Gold questions

so i have been seeing all these gold parties lately. bring in your gold and they pay you for it. i thought it was a scam.

so the other day my sister had one and asked me to participate. she said bring anything gold like old chains, rings, earings etc.

being as i dont have much gold (big mistake on my part) i had 3 rings in my jewelry box.

the price i paid for the rings when i was younger was 160, 100, and 30 and they were all 10 carat.

i dropped them off and got a phone call to come pick up my check, 351 bucks.

i about shit my pants.

now, my question, how in the fuck are they doing this? obviously they have a market to sell and make even more, but i feel like i ripped them off.

what are they doing with the gold?

i know its not a very political op but it kind of ties to what is going on with our whole situation.

Well, my started thread about "Peak Gold" was bashed by the usual suspects (without any substantiative backing, of course). But I would say that since certain producers are in decline, while others (mostly in China) are doing everything they can to increase production (which we know can't last see: Barrick).

Gold has more uses than for just money, that's why it will have value to technologically advanced countries, especially when the mines are dry, or not worth producing (which is why we have all these "cash for gold" things going on now). It's less about gold as money at this point - it's value lies in the utility of it in modern technology applications (like, the entire fucking space/satellite industry).

Gold itself is valueless - it was valued for millenia for the wrong reasons, now it's a matter of national security to secure enough CHEAP gold sources in order to amass as much of a stockpile as possible until alternatives can be found.

My opinion, of course...You're more than welcome to get others' two cents, but discern rhetoric from substance.

jeff f said:

so i have been seeing all these gold parties lately. bring in your gold and they pay you for it. i thought it was a scam.

so the other day my sister had one and asked me to participate. she said bring anything gold like old chains, rings, earings etc.

being as i dont have much gold (big mistake on my part) i had 3 rings in my jewelry box.

the price i paid for the rings when i was younger was 160, 100, and 30 and they were all 10 carat.

i dropped them off and got a phone call to come pick up my check, 351 bucks.

i about shit my pants.

now, my question, how in the fuck are they doing this? obviously they have a market to sell and make even more, but i feel like i ripped them off.

what are they doing with the gold?

i know its not a very political op but it kind of ties to what is going on with our whole situation.

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Well most of the time they melt it and either create bullion or other products such as jewelry. If you're wondering if you got ripped off and you knew the fineness of the items you sent in as well as the weight of each item then you could get an estimate on how much pure gold you actually sent in. Market price of gold last close was like $1658 per troy ounce. Now you'd subtract an assay fee (meaning they have to figure out the fineness) and melt fee. Honest bullion dealers you will usually get from 94-98% of melt. There are a few truly bad gold dealers (ie cash4gold) that have terrible records and are imo crooks.

maybe the check isnt any good and they just took your gold lol

Gold isn't anywhere near its peak. By selling a valuable commodity in return for quickly devaluing paper you have cheated yourself.

Currently the cheapest place to buy gold has it listed at $1,707 per troy ounce. A troy ounce is 31.1 grams. 10K gold is 26.5% pure gold. 26.5% of 1700( to simplify) = $450 per Troy ounce of 10K gold. $450/31.1=$14.47 per gram of 10k gold.

jeff f said:

so i have been seeing all these gold parties lately. bring in your gold and they pay you for it. i thought it was a scam.

so the other day my sister had one and asked me to participate. she said bring anything gold like old chains, rings, earings etc.

being as i dont have much gold (big mistake on my part) i had 3 rings in my jewelry box.

the price i paid for the rings when i was younger was 160, 100, and 30 and they were all 10 carat.

i dropped them off and got a phone call to come pick up my check, 351 bucks.

i about shit my pants.

now, my question, how in the fuck are they doing this? obviously they have a market to sell and make even more, but

i feel like i ripped them off

Click to expand...

.

what are they doing with the gold?

i know its not a very political op but it kind of ties to what is going on with our whole situation.

Click to expand...

No i bet my balls they ripped you off. They r the pros ,you are the rookie. (They will prob on sell for about $800)

NoDrama said:

Gold isn't anywhere near its peak. By selling a valuable commodity in return for quickly devaluing paper you have cheated yourself.

Currently the cheapest place to buy gold has it listed at $1,707 per troy ounce. A troy ounce is 31.1 grams. 10K gold is 26.5% pure gold. 26.5% of 1700( to simplify) = $450 per Troy ounce of 10K gold. $450/31.1=$14.47 per gram of 10k gold.

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well for the rings i sold, i would say the guy was pretty competetive. i would guess that i had right at or slightly below an ounce. so figuring his cut and my sisters for hosting, i feel pretty good about the sale. in 5 years when gold is about 6,000 per ounce, i might feel differently

By "peak" I was referring to production, not price. But I shouldnt expect anything I say to be interpreted correctly.

The Ruiner said:

By "peak" I was referring to production, not price. But I shouldnt expect anything I say to be interpreted correctly.

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My apologies if I assumed too much, but you have assumed that I meant price and not production. The actual amount of gold mined is about 2% total each year. It hasn't peaked, nor has it declined as of yet.

Gold has value becasue it is rare, not so much because it is used for high tech devices. Only 2% of the gold mined is used for anything other than Jewelry or Money. Unlike silver which 110% of what is mined is used in industry. Silver is used in more items than any other metal known to man. Gold? Not so much.

Believe ND if you want, however, there is a general consensus that gold has been in decline for quite some time. As far as the uses go, a 10% figure for industrial use is a safe bet, which when the time comes for countries to decide: "Do we maintain our air/space supremacy or do we make jewelry?" What do you think is going to happen?

People dont need jewelry, and the economy doesnt need gold either...however, anything having to do with the space/satellite industry (which if you have just woken up from a 40 year slumber) is the backbone of modern life, and warfare, does NEED gold. Gold will become increasingly valuable, only to be blasted off into space. Take it or leave it, but you can bet your sweet ass that no developed country in the world will be without gold as long as they can help it.

I prefer to keep collecting brass. Bullets will be > than gold soon.... lol

The economy doesn't need gold, it needs more pieces of paper. Paper is what is valuable, everyone knows that.

NoDrama said:

The economy doesn't need gold, it needs more pieces of paper. Paper is what is valuable, everyone knows that.

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I'll take all that worthless paper off your hands, just send me all those 20's and 100's that are just worthless peaces of paper.

I like the electronically traded fund GLD. It is highly liquid, that means it is heavy traded thus easy to buy and sell it with a narrow bid ask spread often just a penny wide. When you sell your gold jewelry the price they pay you is at a very deep discount and when you buy gold from them you have to pay over the market value. This provides the physical gold dealers a guaranteed fat profit.

In my opinion the risk in trading gold is the downside without question. It is in a parabolic move up at this time and may continue as long as the market is gripped by fear and uncertainty. Next week the market will have our well deserved credit downgrade to digest some more.



Gold and the gold volatility index in a 1 year time frame. Rising volatility and fast rising price. The real money bet is this is going to end badly, when it does sell off it is going to drop like a rock as sellers panic. This is expected. This is not a problem if you trade it expecting this as a possible outcome.

LOL if you sell your gold for less than spot and buy it for way more than spot. well the saying goes: A fool and his money are soon parted.

Can you demand physical delivery of your gold when trading in the GLD?

NoDrama said:

LOL if you sell your gold for less than spot and buy it for way more than spot. well the saying goes: A fool and his money are soon parted.

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That why there are hour long infomercials trying to get you to buy physical gold.

NoDrama said:

Can you demand physical delivery of your gold when trading in the GLD?

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No I cannot nor would I want to, I will be happy to take my profits in US Dollars.
I could take my profits and go buy physical gold but have no need to do this.

In case of Force Majeur, a single ounce of physical gold will be worth 1000 times what the entire GLD is worth. Check your prospectus, I bet in the case of FM you get nothing.

all i can say is that i got a lot of money whith someithing that was totally worthless to me.

will i be begging for gold in six months? maybe. but i havent done shit with the rings i had for 25 years.