Avoiding Cash For Gold Party Problems

by Sam Rivers

Many companies offering cash for gold parties are highly professional and offer fair payouts to customers in the industry. However, some cash for gold party companies are plaguing the industry with a bad reputation by scamming or short changing customers on their gold jewelry. To be an informed participant at a gold party and to ensure you receive a fair amount for your gold items you need to know a bit about how your gold items are appraised.

Jewelers and gold brokers use two measurements for weight when assessing gold at a cash for gold party: one troy ounce is equivalent to 31.1 grams and one DWT is equal to 1.56 (also known as pennyweight). If you are attending a gold party hosted by a company you are not familiar with it is important to personally weigh each piece of gold jewelry you plan on bringing to the party. Weighing your gold before hand will give you the opportunity to make sure the jeweler is using an accurate scale and recording weights similar to what you found.

The second action you should do before attending the cash for gold party is to check the gold karat of each piece of jewelry. Pure gold is 24k or 999.9 purity. Twenty-one karat is 0.875 pure (21/24=0.875), 18k is 0.750 pure (18/24=0.750), 14k is 0.585 pure, and 10k is 0.417 pure. When the jeweler has the weight and karat of each piece of jewelry he/she will take the current price of gold per troy ounce, divide the price by 31.1g (one troy ounce), and multiply the resulting number by the karat of the gold.

For example: If today's price of gold is $1000 per troy ounce
1000÷31.1= $32.15 per g
For 14k, $32.15 x 0.585 = $18.81 per gram

Because no business can function without a profit you will not receive the exact amount you may have estimated for you gold's worth, but by making sure you are working with a reputable cash for gold party company that guarantees the highest payouts for your gold you can save yourself from those companies looking to scam you.

Sam Rivers works in management at Generation Jewelers, a family-owned business with over 75 years experience in the jewelry industry. Mr. Rivers is a noted author and lecturer on selling and appraising gold and jewelry. He can be reached at http://www.premieregoldparties.com/Atlanta-GA.html.