Selling Gold -It pays to shop around

November 1, 2010

Have you been to the Shopping Centre and noticed companies with kiosks or stands in the walkways buying unwanted or broken gold jewellery and bullion? Being coin collectors we are avid watchers of gold and silver bullion prices so these kiosks have stood out to us. They don't advertise their pricing and we've not been game to ask....until curiosity got the better. It seems so convenient, in your face as you wander the shops you might think about that broken necklace or best-left-forgotten engagement ring that never led you down the aisle sitting in your jewellery box. Is it really worth something, do I need the cash today? These companies will buy your gold and jewellery whether it be broken or just unwanted or maybe a gold coin that you want to sell. They will assay the gold to determine it's fineness and weigh it and pay you cash, sound like a good idea?

We've done what you weren't game to do and that was ask what they are paying for our much loved gold. On the day in November 2010 we asked at this particular kiosk if they'd buy a 1 ounce gold nugget and what would they pay. Ok, for starters they buy per gram and they weren't knowledgeable in the weight translation so they bombed out there. We certainly knew that our 1 troy oz nugget weighed 31.1grams and was 24carat .999 fineness gold so we relayed this and here's the facts:

They would pay us: $585 for our 31.1g of 24carat gold nugget

The gold price for that day was: $1389USD
The conversion based on the exchange rate of that day was: $1380AUD

So, they are paying us 42.4% of the value of our gold. Think it's a good deal now?

Now not to tar everyone with the same brush other bullion trading companies and jewellers are very open and list their pricing updated daily on their websites. Checking these prices today they are paying over double what these shopping centre kiosks pay. These kiosks are out to get you, don't be caught!!

If you have a gold coin and want to check today's bullion value for it, have a look at our gold coin calculator.

Posted by harrisk at November 1, 2010 12:25 PM
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