As a jeweler it is unfortunate to see so many people apparently taken advantage of. I already knew this was happening as another jeweler on a newsgroup I belong to had sent some gold in to Cash4gold to see what they got paid and reported on the absurdly low amounts they paid. However, here are the things you have to remember whenever or wherever you're selling your gold. 1) Gold is weighed in troy ounces not avoir ounces. Your scales at home all weigh in avoir ounces so their weights and yours will not agree. 2) Gold that is 14k is only 58.5% pure gold (18k is 75%, 10 kt is 41.6%) so when you see that the price of gold is $900/oz (as it is currently) a one ounce piece of 14k gold is NOT worth $900 but only about $525. 3) Everyone in the process has to make some money. No one works for free. So if you go to a local jeweler with that 1 ounce of 14k he's not going to give you $525. He's going to pay you less because a) there is always a small amount of loss involved in the refining process, b) he has to pay to ship the stuff to a refiner, c) the refiner has to make a profit on their operation, d) the price of gold may not be the same on the day the refiner gets it (it could be higher or lower so he needs a cushion), e) occasionally even with tests some jewelers get fooled by the actual gold content so he needs a cushion built into all of his purchases for that and f) he has to make some money on the deal so that he stays in business. So at today's gold prices a reasonable amount to expect on that 1 ounce of 14k gold is about $300/oz. If you get someone to pay closer to $400/oz you're probably doing really well. But you have to really spend the time to figure out what you have and what it's ACTUAL worth is. That means you have to weigh it properly (there are charts to convert weights from avoir to troy ounces), use the formulas to figure out how much PURE gold you actually have, and remember that everyone who is in business has to make some money to stay in business. None of this means that I think Cash4Gold is a good business to send your refining to. I think they are probably one of the last options you should pursue. But I also think that no one who is only on the internet or who you are only working through the mail with is going to be a good bet. Go to your local jewelers or pawnbrokers (go to 2-3 if you want to get a really good idea of what it's worth) and use them. Buy local. Shop local. It is almost invariably your best bet. I'm printing my full name here but I do NOT buy gold from anyone so please don't email to ask me if I do. I'm just a jeweler who believes that honesty in my business is the cornerstone to a successful operation and that consumers have the right to full disclosure in all of their transactions in the jewelry industry.
Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC