Where Do Wholesale Gold Buyers Sell The Gold ?

[KRS1]

Ive always wondered what 'gold buyers' do with the gold that they purchase from the public. Those guys that have signs that say "we buy gold"....what do they do with it once they get it?

Do they sell it to a gold factory at a wholesale price? or do they just stick it in their display case? What do they do with gold jewelry that is damaged and beyond repair for resale?

Thanks !

[Bpuumike]

Are you talking about, say, the UK or Thailand?

In the UK, for example, it is either bought by the refiners, or companies that sell it on to refiners, but they all pay the public a small fraction of the spot price. It is all melted down for re-sale in whatever form.

In Thailand, any of the gold shops will buy their gold back from you at a good price, as posted in their windows by most of them..

[KRS1]

Thank you for replying. Im talking about abroad in the US but i suppose its the same in the UK?

Thinking about doing this back in the US. If you compare the US prices to Thailand it appears the US whoesale buyers are making close to $200 profit per one baht (13.5 grams) of 22k gold. But i dont know what other cost are associated as well as what the refiners would deduct from reprocessing scrap.

I recently sent an email to a US company 2 days ago and they gave me a quote of $39 per gram of 22k, which i believe is the equivalent of 96.5% purity ?

I guess the trick would be to sell it as fast as you acquire it to bring values in fluctuation down to a minimum?

[Naam]

I recently sent an email to a US company 2 days ago and they gave me a quote of $39 per gram of 22k, which i believe is the equivalent of 96.5% purity ?

to be precise

-96.5% = 23.16 karat

-22 karat = 91.6¯% purity ( ¯ = mathematical periodic sign)

[KRS1]

Thanks for that i dont exactly have all my numbers correct yet. Baht is actually 15.24, but im pretty sure they calculate at 13.50-14.24 to compensate for other metals.

Edited April 5, 2012 by KRS1

[thrilled]

I buy my gold at Bangkok ,Chinatown yaraphat road.I purchase it there and sell it there also.

The store I buy and sell it to has A great reputation in Bangkok.

[bbradsby]

I'm no expert in this, but had an interesting experience and subsequent Local Advice: it's important to buy from a reputable dealer - if you dont read Thai or have a knowledgeable Thai with you, go to a bigger shop in a prominent location such as a major mall. The small, unknown shops present the risk of cheaper metals being mixed in, selling you 'watered down' gold at pure gold prices.

I was given a substantial gold chain & Buddhist monk amulet many years back as a gift from a relative. We went to a major, mall-based shop to sell the chain portion last year, and the shop looked for a recognizable stamp, didn't find it. Then they heated it up a bit in a tray and a foreign, grayish matter bubbled out of it... Instant ±10% discount on the price they paid us. Now, I had no idea they were going to do this, and did it out of our sight while we were busy looking at new chains. SO, it's entirely possible they faked the test to rip us off. This was my initial thought as soon as they presented the 'evidence' of our property's reduced value. I considered my options, decided to not make a scene, as it was not a big financial deal to me. The takeaway for me was this: if youre in it as an investment/income strategy, you should know your stuff, the same as any other investment.

I was told that each shop has a small stamp on their pieces to ID them, and they will buy their own goods back most painlessly. Anybody here know how to quickly & cheaply test gold for purity on the spot?

Edited April 6, 2012 by bbradsby

[flying]

Anybody here know how to quickly & cheaply test gold for purity on the spot?

Quickly? Strong magnet....gold should not present an attachment

if it does forget it....

I have also read but never tried using a small unglazed porcelain tile as a test

You drag the gold on it...if it leaves a black line it is fake

If golden yellow it is real

anything further I believe would require acid or electronic test

I am not aware of a flame test as you described...short of melting the gold....fire/assay

Your experience sounds a bit fishy to me but I could be wrong

I am not expert & buy coins from reputable dealers only

Edited April 6, 2012 by flying

[bbradsby]

Ya, they ostensibly heated it up til something besides the gold melted. I'm a neophyte in these things, but the whole thing happened unannounced, out of my sight, after my chain was weighed and value set, and while wife & self were looking at other gold to purchase. the whole thing kind of smelled bad to me but wife said this was not uncommon and the shop was reputable.

Maybe my chain was 'cut' with some kind of pot metal. But, for all I know, they put the chain in a pan, dusted it with lead powder and torched it up a bit to make it look convincing. But since the price diff was small in real terms, and there were 'cultural issues' in play (saving face, etc... wife is very adamant about not making a fuss under conditions where any Westerner would call Bullsh*t on something) I decided to sacrifice some Baht to ensure the Domestic Tranquility.

If this were an investment transaction? I would have told them to clean the junk off my chain, taken it back and gone to another shop. Never let your own property out of your sight til the transaction is done. As in all things, Caveat Emptor. Any experts on this Forum, please 'Weigh In' - pun intended!