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ParrotNewsReport.com/cj (Citizen Journalist Blog)

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Tuesday, March 19, 2013

If you sell your gold jewelry to a "gold dealer" you are getting RIPPED OFF!!


The "Dealer"
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Most legitimate coin dealers will offer 70 to 80 percent of melt value for jewelry. Never attend a "gold party".

(Over the last year the price of gold per ounce in USD has changed from $1,650.00 in may 2012 to $1,800.00 in sept 2012 to $1,600.00 in mar 2013.

This means if your sell your one ounce of gold the "dealer" will make between $320.00 to $480.00 per ounce. A 20 to 30 percent profit. They promise to offer "the best price", "best rates", or "highest prices", which in reality are all meaningless terms.) Story Reports
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They Can Trick You On The Weight

Some gold buyers buy gold jewelry based on 'penny weight', abbreviated 'dwt'.

A penny weight is a unit of mass equal to about 1.555 grams. A common sleight of hand is for the gold buyer to pay sellers the price of a gram, but for each pennyweight, thus getting .555 grams essentially free for every pennyweight unit of gold they buy.

Unsuspecting individuals can also be confused by the fact that there are 28 grams per normal ounce, but 31.1 grams in a Troy ounce. This complexity allows for deception and obscure pricing.
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They Can Cheat On The Karat

Another slick move is to tell sellers that their gold is less karat than it actually is. The buyer might even say that whatever karat you thought your gold was is incorrect due different measurements from different countries and other reasons.

In the heat of the moment, people can fall for the apparent 'gold expert' in the room.

A slightly more sophisticated trick is to group together gold pieces of different karat, but then pay based on the lowest karat gold in the group.

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Gold Dealers Can Simply Low Ball You

To some people, the lure of immediate cash might outweigh the fact they are getting skinned. Especially if the seller is getting excited about 'making money'.

Low balling is a numbers game. While many sellers might refuse low offers, some will likely agree. So gold buyers just low ball as many potential sellers as they can and collect from the suckers.

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They Tell You It's For Charity

This is where people need to be especially careful.

Some gold buyers will tell you some of the profits will go to charity.

Indeed some of the money from the sale could be going to charity, and some may have good intentions.

Yet if gold is underpaid for, the charity isn't getting the amount of money it should be, and clearly the final gold buyer involved is making a substantial amount of money when he turns around and sells to a refinery for a huge margin.

Beware of people taking advantage of your good intentions, as a way to make you knowingly accept below-market values for your gold.

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Your Jewelry Is Probably Worth More Intact

Jewelry is generally worth more than the sum of its parts due to its aesthetic value and the workmanship used to create it.

Thus you're probably better off selling your jewelry as actual jewelry rather than selling it based on simply the weight of gold it contains.

Gold buyers might even set aside particularly beautiful jewelry.

They won't melt it down. Instead, they'll put it up for sale on eBay or in a jewelry store. Given they paid you a below-market scrap value of the piece, their margin here will be enormous.


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You Lose The Value Of Anything Else

Precious stones or other sources of value on your jewelry will not be priced-in.

Many, if not most, gold dealers say that they will not return any precious stones even if they are only paying to smelt the gold out of your valuables.

Even if the stones are just worth another 10%, that's 10% that goes into the pocket of the buyer and value you lost.

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They Wow You With Technology

Gold buying 'experts' test and weigh gold right in front of you, at the same time explaining how impressive their equipment is.

They may even teach you how to test and weigh gold yourself.

This appearance of precision can cause people to let their guard down when it comes to questioning the accuracy of the equipment and techniques used, as well as the basic underlying pricing formula.

The most accurate equipment means little if in the end the company is offering you a horrible price.

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How To Set Up Your Own Gold Mine

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(Now that your have become more aware of what's involved in selling your "scrap gold" maybe you won't get ripped off because of your past ignorance of gold buyers, ie "dealers".) Story Reports

IGNORACE IS BLISS WITH MANY PEOPLE

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Current Gold In US Dollar per ounce - (GOLD)

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