There are three prices of gold, the official price of gold, the selling price of gold and the buying price of gold.
If you are a Trader then hopefully you will buy at the lower price and sell at the higher price. The official price of the moment (the spot price or actual gold value) can be found from a number of sources and forms a guide to buying and selling. Traders may, in practice, charge or ask any amount they wish. Only in the scrap trade are there standard buying and selling prices relative to the actual gold value.
The price of gold changes each day. It is tempting to think that, because an item cost a lot of hard work, was given with great love and treasured for many years its value is great. If you are selling an item that is broken, or worn or out of fashion it will only be worth scrap value. But look on the bright side, gold has a high scrap value compared to most items - you wouldn't buy a new car and then expect to recover most of your money on scrap steel.
Scrap value (melt value) is not the same as official or actual gold value - scrap is lower. This is because smelters charge a percentage of the gold value for their service and scrap dealers sell to the smelters and must make a profit. In the case of the nationally advertised companies, they are paying many millions of pounds on advertising and must recover their money by offering lower rates.
The advantage of taking gold directly to smelters is that the highest rates are paid. The disadvantage is that they will only buy in quantity. Most customers do not therefore have access to a smelter and need to send their gold to companies who will buy any quantity no matter how small. Rates tend to be higher when the price of gold is stable as when it fluctuates dealers buying your gold jewellery must offer a lower percentage or risk losing money if the price falls.
Article by Nigel Martin - owner pounds4gold Pounds4Gold buy scrap gold
If you are a Trader then hopefully you will buy at the lower price and sell at the higher price. The official price of the moment (the spot price or actual gold value) can be found from a number of sources and forms a guide to buying and selling. Traders may, in practice, charge or ask any amount they wish. Only in the scrap trade are there standard buying and selling prices relative to the actual gold value.
The price of gold changes each day. It is tempting to think that, because an item cost a lot of hard work, was given with great love and treasured for many years its value is great. If you are selling an item that is broken, or worn or out of fashion it will only be worth scrap value. But look on the bright side, gold has a high scrap value compared to most items - you wouldn't buy a new car and then expect to recover most of your money on scrap steel.
Scrap value (melt value) is not the same as official or actual gold value - scrap is lower. This is because smelters charge a percentage of the gold value for their service and scrap dealers sell to the smelters and must make a profit. In the case of the nationally advertised companies, they are paying many millions of pounds on advertising and must recover their money by offering lower rates.
The advantage of taking gold directly to smelters is that the highest rates are paid. The disadvantage is that they will only buy in quantity. Most customers do not therefore have access to a smelter and need to send their gold to companies who will buy any quantity no matter how small. Rates tend to be higher when the price of gold is stable as when it fluctuates dealers buying your gold jewellery must offer a lower percentage or risk losing money if the price falls.
Article by Nigel Martin - owner pounds4gold Pounds4Gold buy scrap gold
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