The Gold Party Scams How They Do It...
Selling your gold for cold, hard cash is an excellent way to put your old gold and jewelry to good use. Yet when you do sell, you also want to make sure you are working with a reputable company like JB Jewelers that puts your best interests first. For obvious reasons, the precious metals market attracts countless scam artists and opportunists who are eager to take advantage of you and your valuables.
This is how you can get cheated:
If we take one gram of 21kt and sell it at $24.75 x 93/100 =$ 23.01 per gram
We would pay our customers $19.50 per gram. The profit per gram is: $23.01- $19.5= $3.51 plus we have to pay taxes at the end of the year on all of our profits.
The profit percentage per gram=3.51/23.01=0.152 or 15.2%
If the Gold party owners pay with cash, pay 10% commission to the host and 5% to the person referring the host to these people AND pay their employees to run the parties this is clearly OVER the 15% profit!
In order to make a profit they must cheat. Here are 5 ways this can be done.
- Cheat on the weight. They buy your gold by dwt or penny weight which is equal to 1.555 grams. They pay you for 1 gram (one gram). This means they cheated you out of almost 1/3 of your money.
- Cheat on the karat by telling you that your gold is less karat then it actually is.
- Put all the different karats together on the scale and pay you for lower karat price.
- Offer you an amount of cash for your gold lower then actual value and see if you will accept it.
- Convince you that the karat stamped on you gold is not correct. Other countries may have a stamp on the your gold that you do not understand, he can then tell you that your gold is not the karat you thought it was.