Should you sell your gold at a Gold Party?

Posted on October 25, 2010 by So KC Gold Buyer

A Gold Party can be a fun way to get some extra cash.

At a Gold Party, your guests can enjoy a good time and receive some extra cash.

We see a lot of advice for people who want to sell gold floating around the Internet. Some of it is well-intentioned. Some of it is thinly-veiled advertising by some Internet gold buying company or other. The real challenge is to figure out what advice is legitimate, and what advice is simply designed to scare you away from competitors.

One thing we see time and again is this advice: Don’t sell your gold at a gold party. Is this good advice or isn’t it?

Why do they advise you to avoid Gold Parties?

Many times, it isn’t clear if they are talking about the big gold buying events that are held in local hotels or if they mean small parties held in the homes of your friends. As regards the big hotel events, we have heard some horror stories that might make you want to avoid them. We’ve heard of companies that come in, set up, write a bunch of bad checks and then skip town with the gold. We’ve heard of competitors that come in and set up in a small room next door and then misdirect people from the company that actually paid for the advertising. We are sure that there are other reasons to avoid these events and, due to the bad publicity, South Kansas City Gold Buyer hasn’t participated in any of these. We don’t want the taint of guilt by association.

Some clearly advise, however, that you avoid the smaller, private gold parties, too. Their reasoning is that the gold buyer has offered the host a cut of each purchase and that the host’s payment surely must come out of each guest’s pocket. It’s possible that some gold buyers do operate that way, but here at South Kansas City Gold Buyer we don’t do business like that.

Why we like Gold Parties at South Kansas City Gold Buyer

When we participate in a gold buying party, we treat each seller/guest just as we would if we met them as an individual, private client. We use the same computer program to calculate the value of their gold and to make a cash offer to them. If someone calls for a private appointment or sells their gold to us at a gold buying party, they will get the same price from us.

So, where does the host’s payment come from? We pay that percentage (usually, it’s 10 percent of the value payed to their guests) out of our profits. We don’t feel any need to short-change their guests to keep our profits high. We are glad to share that with the host for all the hard work that they put into gathering all their friends in one place for us.

Consider what the host has done: The host does the advertising for us. Often, they are a past customer, so they give us a great testimonial that sets their friends minds at ease. They explain what we do and do not buy – and how much we pay. They save us the gas and time of going out to meet all of these people individually. They also provide a fun-filled, relaxed atmosphere that eases some of the tension that some gold seller’s have. For all of that, we are more than happy to share some of our profit with them.

Bottom line: A Gold Party can be lot’s of fun – and profitable.

If you attend a Gold Party with South Kansas City Gold Buyer, you can feel sure that you are getting the same fair price we offer to all our clients. It’s a good way to sell your old gold in a fun, safe, comfortable environment. And if you think you might want to host a Gold Party, don’t hesitate to give us a call. We will be happy to help you and explain any other questions you might have.

Popularity: 7% [?]

What is a Fair Price for Old Gold?

Posted on February 8, 2010 by So KC Gold Buyer

When you decide to sell old gold jewelry, one of your chief concerns is to get a fair price. With the price of gold going higher every day, it would seem like you would be able to get a decent price for your scrap gold no matter where you go to sell it. Unfortunately, this isn’t the case.

There are a couple of issues that you need to be aware of when you decide to sell your old gold. First, there are definite costs involved in recovering the gold from whatever piece it is currently in. Buying, refining and selling all have costs associated with them, and each company along the way needs to make a decent profit.

The key thought here is that they deserve a decent profit. According to a Consumer Reports investigation, some Internet gold buyers are paying as little as 11% of the spot price of gold for the items people are sending in. That’s indecent to the point of being scandalous. In their article, Consumer Reports suggested that 50% was a reasonable offer. To give you an idea of how low the Internet guys are, our offers start at 60%, with 63% being closer to the average we round up to. Basically, they will pay you one-sixth the amount a local gold buyer like South Kansas City Gold Buyer will.

Second, as the old saying goes, knowledge is power. Many gold buyers will try to cloud the issue by using obscure systems of measurements (like pennyweights) that no one but a jeweler can use or weigh. Others will give you a quote by Troy ounce (which is different than a regular ounce) or by the gram. To us, the clearest and most direct way to quote a price is by the percentage of the spot price we will pay. And anybody you call can do that, even if they won’t admit to it. That’s how all of us get the price per pennyweight, gram or Troy ounce. We use some percentage off the spot price. If a buyer won’t tell you what percentage they are paying, move on.

So when you comparison shop, compare apples to apples. Ask for the percentage they are paying. And get a fair price for your old gold.

Popularity: 8% [?]

Are Internet Gold Buyers Safe?

Posted on January 10, 2010 by So KC Gold Buyer

Shipping your old gold to an Internet gold buyer may seem quick and convenient, but in reality, it is very costly.

Selling your old gold isn’t something most people do very often. For most of my customers, it’s a one time event. They go through their old gold jewelry and pick out a few pieces they don’t use in order to turn it into quick cash. Even though there can be significant money involved, a lot of people don’t want to spend a lot of time investigating the ins and outs of the gold buying industry.

In many ways, the Internet has made a lot of things more convenient. I do my banking and bill paying on line. There are a lot of things that I buy online. The savings in time, gas and energy makes these activities worthwhile. Sometimes, it’s a little bit of a hassle to wait for an item – like a book – to be shipped. But if I can pay half the price for the same book as I would get at a local bookstore, why not?

But selling your old gold isn’t like buying books online. There are a lot of factors to consider and a lot of variables that come into play. In my opinion, it’s always better to deal with someone face to face. It may seem convenient to order an envelope, pack up your gold, drop it into the mail and then wait for a check. But how do you know that the check you get back is what your gold was really worth?

In all honesty, you don’t. So why use the Internet buyers? Many people don’t want to go to their local gold buyers and spend the time shopping. Some people think first of pawn shops – who have long been traditional buyers of jewelry – and they don’t like the treatment or atmosphere. They like the idea of the convenience of doing the whole business by mail. But that convenience has a price.

In November 2009, Consumer Reports investigated the Internet gold buyers. What did they find? That they were offered between 11% and 29% of the value of their gold. You can read their article Cashing in gold? Here’s the catch. on their website. By comparison, South Kansas City Gold Buyer payouts are usually in the 60% to 65% range. That’s quite a difference.

Should you sell your old gold jewelry through the mail? Consumer Reports doesn’t think s0. Neither do we. Take the time to find a reputable, local gold buyer. You’ll be much happier with the results.

Popularity: 3% [?]

Cash for Gold – Is This a Scam?

Posted on July 3, 2009 by So KC Gold Buyer

Every where you turn you see advertisements that promise Cash For Gold. Is this legitimate, or is it some kind of scam? The answer: The idea itself is legitimate, but many of the people involved are definitely running some kind of scam.

Recycling Old Gold is a Legitimate Business

You really can turn old, unwanted gold into cash.

The idea of recycling valuable materials so they can be reused isn’t anything new. Junk yards recycle car parts, and eventually crush the remains for the steel. Many of us participate in programs to recycle paper, aluminum cans, glass and plastic to save raw materials and create new products. The only difference with recycling old gold jewelry is that the base material is so much more valuable. Unfortunately, the high price of scrap gold draws in more than its share of scam artists.

Legitimate gold buyers provide a valuable service. Rather than throw away broken or mismatched gold jewelry, you can recycle it and reap some financial rewards as turn your old gold into cash.

Beware of Cash for Gold Scams

There are two factors that can cause you problems when you go to sell your old gold jewelry. First, if you don’t know what you are doing, it is easier for someone to pull some sort of a scam on you. Second, depending on who you go to, certain types of gold buyers lend themselves more easily to unscrupulous individuals.

Know the Cash Value of Your Old Gold Jewelry

This isn’t as hard as it may seem. We have broken this down on our main website to make it easy for you to know the value of your old gold. Just spend a few minutes and you can be armed with quite a bit of information to protect yourself from the cash for gold scams.

Pick the Right Gold Buyer

In order to be treated fairly, you need to know where to go. All gold buyers are not created equal. The end result you are looking for will determine where to sell gold. Knowing how the different types of gold buyers operate can also protect you from getting into a situation where you are subject to a scam.