The game of Scrap Gold

I’m sure you’ve seen the ads all over television, the “Cash 4 Gold” ads where the company offers you cash for old or unwanted gold scrap.

In reality, you’re receiving pennies on the dollar for what was paid for the gold because the throw away value for the gold is minute, then the buyer takes his cut from what he pays you.

Whatever the actuality of selling gold for scrap prices, the business is booming and lots of jewelry stores are cashing in on the craze. The trend has caused increased competition in the area and since gold has reached and hovered around $1000 an ounce, it has grown to be a very profitable business for gold buyers.

It has become so popular that a number of jewelry stores have been holding gold selling get togethers and certain websites are able to publicize during the Superbowl.

One seller, Richard Stalter, has owned a jeweler, South Side Jewelers & More, for 19 years and this moment there is new competition for him also.

“I used to be the only one down here that did that,” said Stalter, whose business model has always been largely based on generating most of its income from buying gold to sell for scrap. “Now, I have three competitors.”

Peddling any gold that you may have in your home could be a potentially devastating situation. I myself don’t trust anybody that I have to mail my valuables to then wait for them to send me a check. That is too much hope in a business or individual that I don’t know. I would more willingly go to a jewelry store to sell any unwanted jewelry.

I don’t think I’m alone in that.

I have noticed a huge jump in the amount of ads for gold buyers and jewelry establishments that are taking gold from patrons as scrap. I know the jump in price is a huge encouragement for more and more people to get out there and try to sell their gold, but I would imagine that more people would have some sort of emotional value connected with their jewelry than what the scrappers are willing to give them for it.

However, I do suppose if times are tough enough then most individuals will do whatever they have to to keep food on the table, and there’s nothing wrong with that, but if you are at the point where you are going to sell your treasure, please do some research first.

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