Fair price for scrap gold?

[sgc3301]

Not sure where to post questions on metals so I apologize if I'm in the wrong forum. I went to scrap some gold yesterday and was quoted two prices for 18k and 14k. I was quoted $32/gram for my 18k. That's about 82% of the market price ($39). Then for 14, I was quoted $26/gram for about 88% of market ($30). I'm guessing he has a bunch of 14K ready to go and can give me better price on than the 18k. I have a decent amount and do not want to travel around looking for best price while risking something happening. So are 82 and 88 percent a good offer? Has anyone haggled with someone over the price? And if I call up places with my total weight in each will they quote me?

 

[denverappraiser]

80%+ is decidedly high. The issue is going to be what counts as the credibility of the assay marks. 14k is supposedly 58.3% gold but it routinely comes back closer to 54 or 55% pure. That difference is the entire profit margin if they're paying at 88% and selling at 95% in quantity. The same thing happens with 18k. The difference between 75% and 72% is a huge deal. I doesn't hurt to call around but I'll be very surprised if you get a higher bid than that. Actually, I'm a little surprised you got offered that much. It varies depending on where you are but, around here, the pawnshops are paying around 60-70% and the high payers are still under 80.

Most places are hard pressed to give a firm quote over the phone for exactly this reason. That said, I'm sure they'll be happy to talk to you, especially if you've got quite a bit.

 

[sgc3301]

Thanks for the quick response! When I went to this jeweler originally with a couple of pieces while he was making my engagement ring and it was closer to 60-65%. When I brought in more, that's when he really upped the offer. I just assumed it was because he had some ready to be sent out ASAP. I will definitely shop around but I'm glad to hear it's a good offer to begin with. Thanks again! One other question about the % of purity...most of my gold is from 60s-70s. I see you said most gold is slightly more pure but I had read pre-1980 was actually less. Is this true?

 

[denverappraiser]

There are a few reasons for differences in the assay.

#1 The original manufacturer lied. At the margin for example 13.501k can legally be called 14k under certain circumstances. That's 56.2%. Every now and then they simply lie outright. 0% is an option. 10k is sometimes marked 14k, etc.

#2 Solders, gemstones, dirt and other things are part of the mix that aren't gold.

#3 The assay at the end can be wrong. Different refineries use different techniques and tools for their assays and they don't all show consistent results.

 

[TitanCi]

I guess my case was VERY atypical, but about a year ago I sold a 74 gm bracelet and got back 90%, I'm not sure if it's because my mom knew the guy, but I was happy. I wish I held on to it til today, gold's shot up.

 

[Dancing Fire]

i would be happy to pay 87% of its pure gold content.