Unlike the past, scrap gold buyers are everywhere in today's world.
Most only pay a fraction of value, except for one specific and little known group. Read on and find out who they are and how to connect with them...
It was as recent five years ago that when someone wanted to sell their used or scrap jewelry they had a hard time finding buyers.
Jewelry stores wouldn't dare to buy. How could they justify paying such a low price when they had some of the same items in their display cases for ten times more than they were offering.
Cash for gold companies were just gaining steam but were not media junkies like they are today.
The only place you could sell your gold was at coin dealers or pawn shops. They were sparse and pretty much unknown because they rarely advertised their service. They depended on word of mouth for promotion.
Things drastically changed when the price of gold start to reach record levels.
Now you can't watch TV or turn on the radio without hearing a commercial on the subject.
The problem with those hard hitting media types is that due to their huge advertising expenses they can't pay much for the gold.
They claim they will pay good but they don't. In fact, some pay as low as 10% of melt value, which is the value of the gold content after the item is refined.
The good news is that today's gold prices have spawned a whole new crop of buyers. Some who actually pay a fair price.
It's not the pawn and coin dealers. They have always been pretty consistent, paying about 50% to 60% of spot.
It's definitely not jewelry stores, they still don't get it!
They are struggling as retailers because they a stuck on that 300% mark-up. They buy scrap just to keep their cash flowing, and generally pay about the same as coin and pawn dealers.
There is one group that pays a fair price, they are investors in gold. They will pay anywhere from 70% and up.
The reason is that they do not have the operating expenses that the others do. Also, they are not as interested in turning an immediate profit.
Investors tend to hold onto the gold for the long term increase in value, known as wealth creation. They also use gold as a way to preserve wealth.
By buying scrap gold, as opposed to bullion, they avoid the premiums that are added when purchasing gold bars and coins.
Gold Beginners offers a venue where you can connect with investors, who are scrap gold buyers, that are located right in your area.