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  • 21/04/2010 - Understanding valuations when buying & selling gold jewellery

    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.

  • 15/03/2010 - BINGLE’S ENGAGEMENT RING BUNGLE

    Weekend media has reported Lara Bingle’s ring has been flushed down the toilet of the couple’s $6 million Bondi apartment.  Allegedly still missing and with plumbers frantically trying to find the 4.7 carat sparkler, pop culture website Popsuger.com.au has posed the question what Lara should do with her ring now her engagement with Michael Clarke is over.  The poll (see full details below) found 77% of respondents believe she should give the ring back – even though this goes against traditional engagement protocol according to Australia’s leading gold and diamond expert, Roy Cohen, CEO of The Gold Company and the Diamond Certification Laboratory of Australia (DCLA).  Cohen also argues the ring may be worth as little as $50,000, far less than its original $200,000 valuation.

    “Tradition dictates an engagement ring is to be treated like a contract, the man gives the woman the ring as a declaration of their impending marriage.  Whoever reneges on the contract, as in whoever breaks the engagement, is the person who forfeits any right to the ring.  So if the rumours are true and Michael did call off the engagement, then the 4.7 carat sparkler that was bought for $200,000 from Sydney jeweller Nic Cerone should be kept by Lara.”

    What should Lara Bingle do with this ring is the next big question (providing it is found).  Australia’s leading diamond and gold expert Roy Cohen offers the following points;

    • GO BACK TO THE RETAILER: The first port of call is for Lara to return to where she bought the ring and see if the retailer will buy it back.  Do not be surprised if the retailer refuses to buy the ring back.  Most jewellery is sold at high margins, sometimes double or triple the cost price. If the seller buys back the ring, the massive mark-up they charged will be exposed.  Lara will be offered a substantially lower price than the $200,000 Michael Clarke paid for it.
    • RETAILERS EXAGGERATE: Also the retail price you paid included GST which you won’t get back when you sell. But this is only part of the story.  Many retailers use valuations as selling tools. The valuation is inflated to convince you that what you are buying is much more valuable than what you are paying and that you are getting a fantastic discount! Valuations supplied by the retailer don’t just overstate the value, they often exaggerate the quality of the jewellery as well. So expectations when selling are also exaggerated.
    • TRUST ONLY EXPERTS: The 4.7 carat pear shaped diamond in Lara’s ring may only be worth $50 000, but if it is a decent quality stone, it could fetch up to around $100 000.  Only a certified diamond grader is qualified to assess a gem of this calibre.
    • THE RING’S ACTUAL WORTH: Often the best price an ex can get for her engagement ring will be the value of the commodities which make up the item; the gold and gemstones. When your engagement ring has many small stones there is often more value in the ring’s workmanship and setting of the piece than in the stones themselves – so the value falls massively short of the resale.
    • THE GEM IS JINXED: An ex who is selling her ring will usually not want to keep the gem and have it reset into a new jewellery item.  The gem is a symbol of the failed relationship and is not something she would want to keep as a reminder.  In fact, many consider the gem jinxed.
    • BE WARY OF UNSCRUPULOUS BUYERS: When selling your gold or gems – deal only with professionals who are experienced at grading these precious items.  Too many companies have started up recently in Australia that claim to offer this service, yet are seriously under experienced and as a result are offering far less than the market value for these items.

    The Gold Company has been independently* investigated to pay the highest price for people wishing to sell their gold and DCLA is Australia’s only independent diamond grading laboratory, internationally affiliated and recognised.

    At The Gold Company, sellers can complete a form on the company’s website to obtain a prepaid Goldpak, which will transport the jewellery free of charge for evaluation, or they can take their gold items to The Gold Company’s off-street headquarters in Sydney’s CBD.

    MEDIA ENQUIRIES: Drew Lambert (02-9775-7080 / 0425 200 606) or Nicole Joseph (02- 9775-7000/0402 278 934)

    The Gold Company, Suite 1, Level 1, Piccadilly Tower, 133 Castlereagh Street Sydney

    Toll free 1300 506 707    Direct line 02 9020 5150 Fax 02 9261 4263

    * 11 August 2009: A Current Affair priced the same parcel of gold with three different buyers of gold with prices received varying from $250 to $950; a difference of more than 350% between the highest and lowest price. A Current Affair nominated The Gold Company as the dealer offering Australia’s highest return for unwanted gold items.

    ABOUT THEGOLDCOMPANY.COM.AU:

    The Gold Company is a gold refiner and is the convenient, safe and discreet way to sell your unwanted gold. It provides a trusted online service that is endorsed by the Diamond Certification Laboratory of Australia (DCLA), Australia’s premier diamond grading laboratory. Sellers can visit the company at their Sydney offices or complete a form on the website to obtain a prepaid Goldpak.

  • 05/03/2010 - Read what the press are saying about The GoldCompany!

  • 04/03/2010 - SELLING YOUR GOLD? TOP TIPS FOR AVOIDING DODGY DEALERS

    With gold prices reaching record highs over the past 12 months, numerous gold buying companies have emerged around Australia offering consumers prices far below what is considered reasonable.  Australia’s leading buyers of gold, The Gold Company, has witnessed a massive discrepancy between the prices reputable gold buyers are paying, and the money people are receiving for the same parcel of gold from companies that offer no expertise in the buying of precious metals.

    “Different buyers may offer vastly different prices as a result of differences in cost structures, procedural efficiencies and profit margin requirements,” commented Roy Cohen, precious metal buyer from The Gold Company.  “As shown recently on A Current Affair, prices for the same parcel of gold varied from $250 to $950; that is a difference of more than 350% between the highest and lowest price. That’s enormous!  We’re proud to say A Current Affair nominated The Gold Company as the dealer offering Australia’s highest return for unwanted gold items.”

    “While the industry does contain very reputable precious metal buying companies, there are dealers who are wildly undervaluing gold parcels, have poor customer service and are generally ripping off customers.

    The Gold Company offers a few golden rules for selling

    • Do your research and know what your gold is worth. The weight and purity of your gold determines its value.
    • The carat value is a unit for expressing the proportion of gold in an alloy on a scale from 1 to 24 (24ct is pure gold). For example, 18 carat gold is an alloy, containing 75 per cent gold. Most items are stamped with the carat value for that item.
    • It is pretty easy to determine approximate value. Separate the gold into 9ct, 14ct, 18ct etc… Then weigh each batch separately. Multiply the weight by the percentage of gold in the batch (e.g. 0.375 for 9ct) and then multiply that by the gold price of the day. That figure, less the refining costs and profit of the buyer, is what you should be offered.
    • Different buyers offer vastly different prices as a result of differences in cost structures, procedural efficiencies and profit margin requirements.
    • Be aware that you may be offered significantly less than the retail price you paid for an item.  The reason for this is because part of the retail price paid, incorporates the jewellery’s design and manufacture, as well as the jeweller’s profit
    • Compare prices and make sure you are dealing with a reputable and honest buyer. If you are not sure you are getting the right price, shop around.
    • Make sure you deal with a company that gives you the option to accept or refuse the offer with no hidden cost to you.
    • Make sure they have contact numbers listed for you to talk to someone and an address that you can visit there offices if necessary.

     

    At The Gold Company, sellers can complete a form on the company’s website to obtain a prepaid Goldpak, which will transport the jewellery free of charge for evaluation, or they can take their gold items to The Gold Company’s off-street headquarters in Sydney’s CBD.

  • 01/03/2010 - BE VERY wary selling unwanted gold jewellery on your next trip to the local shopping centre.

    I conducted a secret shopping test yesterday and discovered a price differential of up to 70 per cent, with the shopping centre kiosk operator Gold Buyers coming in last by a long way.

    Gold Buyers' Westfield Chatswood offered me $140 for an 18-carat bracelet.

    I then went to Ian King's Loan Office in Merrylands, which was willing to pay $170. At Gold Traders of North Sydney the offer was $202.

    Next was Saffo Jewellery in Castlereagh St in the city. They said they would give me $238.

    My final visit was then to The Gold Company, also in Castlereagh St, where they were willing to part with $225.

    So from top to bottom the difference was $98, or 70 per cent, with Saffo on top.

    ``We know we pay more,'' Saffo general manager Lilian Haddo said. ``But we can still make money at that price.''

    Which makes you wonder how much Gold Buyers is making. The chain has gone from one kiosk at Westfield Eastgardens to 31 in just six months. There are 150 across Australia.

    When I quizzed NSW manager Maurice Levine about the price discrepancy, he claimed that had I gone a day earlier he was confident that Gold Buyers would have offered the best price in the nation.

    However Gold Buyers only offered Denise Moss $850 for three pieces of gold jewellery earlier this month.

    She ended up selling the items through The Gold Company for $1300 -- a 53 per cent improvement.

    Anthony Whittaker was offered $3000 by Gold Buyers. He got $6000 from The Gold Company.

    Mr Levine also said that Gold Buyers was ``on a mission to save the environment'' by recycling gold. Also, ``a lot of our customers don't go to pawn brokers'', he said. ``They like the convenience of being in a mall, of being somewhere safe and comfortable.''

    Source: Daily Telegraph

  • 25/02/2010 - Green Gold is Clean Gold

    Helping to reduce the impact of traditional gold mining

    The country’s leading recycler of gold, The Gold Company, today revealed the answer to reducing the environmental impact of gold mining, recycling gold. The switch to ‘greener’ gold comes amid reports* in some countries a gold mine can process 20 tons of mine waste in order to produce a single gold ring.

    With 80% of all gold produced in the world used to make jewellery, Australians have a great opportunity to make a major impact and not only reduce the carbon footprint that mining so much rock and ore creates but also reach into this untapped source of using the gold we already have.

    “Although Australian miners have the highest standards of mining in the world, it is quite shocking when you realise 20 tons of mine waste is produced to make a single gold ring in some gold mines,” commented Roy Cohen, co-founder of The Gold Company. “What’s even more alarming is that in some third world countries this waste includes cyanide and other deadly toxic chemicals used to separate gold from waste rock. I urge all Australians to join the ‘green-gold’ movement and recycle the scrap gold lying around their house so we’re less dependent on using newly mined gold. We like to call this way of thinking as ‘urban mining’; it’s a much better option for our environment.”

    “When you consider the amount of fossil fuels needed to move 20 tonnes of earth to produce one gold ring, it’s no wonder our environment is hurting. While some gold mines have become more eco friendly recently, no mining is more eco friendly than urban mining,” added Cohen.

    Once you have sold your gold to The Gold Company, it gets melted down and refined into ingots, which are used to produce jewellery. Refining your unwanted or broken jewellery omits the environmental damages and impact of mining new gold.

    “I believe there is enough gold above the ground and in our jewellery boxes to satisfy Australia’s demand for gold for countless years. Our records show the average customer has a massive $544.80 of unwanted gold items in their possession. Many cash strapped Australia’s could be sitting on a gold mine and they probably don’t even realise it.”

    The Gold Company offers a safe convenient method of selling unwanted gold jewellery, watches, dental gold, nuggets, coins and any anything else gold, silver or platinum. The Gold Company recycles your old gold, silver and platinum. By refining your broken or unwanted gold back to pure fine gold, The Gold Company compliments the gold supply from traditional gold mining and increases the supply of gold in the market. And you make money in the process.

    * Figures sourced from No Dirty Gold website: http://www.nodirtygold.org/

  • 17/02/2010 - Is gold the next currency for an ageing Australia?

    The main demographic of people selling gold jewellery, coins and ingots is the 55 to 80 year old bracket. Sometimes referred to as ‘scrap gold’ it is now being sold at unprecedented rates. The reason may be two-fold.

    The price of gold is now at its highest on record and with the global financial crisis cutting into the retirement and superannuation savings of many people, the sale of gold may be another way of supplementing income for the elderly.

    A spokesperson from the retail gold sector, Michael Cohen of the Gold Company, reported that prices paid can vary from $250 to $950 an ounce depending on the company that consumers are dealing with. Mr Cohen advised that it is easy to determine approximate value.

    “Separate the gold into 9ct, 14ct, 18ct etc… Then weigh each batch separately. Multiply the weight by the percentage of gold in the batch (e.g. 0.375 for 9ct) and then multiply that by the gold price of the day. That figure, less the refining costs and profit of the buyer, is what you should be offered.”

    Other good tips for prospective sellers is to make sure you deal with a company that gives you the option to accept or refuse the offer with no hidden cost to you; ensure they have contact numbers listed for you to talk to someone and an address that you can visit their offices if necessary; and if you are not sure you are getting the right price, shop around.

  • 03/02/2010 - Advice to follow when selling your Gold

     

    There is a saying when it comes to Diamonds. If you don’t know diamonds, know your jeweller!

    With gold, if you do not know exactly what you have got and how much it is worth, then make sure you know who you are dealing with.

    The Value of your gold is determined by weight and purity (carat value)

    The carat value is a unit for expressing the proportion of gold in an alloy on a scale from 1 to 24 (24ct is pure gold). For example, 18 carat gold is an alloy, containing 75 per cent gold. Most items are stamped.

    It is pretty easy to determine approximate value. Separate the gold into 9ct, 14ct, 18ct etc… Then weigh each batch separately. Multiply the weight by the percentage of gold in the batch (e.g. 0.375 for 9ct) and then multiply that by the gold price of the day. That figure, less the refining costs and profit of the buyer, is what you will be offered.

    Different buyers may offer vastly different prices because they may have differences in cost structures, efficiency and profit margins.

    Be aware that you may be offered significantly less than the retail price you paid because part of the price covers the jewellery’s design and manufacture and the jeweller’s profit.

    As shown recently on ACA prices for the same parcel of gold varied from $250 to $950 that’s more than 350% difference between highest and lowest price. That’s enormous!

     As the price of gold reaches record highs, many companies are now actively looking to buy gold jewellery from the public.

    Make sure you deal with a company that gives you the option to accept or refuse the offer with no hidden cost to you.

    Make sure they have contact numbers listed for you to talk to someone and an address that you can visit there offices if necessary.

    If you are not sure you are getting the right price shop around.

  • 05/12/2009 - The GoldCompany - Gold Buying Online

  • 27/10/2009 - Selling your gold? Don't get short-changed!

    Recently more and more people are taking advantage of record gold prices and turning their unwanted gold to cash. But how do you know if you are getting the right price? Some buyers pay consumers a fraction of the true value of their gold.

    The value of your gold is based on how much fine gold is in your items. This is determined by the weight and purity of your gold. So check your gold and compare prices being offered by the various buyers, some are more honest than others so stick with a professional company that specialises in precious metals.

    There are various options available when selling your gold:

    1. Auction, whether online or physical, an auction is a good avenue for items that are desirable and may yield more than gold value
    2. Jewellers may be able to resell some items and therefore pay a higher price
    3. Specialist precious metal buyers and refiners will pay you the market value for your gold.

    The fact is that most jewellery is difficult to resell and in some cases is sold for less than its gold value. So if you are unable to sell as an item of jewellery, your best price will come from a reputable refiner or precious metal dealer.

    The sad truth is that every gold buyer pays a substantially different amount for your gold. As seen on A Current Affair (ACA) different buyers offered vastly different amounts for the same parcel of gold.

    • $250 from Cash Converters
    • $600 from a local jeweller
    • $777 from a precious metal buyer
    • $950 from The Gold Company

    The highest offer is almost 4 times as much as the lowest!

    The Gold Company specialises in refining gold, platinum and silver. The founders of The Gold Company are staunch consumer advocates believing passionately in transparency, honesty and ethics.

  • 10/09/2009 - What to do with Grandma's old Gold

    CASH in on the high Gold price at The Gold Company where you get the highest possible price for your old Gold.

    Call us on 1300 506 707.

  • 10/09/2009 - The Gold Company on Current Affair

    The Gold Company featured on the current Affair program in Australia last night, to view the program click on the link.