Selling Gold

[Bomonster]

Can anybody answer this question, when selling gold bracelet to gold shop the price in the window for shop to buy 16600 but the shop owner says that is for gold ingot not bracelet etc. i thought gold was gold he offered 14000. any ideas

[Soutpeel]

Its called capitalism

[hatchet]

why doesnt anyone believe me.

you buy soemthing for 10,000 baht they will buy it back for 5500-6000 baht. assuming gold price is same same!

you not just paying for workman ship like some claim. shop has employees, rent, insurance yadda yadda yadda!

[garyh]

Sounds like the shop is being very generous to offer you that much, what planet did you say you where from?

[gregb]

The first thing any gold shop will do is weigh your gold chain. Since 1 baht of gold ornanments is only 15.18 grams, but 1 baht of gold is actually 15.24 grams, your chain will always be too light, and they will offer you a lower price. Then, they will get a loupe and look for the hallmark of the factory who made the chain. If it is a well respected chain, you may get slightly more. If it is unknown, they'll lowball you.

If you previously purchased the chain from them and have a receipt, they'll give you the price as published for gold ornaments by the gold traders association. You can check this yourself on www.goldtraders.or.th. As I write this, the published rate for purchasing gold bars is 17650, and the published rate for purchasing gold ornaments is 17388.52. Again, that rate only applies with a receipt and when you resell to the same shop where you purchased it.

My experience is that any random, 1 baht chain will reliably get about an 8% discount from the current selling price. So, if you say the advertised price was 16,600, then I would try different stores or negotiate until they came up to about 15,200. (BTW, gold has not been 16,600 in ages. Did you mean 17,600?)

A good negotiator or a good relationship with a gold retailer may net you slightly more than this. Keep in mind they are trying to make money off of you at the same time you are trying to get a good deal for your scrap. If you want a way to invest in gold with no hassles when you sell, buy 10 baht gold bars from an investment house. They really will buy and sell with only the published 100 baht spread.

If you are going to buy retail through a street level merchant, you need to accept that he is a businessman and prepare yourself for this. Don't be afraid to walk out and try another establishment if you don't like the person you are working with. Above all, approach the problem with a smile and light hearted attitude. Make a day of it, laugh joke and have fun. When you are ready and have found someone you like, cement the deal and go home. Next time, maybe you can start with him.

[LivinLOS]

My experience is the shops pay the actual baht window price minus a few hundred baht. When purchasing chains the workmanship is added on in the purchase (lots to tourists but again a few 100 baht tops if you are dealing with a straight shop).

I am continually amazed at how fine the margins in the biz seem to be. I suspect its that a lot fo the actual biz is secured lending but even that isnt at a crazy high rate of interest.

[Bomonster]

The first thing any gold shop will do is weigh your gold chain. Since 1 baht of gold ornanments is only 15.18 grams, but 1 baht of gold is actually 15.24 grams, your chain will always be too light, and they will offer you a lower price. Then, they will get a loupe and look for the hallmark of the factory who made the chain. If it is a well respected chain, you may get slightly more. If it is unknown, they'll lowball you.

If you previously purchased the chain from them and have a receipt, they'll give you the price as published for gold ornaments by the gold traders association. You can check this yourself on www.goldtraders.or.th. As I write this, the published rate for purchasing gold bars is 17650, and the published rate for purchasing gold ornaments is 17388.52. Again, that rate only applies with a receipt and when you resell to the same shop where you purchased it.

My experience is that any random, 1 baht chain will reliably get about an 8% discount from the current selling price. So, if you say the advertised price was 16,600, then I would try different stores or negotiate until they came up to about 15,200. (BTW, gold has not been 16,600 in ages. Did you mean 17,600?)

A good negotiator or a good relationship with a gold retailer may net you slightly more than this. Keep in mind they are trying to make money off of you at the same time you are trying to get a good deal for your scrap. If you want a way to invest in gold with no hassles when you sell, buy 10 baht gold bars from an investment house. They really will buy and sell with only the published 100 baht spread.

If you are going to buy retail through a street level merchant, you need to accept that he is a businessman and prepare yourself for this. Don't be afraid to walk out and try another establishment if you don't like the person you are working with. Above all, approach the problem with a smile and light hearted attitude. Make a day of it, laugh joke and have fun. When you are ready and have found someone you like, cement the deal and go home. Next time, maybe you can start with him.

sorry yes 16600 and since my post a 3.5 gram ball was apparently missing from the bracelet so all in all not too bad eh cheers

[sharecropper]

My experience is the shops pay the actual baht window price minus a few hundred baht. When purchasing chains the workmanship is added on in the purchase (lots to tourists but again a few 100 baht tops if you are dealing with a straight shop).

I am continually amazed at how fine the margins in the biz seem to be. I suspect its that a lot fo the actual biz is secured lending but even that isnt at a crazy high rate of interest.

I'd like to know the average default rate on loans though! I bet that's where they make money, especially if the gold is hot.