may be acting as a fence for thieves). You want to go to someone who's been around awhile, has a good reputation, is willing to explain why he is valuing your items as he does, and will pay a high percentage of the gold value.

6) The little pop-up shops mentioned in the OP are viable because they're making a large profit margin off people who aren't well informed, who are desperate, or who are selling stuff they stole. If they give the seller 10-20% on the true gold value they're pocketing most of the rest. And, as someone else noted, they're pretty mobile. When a local market dries up they can just go elsewhere and do the same thing.
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Old 01-20-2011, 03:06 PM
Broomstick Broomstick is offline
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Quote:
Originally Posted by Alka Seltzer View Post
Gold is currently selling for about £27/$43 a gram. Not sure how pure or how heavy a gold tooth would be, a few grams maybe?
Gold alloys used in dentistry range from 10% to 90%+ gold. So it's impossible to say without examining the item in question.

My in-laws favored a high gold content for their dental work. Or at least their dentists did. In this case mileage certainly WILL vary.

As samclem noted, some places will simply buy all dental gold as if were a specific karat value. The guy we went to actually analyzed our gold to determine it's actual karat value, which ranged from 18-20 karats for the dental work.

Last edited by Broomstick; 01-20-2011 at 03:08 PM..
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  #24  
Old 01-20-2011, 04:45 PM
Deeg Deeg is offline
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What about selling it to other gold bugs? I'd think one would get near full price if you could verify its weight/quality.
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  #25  
Old 01-20-2011, 09:50 PM
Superhal Superhal is offline
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Back to the original question: when times are hard, people sell things. When times are really hard, people sell things for far below what they are worth. Therefore, those small gold buyers are making a huge amount of profit by paying a fraction of what the item is worth. It doesn't have to be gold, it could be golf clubs, computers, shoes, etc.

The same phenomena happened in my area, but instead of gold buyers it was pawn shops.
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Old 01-20-2011, 10:13 PM
Chronos Chronos is offline
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Most of the cash for gold places I've seen are pawn shops. If you've already got the premises and everything anyway, it's basically no effort at all to set up a side line to your business.
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Old 03-07-2013, 10:05 AM
Anaamika Anaamika is offline
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Originally Posted by Keeve View Post
Everyone should keep in mind that when such prices are quoted, that is for pure gold. Jewelry is often 18 karat, which is only 75% gold. Therefore, if someone would have one gram of 18k jewelry, and was offered £20/$32, that would represent zero profit, and anyone thinking otherwise should readjust his thinking.
What happens if you have 22K gold? I have several pieces I've been thinking of trading in. I'd want to go to an Indian jeweler, though, just because I want Indian jewelry.
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Old 03-07-2013, 12:28 PM
md2000 md2000 is offline
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From what I found for comparison of gold coints - is this right?

A 1/2OZ is about the size of those president dollar coins.
A 1/10OZ is about the size of a dime and the thickness of a penny?

And keep in mind, unless it is pure gold, what you have is diluted to 50% or 75%.
Also, a lot of "gold" jewelry may be only be plated.

As to the OP - I suspect since gold has jumped significantly in the last decades and the economy has been in the toilet, people see an opportunity to make quick money by getting others to empty out their jewelry box. People could have $100 items from decades ago that could be worth 4 or 5 times that now.
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Old 03-07-2013, 12:58 PM
Really Not All That Bright Really Not All That Bright is offline
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Originally Posted by Anaamika View Post
What happens if you have 22K gold? I have several pieces I've been thinking of trading in. I'd want to go to an Indian jeweler, though, just because I want Indian jewelry.
You'll get a better deal having new pieces made out of your old ones than trading in the existing pieces. My mother's family is almost entirely composed of Indian jewelers and they've made lots of custom pieces for my mother over the years. You'll get a much better deal if you send your gold to India with a relative (or on a visit, or whatever) and have the work done there, just because the labor cost will be so much lower - but obviously it will be harder to get what you want.
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Old 03-07-2013, 03:05 PM
Anaamika Anaamika is offline
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Originally Posted by Really Not All That Bright View Post
You'll get a better deal having new pieces made out of your old ones than trading in the existing pieces. My mother's family is almost entirely composed of Indian jewelers and they've made lots of custom pieces for my mother over the years. You'll get a much better deal if you send your gold to India with a relative (or on a visit, or whatever) and have the work done there, just because the labor cost will be so much lower - but obviously it will be harder to get what you want.
I think I will. I have a few earrings and the posts are HUGE...I don't put them in because I don't want my earring holes to look like my grandmother's. Also there are some rings that are seriously dated.
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