The GoldCompany We Guarantee the highest price for you GOLD & DIAMONDS!!

In recent years the industry has seen an unprecedented number of gold buying companies emerge as a result of soaring gold prices. Those wanting to sell their gold and take advantage of the record gold price, now have a myriad of choices in choosing a company. This begs the question, how do you know if the company you’re dealing with is trustworthy and ethical?

1) Ethical gold companies will quote the REAL price they pay

Smart sellers should certainly shop around to find the best price for their gold bracelets, gold rings, necklaces etc, but it is important to seek genuine quotes on your actual items, either by visiting gold companies in person or sending your items to a gold company that will advise you of the value prior to processing the gold. Too often, gold buyers will quote inflated prices on their website or over the phone to bait you into believing that they will pay you the most. Once you make the trip to see them or send your gold jewellery away, the price actually offered is significantly less than the price quoted. Sellers should be cautious of gold buyers quoting prices equal to or even higher than the spot gold price for unrefined items.

2) Ethical gold companies offer fair prices and are transparent with their gold valuations

Determining the value of your gold coins, gold watches, gold rings, etc is actually a much simpler process than many gold buyers would have you believe. In fact, all gold buyers that are purchasing your gold for its gold content use the same formula, incorporating the following factors:

• The US Dollar gold price of the day
The gold price is always based on the US Dollar, and must be converted into Australian Dollars.

• The US-Australian Dollar exchange rate of the day
Since the gold price is always quoted in US Dollar, it is sensitive to changes in currency exchange rates.
For example, let’s say that the gold price in USD remains the same from Monday to Tuesday, but the Australian dollar strengthens in relation to the USD – this would mean that you would be offered less for your gold on Tuesday, even though the actual gold price would not have changed.

• The weight of your gold items
While the daily gold price is listed in troy ounces, gold prices are normally quoted according to gram weight. There are 31.1 grams in a troy ounce of gold.

• The purity of your gold items & the refining factor
Most gold you sell to gold buying companies needs to be refined, which means that the gold item must be melted down, the non-gold components removed, and the pure gold extracted. 9K gold is 9/24 parts gold, or 37.5% gold and 62.5% other metals. 18K gold is 18/24 parts gold, or 75% gold and 25% other metals. Clearly, the higher the gold content in your items the higher the value of your gold. When calculating value, gold buyers take into consideration the amount of pure gold that may be extracted, the costs of refining gold, and the unavoidable loss of gold weight during the gold refining process.

• Margins
Also included in the gold price offer is a profit for the gold buyers to make – this margin will vary among gold buying companies, and is the reason that you receive different offers from different gold buyers.

So what is the bottom line when it comes to gold value? When you shop around for prices, ensure you ask gold buyers how they arrive at the amount they offer you – trustworthy gold companies are happy to explain how they arrive at your gold valuation. To determine your gold’s worth and calculate the value of your gold, the following general formula applies:

Value of your Gold = Daily gold price in USD ÷ AUD currency exchange rate ÷ 31.1 grams in a troy ounce × purity of gold × gram weight of gold – refining weight loss and fees – profit margin

The GoldCompany pays 80% of the daily gold price for gold jewellery that needs to be refined, and up to 98% of the daily gold price for pure gold already refined in bullion form (gold coins, gold bullion bars, etc).

3) Ethical gold buyers state clearly whether they are purchasing your gold for REFINING or RE-SALE

Recently a number of gold buyers have been under heavy scrutiny in the press over allegations that items purchased at melt value were turned around and sold as second-hand jewellery. Jewellery pricing is different to gold pricing – jewellery pricing takes into account the condition of the gold piece, design, quality, workmanship etc. Sellers that have rare antique and designer-brand pieces should first try to sell these gold items as second-hand jewellery, as the potential sale value may be greater than melt value. For more options on selling your gold, please see Understanding Gold Valuations when Buying & Selling Gold Jewellery.

4) Ethical gold buying companies CONSULT you first

Be wary of gold buyers that simply send you payment without first advising you of the value and gold content in your items. As the seller, you should have the right to refuse an offer that you are not happy with, and have your items returned to you.
Some gold buyers make it obligatory to sell your gold pieces to them once you mail your gold to them. This allows them to buy your gold bracelets, chains, watches, and other gold jewellery for an unreasonably low price.

PROVEN to pay more
o By The Daily Telegraph, A Current Affair (ACA), and referrals from our customers.
Prompt and efficient service
o Free valuation and offer, fast turnaround, and no cost to you… ever!
Insurance and immediate payment guarantee
o Visit our office for cash payment on the spot.
o Receive payment on the SAME DAY you accept our offer.
o Jewellery return GOLDPak’s insured to $5000.00.

When selling gold jewellery, many people are uncertain which items in their gold jewellery box are actually made of real gold. Over the years, we collect so many gifts and trinkets that is it becomes difficult to sort through! When you are selling gold, gold buyers will use a combination of the following gold tests and platinum tests to determine the pure metal content in your jewellery:

Magnet Test: Gold buyers hold a rare-earth super magnet (many refrigerator magnets are too weak for this test) next to the gold jewellery or platinum jewellery to see if there is an attraction. Gold and most platinum alloys are not magnetic, thus there will be no attraction. If the magnet does attract the gold jewellery, then it is either plated gold or not gold at all! When it comes to selling or buying platinum, cobalt platinum (platinum alloyed with cobalt) is also slightly magnetic. When gold buyers have a lot of gold jewellery to check, the magnet test is a quick and effective way of sorting out gold-plated rings, chains, and other jewellery having a base metal of iron or steel. It can even be helpful in differentiating cobalt platinum from other platinum alloys.

Fineness Stamp Test or Karat Stamp Test: After the magnet test, gold buyers look for a karat or fineness mark on the gold jewellery. Fineness is the amount of gold or platinum in relation to 1000 parts, whereas karat value is the amount of gold in relation to 24 parts; both mean the same thing, namely, how much pure gold is in an item of gold jewellery, but the mark is different. For example, an item of gold jewellery that is 75% pure gold can be stamped either 750 (gold fineness) or 18K (gold karatage). Platinum jewellery is normally 95% pure platinum, and is normally stamped PLAT950, 950, or simply PLAT. Gold buyers typically look for the karat stamp or fineness stamp on or around the clasp of a gold necklace, gold chain, or gold bracelet. On gold rings, gold buyers look inside the shank for this stamp, and on gold earrings, gold buyers typically find the stamp somewhere on the back of the gold earring or on the gold posts. Oftentimes, gold buyers will use a magnifying loupe to decipher the stamp.

Gold buyers look for this stamp as an indication of how much pure metal can be extracted from your jewellery. However, the karat stamp or fineness stamp is only an indication of gold content or platinum content, not proof. On the other hand, the lack of a stamp does not necessarily mean that the piece is not gold or platinum; it simply means that another test must be performed. Gold buyers should always tell you what the gold content or platinum content in your jewellery is.

Acid Touchstone Gold Test: Gold buyers frequently use acids to test gold. The gold buyer will rub an inconspicuous part the gold item (for example, an area near the clasp of a gold necklace or the
underside of a gold ring) back and forth onto a ‘touchstone’, which is a hard, fine-textured black stone sold in jewellery supply stores and some rock shops. Filing is sometimes necessary to detect to
detect any possible base metal (ie. to determine if the item is gold-plated). Various acids are then applied to the touchstone; depending on their reaction, an accurate determination of gold karatage is determined.

Electronic Gold Tester: Portable electronic gold testers use an electrical current to measure the fineness of gold. When the tip of the gold tester is applied to your gold, a reading appears indicating the fineness of gold.
There is much debate about the accuracy and effectiveness of electronic gold testers. While electronic gold testers may be accurate to within 2 karats (which still presents a pretty big difference for both gold buyers and those wanting to sell gold!), they don’t detect gold plating and gold overlay. Thus, no matter what gold testing method is used, the base metal below the gold plating or overlay must be tested in order to be detected, in some cases by filing through the overlay to the base metal below. With an electronic gold tester, if a piece is plated the reading will decrease in fineness the deeper the piece is filed and tested, while solid karat gold will continue to give the same reading.

Almost anything can (and probably has been!) used for ‘money’ as a medium of payment.  So, why is gold in particular associated with coinage and money? Why is gold such a universally recognised and accepted standard of value?

Gold is portable – Unlike many other commodities, gold is also relatively portable; gold can be melted down or cut into smaller pieces, though it does have limitations when it comes to everyday transactions…the amount of gold needed to pay for a loaf of bread is not only very difficult to cut and weigh, it would be so small that it would get lost easily lost! So, while gold buyers can not use gold in everyday transactions, gold buyers can always sell gold for its equivalent value in notes.

Gold does not degrade – Gold can be stored or hidden without fear that it will rot, rust, or be eaten by termites. Gold buyers can be certain that if they buy gold for investment, it will not depreciate physically.

Gold is durable – Gold is not destroyed by floods, fires, famine, or other natural disasters. Gold buyers can be confident that any gold will withstand just about anything!

Gold is divisible – Unlike investments of property and other commodities, gold can be melted into various forms and weights when required.

Gold purity or gold standard is uniform – Gold has a ‘standard’ unit of value, gold purity by gold weight. One ounce of pure gold is always one ounce of pure gold, unlike, for example, one carat of diamonds which are of variable quality and thus variable value. Perhaps the most vital factor to the acceptance of gold as money is that the standard of gold purity can be can be guaranteed and maintains its value; in other words, gold buyers can be confident that they can sell gold for near equal value in the future.

When buying or selling gold jewellery, it is very important to understand how the value is determined.  In order to make sense of the gold buying and gold selling processes, there are three common but often misunderstood terms: cost, price, and value.

Cost is used to define a wholesale figure on a piece of gold jewellery, or can be used as a definition of the actual amount of money it took to produce or manufacture the gold item.

Price is the amount of money asked for an item of gold jewellery (retail price).  Jewellers set prices.

Value, in terms of a valuation report for your gold, is an estimated figure of an item’s worth when used for a particular purpose.  The value attributed to a piece of gold jewellery on a valuation can vary immensely depending on what the purpose of the valuation is.

There are different types of value, each appropriate to a particular purpose and function. The most common types of values encountered are listed below.

Retailer Value or Valuation Jewellers and retailers often provide customers with in-store valuations when they are purchasing an item of jewellery. Consumers should be cautious of relying on retailer valuations – these gold valuations are often grossly inflated and used as selling tools to dupe you into believing that you are receiving a good “deal” when buying gold jewellery. A valuation should be very close to the actual price of the jewellery item, as this is the value for which it can be purchased.

Insurance Replacement Value or Valuation for insurance replacement The function of a valuation for insurance purposes is to determine how much it would cost to replace the jewellery should something happen to it. This being the case, the insurance valuation should be very similar to the price actually paid, as this is the actual realised amount that the item could be replaced for. Over-inflated valuations for insurance purposes serve only the interests of the insurance company. You, the consumer, pay premiums based on the valuation; if the valuation is over-inflated, so are your premiums. However, should something happen to your jewellery, the insurance company is able to replace the item for much less than the value you have been paying premiums on.

Intrinsic Value or Valuation  Also known as the gold scrap value, or gold melt value. This is the monetary return on the materials and components of an item; for example, the amount of pure gold in an 18K gold ring. Scrap value is unrelated to the cost of making the jewellery and to the price paid to a jeweller for an item; it is also unrelated to retailer or insurance replacement valuation. In determining melt value, the price is calculated from the spot gold price of the day, the purity of gold in your items (ie. 18K gold is 75% pure gold), and the weight of the item. Gold refining companies purchase items based on this calculated value – all gold is melted and refined into its pure gold state.

Auction Value is the price for jewellery sold to the highest bidder at an auction. When deciding where to sell your unwanted gold jewellery, special considerations should be taken into account such as: whether the item is an antique, its designer, or whether it is “one-of-a-kind” custom gold jewellery. Often, there can be a considerable amount of value in the quality of craftsmanship or the historical significance of an item.

The price of gold is at an all-time high, making this an excellent time to sell gold for refining purposes. However, you may be able to get more cash for gold jewellery that is of exceptional make or significance if you sell it as a whole piece of jewellery rather than breaking its value down into its separate components. Some other options for selling gold jewellery are:

1)      The first port of call is usually the jeweller from which the item was purchased, especially if the jewellery is still in new condition.  However, many jewellers will not buy back an item they have sold you because their profit margin would be exposed. In other words, rather than offer you a much lower price than you paid, they opt not to get involved with buy-backs.
 

2)      Online Auction – Websites such as Ebay are most suitable for well-known, designer-branded gold jewellery, or items where buyers can externally verify what the regular retail price of the jewellery is.

3)      Live Auction – Auction houses such as Sothebys or Christies will catalogue special pieces to sell at live auction.  As the seller, you may put a minimum reserve price on the items when selling gold at auction.

4)      Private Sale – Selling gold jewellery privately can be done in the same manner as, for example, selling a car privately.

5)      Pawnbrokers

For more information on valuations and selling gold jewellery, please contact The GoldCompany and we will be happy to assist.

http://www.goldcompany.com.au

Gold back over 1100, Gold Price Tuesday, 16th Feb 2010 $1,101.21 / Ounce

One of the most heavily invested markets in the world is Gold futures market, a market investors turn to when the general market falters. Gold futures trading on margin can make relatively small movements in the gold market yield large financial gains.

When investing in gold futures, you as the investor are agreeing to buy or sell a certain amount of gold at a future settlement date.

As an investor if you are confident that the price of gold is on its way up in the short term, you could profit off of that by just buying and selling gold. If you invested $1,200 AUS Dollars in physical gold you would buy $1,104 USD worth of gold AUS 0.92 cents to the US Dollar. If gold the rose to 1500 AUS per ounce you would have cleared a profit of $300 AUS; a great profit. But not terribly impressive for the risk involved.

Gold futures on margin changes the size of your investment enormously. Depending the market and the amount of money you risk, Your margin ranges from anywhere between 2% and 20% of the total amount of futures you buy. In today’s market, the margin on gold futures will be around 10%, This would mean $1,200 AUS investment will buy gold futures for $12,000 AUS, this is 10 ounces of fine Gold at $1104 USD an ounce. If you believe the price of Gold will increase the same amount, IE to $300 AUS an ounce. You would now have a profit of $3,000 AUS, even though you invested only $1,200 AUS.

Why the high pay out? Well because of the risk. You will lose money quickly when trading gold futures on margin if the trend reverses. If that same 10 ounces loses only 10% of its value, falling to $1080 AUS an ounce, then the entire $1,200 AUS initial investment will be gone. If the price decreases to the point where you near expending all of your initial $1200 AUS investment your margins will have to be topped up or your margin will be exercised, If you are unable to top up the margin, then the account is closed out, and you lose all the $1200 AUS.

The lure of gold futures is enormous, huge amounts of money to be made if played correctly, but the trend of the Gold price is critical and most people who trade gold on margin wind up losing.