We have all seen it, send your unwanted gold jewelry and get cash. By now we have also seen news reports about what a scam it is. But given the high cost of gold and extreme damage to the environment mining for new ore, recycling gold is necessary. The problem lies in the lack of information of what the refining process actually is.
Refining has traditionally been used by jewelers to reclaim metal filings, sprues, sweeps, and other odd scraps that hold no value to the consumer. For example, if you get a ring resized from a size 8 to a size 4, the tiny scrap of gold is collected and stored until enough gold has accumulated to be sent to a refiner. Most refiners will only deal in larger quantities of gold, and will not consider refining anything less than 1 troy ounce for a customer. That is a lot, and I mean a LOT of rings resized.
Almost all legitimate refiners deal on a wholesale level only. To put it bluntly, they do not want business from people who are not in the jewelry industry. You must have a tax ID number and provide information to homeland security. The scrap is bought for a percentage of the daily market value. Since it is not finished jewelry, it turns out to be a good deal.
Selling finished jewelry for scrap may not be the best idea. The appraised value for a finished piece of jewelry is very different than the just the cost of gold in the piece. Other factors are taken into consideration in the appraised value of a finished piece of jewelry such as craftsmanship, wear, and stones. Pawn shops and estate jewelers base value on these factors when they offer a price, not on the direct cost of the gold. The cost difference can be significant. There are many pawn shops and estate jewelers who will offer fair prices for your jewelry. Let them make you an offer, you might be pleasantly surprised.
