Sunday, April 19, 2009

"Cash For Gold!" Cool Checks On The Factual Account

By Betty Buckminster

Looking to sell your gold for cash? If you've read and seen the hype by TV pitchmen and maybe you are wondering that the only one being taken to the cleaners is you if you fall for it. The truth is, well connected buyers who sell directly to a refinery can pay the most - up to a cool 70 percent of the melt (spot) price of gold.

Here is an additional cool check on prices: you can get 10% to 70% of the melt price depending on who you deal with. Gold dealers will pay you about 50% of the melt price. Pawn shops will reimburse about 40 percent to 50 percent of the melt price.

The firms that advertise on television will pay you the smallest percentage of money. The common rate is about 33 percent, or 33 cents on the dollar. I've even read of people getting as little as 10 cents on the dollar!

Before you get ripped off know the purity and weight of your gold. Pure gold is known as 24 karat gold. Gold dents easily so it is combined with other materials to harden it. 18 karat gold is 75% pure, 10 karat is 44.2% pure. If you had one ounce of 10 karat gold and the spot price was $900 then $900 x .4416 equal $397.44 worth of gold at the melt price. If you get in contact with someone willing to give you 70 percent of the melt price, they should pay you $397.44 x .70 = $278.20.

You don't want to be taken in, so ask around for various offers and make the effort to write down the prices paid. Then do your own assessment. Weigh your pieces and multiply against the respective weights. Then multiply against the spot price.

Gold weight is another matter where you need to beware of. There are 20 pennyweights in a troy ounce. The measure used to weigh precious metals of gold, platinum and silver, a pennyweight (abbreviated dwt.) is equal to 24 grains and there are 20 pennyweights in a Troy ounce.

Your home food scale is in grams per ounce. The troy ounce (ozt) is 480 grains, somewhat heavier than an avoirdupois ounce (437.5 grains). Grams: A metric unit of weight equal to one thousandth of a kilogram.

It can be a bit confusing if you're not used to the system of measurement. If that is the case, have your gold weighed by a trusted acquaintance or professional who is in a position to help if you are not going to do it yourself. In like manner, when you sell your gold, you'll be more probable to get a more suitable price when the gold market is moving up since the dealer will think he can get a preferred price as it is increasing. Off topic: save 50% replenishing personal checks at Cool Checks

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