Interestingly – since we just wrote about Gold Parties a few days ago – the Kansas City Star newspaper had a front-page story about Gold Parties today. The story seemed fairly positive, although there were a couple of points that seemed a little troubling.

Some Gold Buyers do pay lower percentages

The article talked about the price that was offered for a particular bracelet. Although they didn’t mention what the spot price for gold was on the day of the party, they did use a figure of $1300 per ounce throughout the rest of the story. Using that as a basis for calculation, it appears that the buyer was paying out at 45% of the spot price of gold. By comparison, we start our offers at 60%, and always round up to the nearest $5 or $10 amount. So our offer would have been at least $220 – and maybe a little more. However, as the article mentioned, gold buyers can run the gamut from 10% to 70%. We are happy to be on the high end of that scale.

The lesson: Even if you desperately need the money (as the woman in the story obviously did), make sure you know what you are getting. It’s a good bet that the extra $50 to $60 we would have paid would have helped in her car repairs.

The National Association of Jewelry Appraisers recommends you avoid Gold Parties

Well, of course they do. And who would belong to this no-doubt august group? Jewelers would be our guess. So, of course they recommend that you go to a jewelry store. We still maintain that someone is paying for the fancy display cases and the sharp suits and the security guards. We have heard many stories about – and had some personal experience with – jewelers who make a lowball or off-the-cuff offer to buy pieces. Make sure you know what you are getting. You can run through our small tutorial on How to Sell Gold to get a little better educated.

Bottom line: Even jewelry stores will vary in their practices and offers. Many will make a higher offer if you buy more jewelry, double dipping as it were. Knowledge is power.

Should you sell gold at a Gold Party?

It depends on who is buying. We believe we offer a competitive price and good service, along with full and fair disclosure. We fully explain the process and the offer, and never pressure the seller. Under those circumstances, a Gold Party can be a fun way to get a little cash.

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