With gold prices and values peaking this summer, a number of market analysts feel that we are entering a "gold bubble." Many of the top experts feel something very similar to the housing market crisis is on the horizon, We all remember how the housing market soared, then crashed in dramatic fashion. So if you have gold items, jewelry, coins, bullion, and dental gold that you want to sell for cash, consider selling sooner rather than later. There are no arguments that the current prices are more than decent. This Texas Gold and Silver Buyers of San Antonio Blog entry will guide you to what to avoid, or what to be on guard for when selling your Gold and Silver jewelry, coins, bullion, and scrap items. We also aim to steer you in the choice you are most comfortable with.
Selling to Mail-In Operations
With this option you mail in your gold and they mail you back a check. There are numerous companies online offering this option.
Pros: It’s convenient and easy, you never have to leave your home – they send a prepaid envelope, They promise to return your gold if you are not pleased with their offer, you drop the gold in the mail and they mail a check with a receipt if you accept their offer.
Cons: You PAY A HUGE PRICE for this convenience. Consumer Reports found that mail-in companies offered between 11 percent and 29 percent of the meltdown value of the gold. This is very unethical and a terrible business practice paying that low. Many times the packages are not insured, and mishaps happen within the United States Postal Service, such as lost or stolen packages. There are also numerous reports and complaints, that when their offer is declined by the consumer, there are expensive hidden fees and charges to get your items returned. Many States it is strictly prohibited for these National Companies to conduct business with the citizens of these states, yet the companies still operate and do business in these States, as they know any kind of action on part of law enforcement would likely be focused on the consumer who was unaware. Please keep in mind these laws are on the books to PROTECT consumers, not get them in trouble.
The bottom line: Understand the price you are paying for the convenience of using mail gold buying operations, “The guys on TV are providing a service, but they’ve got a very, very high expense rate. They’re spending literally millions on advertising — and that’s (part of the reason) you might get just 20 or 25 cents on the dollar.” says Paul Montgomery, president of the Professional Numismatists Guild. The large outfits that also pay millions in advertising online operate just like the businesses on TV, and a lot of times they are the same outfit, operating under many assumed names.
Hotel and Gold Expo Shows
These companies start an advertising blitz on local television a few months before they plan to arrive. They state they’ll be at a hotel or convention center in your area and will offer “the most" for your gold jewelry, coins, and bullion..
Pros: Many times these operations will buy more than just your gold – if you have collectibles, you may be able to sell them at the same time.
Cons: The limited time they are in your community can encourage high-pressure sales tactics and little recourse if you feel taken advantage of after the fact. Many times they also are unlicensed and not regulated in the State or Community they are conducting business in. In Texas, the State highly regulates Gold and Silver Buyers, thus doing their part to ensure Consumers are protected from immoral and greedy Gold Buyers. With these traveling outfits they rack up high travel expenses, rent and advertising expenses. This translates to the fact you will rarely receive more than 40 percent of scrap value. This is WAY TOO LOW! Not to mention their advertising blitz they have been running in your community, produces LARGE CROWDS, and many times you have to stand in line for hours for your turn to get low balled on your items.
The bottom line: PLEASE do your homework, know a fair price and wait for the offer. At Texas Gold and Silver Buyers of San Antonio we believe consumers should be EDUCATED and UNDERSTAND what they have before selling. Of course anyone buying from you is in business, and stands to make a profit, but these types of payouts are not acceptable.
Business is tremendously up at pawnshops since the economy tanked with the Great Recession, but also since the recession, gold prices have soared. Many people count on Pawn Shop loans to make ends meet, and there is nothing wrong with that, but Pawn Shops traditionally pay VERY LOW. They’ll test your gold for authenticity and then offer a price.
Pros: If you suddenly decide you really didn’t need to pawn or sell that family heirloom for a few bucks, you can usually buy it back or get it out of pawn, although at a higher price or with interest.
Cons: Pawnshops aren’t always in the best area of town, which can be a deterrent for most sellers. More times than not the "customer service" aspect is completely void, and they can come off in a cold and rushing manner. This is just a byproduct of the Pawn Industry. Also Fridays are a nightmare in a Pawn Shop, as folks are getting paid, and rushing to the Pawn Shop to make sure their pawn payments are paid, or getting things out of pawn. Most Pawn Shops will not take the time to go through your lot of jewelry, and almost always pass on Silver items if they are not Designer or Name Brand.
The bottom line: You would not sell a vehicle, boat, four wheeler or any other asset without doing some homework and learning about what you’re doing, Pawn shops are notorious for just verifying your items are gold, and not giving any consideration to the purity or karat. Expect to be paid for 10k gold, even if you have 14k or 18k gold. Please continue to follow Texas Gold and Silver Buyers of San Antonio's BLOG for periodic informational blog posts concerning all aspects of Gold and Silver Jewelry, Coins, Bullion, Dental Gold, and Scrap.
Home Gold Parties
The exact same thing like a Tupperware party, but instead of going home with plastic containers and less cash in your wallet, you sell your gold and take home cash.
Pros: It is a fun and social experience and perhaps the only multi-level marketing program where you leave with more cash in your wallet or purse than what you arrived with.
Cons: Don’t expect to make a fortune! In addition to the cut reserved for the company organizing the event, the host of the party will be getting at least a 10 percent commission. Not all the party hosts will be gold professionals, which means your gold will most likely not be evaluated fairly. These parties are notorious for weighing all karats of Gold together and paying for the lowest karat present. PLEASE DO NOT ALLOW 18k, 14k Gold items to be bought as 10k! This is leaving too much money out of your wallet, and into the wallets of the host and party organizer.
The bottom line: Socially Fun and a chance to catch up with friends and colleagues.. Is it profitable? That’s EXTREMELY questionable. Expect to get 50 percent or less than what your gold is actually worth. What it boils down to, is if you trust the folks running it, and if you are ok letting percentages of what you are due to go into the pockets of the host and organizers. Too many middle men = less cash for you, the consumer.
Jewelry Shops/Coin Shops/Gold Dealers
With the strong demand for gold, silver, platinum and palladium precious metals it seems everyone is trying to purchase your items these days. You won't have any issues finding a shop or dealer to purchase your items, the only issue that comes into play, is how honest are they, are they licensed and registered, so that they are properly regulated???
Pros: You’ll tend to almost always get the most for your Gold, Silver, Platinum and Palladium items at your local REPUTABLE AND LICENSED Precious Metal Dealer Shop, Jewelry Store, or Coin Store – up to 80 percent of the gold or silver value typically. If you have certain Designer or Name Brand crafted jewelry, if they are honest they are likely to pay more for the jewelry itself, rather than just offering you cash based on the scrap value.
Cons: Many Precious Metal Dealers, Jewelry Stores, and Coin Stores are catching on to the fact they don’t need to offer the best price for the gold, while sizing up a customer they think they can tell doesn't truly know what they have. This is running rampant in our local San Antonio, Texas area. In part because they see Mail In Gold Buyers, Pawn Shops, and Gold Buying parties taking advantage of consumers and getting away with it. Please do some research and make sure you are dealing with a reputable and honest dealer. At Texas Gold and Silver Buyers, we will always be honest and upfront. We STRONGLY believe in educating our customers and potential future customers, as is evident by this blog post as well as many others.
The bottom line: If a dealer tells you that the offer is only good until you walk out of the store, by all means walk out of the store, Go shop around. If you walk back in the next day, the dealer will still want to buy your gold. Also, if you shop around, attempt to go to all shops on the same day, since gold prices can fluctuate substantially. Ask the Precious Metal Dealer, Jewelry Dealer, or Coin Dealer to produce their licensing and credentials. If they balk at this, go elsewhere. Do your research online. Check for reviews, check for complaints, check for anything that your gut tells you doesn't seem right. There are MANY honest and reputable dealers across the United States, unfortunately the bad apples can give a bad name to the ones conducting truthful and honest business. BE AWARE how you are being paid! Many dealers will try to weigh in pennyweights, and then try to pay you by the gram, which leaves you with considerably less money than you are due. Other dealers will proclaim they pay up to 90%. If something seems to good to be true, it most likely is. We are always here for you at Texas Gold and Silver Buyers of San Antonio to answer any questions or clear up any confusion. We are your go to Friendly, Honest, Licensed and Registered Gold and Silver Buyers. We look forward to hearing from you soon!
Texas Gold and Silver Buyers
3435 Thousand Oaks, Suite 107
San Antonio, Texas 78247
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Thanks for stopping by our blog. My name is Evan and I am the owner of Texas Gold and Silver Buyers in San Antonio. From time to time I will post blog entries to help educate and inform our customers and potential future customers on all aspects of Precious Metals (Gold, Silver, Platinum & Palladium!)