Selling Gold on Ebay
It is possible to sell gold on ebay. The problem with ebay
is that their fees are so high. For some products this is not significant,
but for jewelry, where the cost of the metal makes up most
of the price, it becomes an important factor. It used to be possible to lower the costs by reducing the price of the jewelry but having a high shipping fee. However ebay has now closed this loophole. With PayPal fees – which are a part of eBay – on top, it ends up that they take around 16 per cent of the price. In addition the maximum length of time an auction can run is 10 days which does not give you much time to find a buyer who will offer you a good price.
The total costs of selling a piece on 'feebay' and using paypal
to pay for it, all of which must be born by the seller in some way, can
be calculated using this calculator.
Other types of auctions are even more expensive. Most auctioneers charge a 10 - 20% selling fee. They only get the fee if they manage to sell the item so they will usually price it sufficiently low to be sure of getting a bid. Auctioneers also charge a buying fee, so they can make up to 40% of the value sold in fees.
A high street jewelry store will pay about 60% to 65% of the day’s gold price for scrap.
In theory they should be willing to pay more than this as jeweler's gold ( ie 18k or 14k) is sold at a small premium, generally about 5%, over the melt value. However jewelry sales have collapsed in recent years and buying people's unwanted jewelry and selling it to a refinery is the only way many high street jewelers stay in business.
TV Gold Buyers
Not so long ago, Fox news put together a kind of undercover sting, where they brought in three of the same amounts of jewelry to three individual cash for gold businesses and waited for their payout and while all of the companies did in fact give them a payment for the broken gold, only 1 of those cash 4 gold companies actually submitted the current market value while the other cash for gold companies paid out one third of the real value. The other 2 companies that paid 30% of the real value were acting as middle men while the 3rd cash 4 gold business that paid the current market value did have their own precious metal refinery.
ABC News did a similar operation.
It is interesting to see what some ex-employees of cash4gold have to say about the company.
The fact is, gold brokers are nothing more than a go-between, between you and a precious metal refinery and as a result they will pay you approximately one third of the market price for your gold, silver or platinum and easily trade it back to a gold refiner themselves thereby keeping the larger share and you get a few measly dollars.
A study by the British magazine Which found that on average, TV gold buyers offered around 6 per cent of the retail price for gold, while high street retailers paid around 25 per cent.
|Cash for gold
||Gold retail price £115
||Gold retail price £215
||Gold retail price £399
a. Demanded £9.95 Postal Order (costing an additional £1 Royal Mail charge) to return item
b. Average of three quotes
c. No quote was provided by one merchant for the £215 item
People are usually down and out when they have to stoop to use a pawn broker. The pawnbrokers see the blood and go for the throat. Many pawnbrokers give you no more than 30% of the value of your item. The rate of interest that they charge will depend on the state but it will be somewhere between 3-14% every month...so forget about ever getting your jewelry back.
Some pawnbrokers will give you between 60-85% depending on the quality of the item.
Gold Selling Parties
Gold parties are organised by multi-level marketing companies and are typically held in people’s homes. The hook used to lure you in is the promise of cash for your unwanted gold jewelry, coins, and other items. The buyer tests your gold and pays you cash on the spot (based on the gold’s purity and weight). The on-the-spot pressure skills that these scammers possess, can make even the best people second guess themselves.
Fashion can play a role in how much you will get for your gold. Rose gold is currently the most-wanted metal of the season, so you can probably get a better price for it than other colors.
Broken gold will have the same price as new gold: you will get the melt value of the metal in both cases.
Tax will depend on which country to our in. In the US capital gains on sales of gold are taxed at 28% as precious metals and jewelry are treated as collectables. For example, if you paid $100 for a gold chain and later sold it for $200, your capital gain is $100, and you will owe $28 in taxes When you sell to a dealer, the dealer is required to report any gold bar sale of 32.15 ounces or more. Maples, Krugerrands, and Mexican Gold Onzas are reportable by the dealer to the government if sold in quantities of 25 or more but gold and silver Eagles, Australian Kangaroos, and Austrian Philharmonics are not reportable in any quantity. Silver ‘scrap’ coins if over $1,000 face value and 1000 ounces in silver bars are reportable but 40% silver content coins are exempt. Gold jewelry sales are not reportable.
Most jewelers and bullion dealers keep their records for 2 years.
Selling Gold in Thailand
Gold shops will buy gold jewelry from you at the spot price of gold ie
the price of the piece you bought less the design fee although some shops
try to give you less. You generally get the best price by selling it to
the shop you bought it from. If you exchange you will be charged
the design fee for the piece you bought. If you exchange it only a few
days after you bought it, you will probably not be charged anything.
Selling the gold outside Thailand should be no problem. Selling it just
as scrap, you will get back the spot price of gold at the very least.
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