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Gold Parties Explained Selling Your Unwanted Gold Jewelry

Gold Parties Explained Selling Your Unwanted Gold Jewelry

Gold parties have existed for several years, but the current bull market has caused their popularity to soar. More people than ever are deciding to sell their gold jewelry at these events. Some want to lock in the current high price per ounce; others are motivated by the chance to recycle their old, broken bracelets, chains, and mismatched earrings; and still others have adopted a minimalist lifestyle, and are taking the opportunity to clear away useless jewelry.

Most people simply want to raise money. They need funds to pay bills, have their vehicles repaired, or pay for long-awaited vacations with their families. A gold party gives them a chance to sell their gold jewelry, and fulfill these and other goals. Below, we’ll describe how they work, so you’ll know exactly what to expect when you arrive. We’ll also compare selling your jewelry pieces at these events versus selling them to an online buyer (you may be surprised by the differences).

What To Expect At Gold Parties

Unlike Tupperware and candle parties, where attendees are pressured to buy items, gold parties are organized so you can sell your gold jewelry for cash. Typically, the events are organized by a friend or family member. You’ll find food and drinks available when you arrive, and will have an opportunity to mingle with other attendees, many of whom you’ll likely know.

There will also be a jeweler or broker in attendance. This person will have brought a few tools, such as a scale on which to weigh your unwanted brooches, rings, and watches.

Every person at the party will have been encouraged beforehand to bring any gold jewelry they would like to sell. The broker sits in a separate room to ensure a private transaction. One by one, attendees are invited to bring their bracelets, watches, and other pieces to the broker, who weighs and calculates their value. He or she will make an offer on the spot, which you can accept or decline. If you accept the offer, you’ll be paid immediately in cash.

A lot of people find these events enticing since they can often leave with hundreds of dollars in their pockets. But it’s worth comparing gold parties to the experience of selling your gold jewelry online.

Gold Parties Versus Selling Your Gold Jewelry Online

One of the drawbacks to these parties is that most brokers will only buy jewelry (with a few exceptions). This means you will rarely be able to sell old gold dental work, gold alloys, or other scrap pieces that contain gold content. By contrast, many online buyers are willing to purchase these items, as well as any others that contain the precious metal.

Another key difference involves the offers extended by both types of buyers. The brokers who attend gold parties will typically sell your unwanted gold chains, wedding bands, and other items to refiners. They must offer a low enough price for your jewelry to make a profit when they sell it. Online, however, you can work directly with a refiner. By doing so, you can essentially remove the broker from the transaction, and sell your pieces for a much higher price. The result is that you’ll make more money.

Also, keep in mind that the person who is organizing the party usually receives a portion of the combined sales. This means the broker needs to lower his or her offer even further to compensate for the “commission.”

Yet another problem is that brokers who help organize gold parties will avoid purchasing jewelry pieces that contain a high level of non-gold content. In fact, many will bring a magnet to the parties to test each piece (gold is not magnetic). If a watch, ring, or bracelet sticks to the magnet, the piece is usually rejected.

Are gold parties worth attending in order to sell your old, broken gold jewelry? Maybe. The answer depends largely on whether you are willing to forfeit a much higher offer from an online refiner.

Tags: Gold Parties, Gold Party, Sell Gold

Should You Sell Your Old Jewelry At A Gold Party?

Should You Sell Your Old Jewelry At A Gold Party?

Gold parties have been popular for years. Today, with the economy uncertain and the price of gold flirting with its historic peak, more people than ever are becoming receptive to attending. If you own old gold jewelry that is collecting dust in storage, you can sell it at these parties to generate near-instant cash flow. The question is, are these events the opportunity they seem? Is it worthwhile to sell your gold items there, or can you enjoy a higher price elsewhere?

Below, we’ll explain how these parties work and the reasons you should avoid them. When it comes to selling your gold bracelets, rings, and chains, there is a much better option available to you online. We’ll provide a few tips and describe how you can take advantage of it.

How Gold Parties Work

The event is held in the home of a host. This person will arrange to have a gold appraiser attend. The host will also call his or her friends and family, and invite them to attend the party. These prospective attendees are strongly encouraged to bring any gold jewelry they would be interested in selling. This includes damaged or broken jewelry that cannot be worn without first being repaired.

When people arrive at the party, the host typically has food and beverages ready for them. Guests are encouraged to mingle and share stories about the individual pieces they have brought to the party to sell.

Eventually, the appraiser invites each attendee to have his or her gold jewelry appraised. This is typically done in private. The appraiser will determine the amount and quality of the gold in the pieces and make an offer to the attendee to buy the items at that moment. If the attendee accepts the appraiser’s offer, a check is immediately written.

The Problem With Gold Parties

Up to this point, the process by which people sell their gold jewelry at these parties seems fine. They have an opportunity to sell pieces that would otherwise remain hidden in their dresser drawers, attic, or boxes in their garage. However, it’s worth peering under the surface of the transaction.

The appraiser will usually give the host 5% to 10% of the appraised value of all items purchased. This is a commission. The problem is, many hosts choose not to communicate this fee to their guests.

Another issue with these parties involves the appraiser’s actions following the event. This person is merely a broker. They have no plans for the jewelry other than to sell it to a refiner for a large profit. This suggests you would receive a larger offer for your gold jewelry by working directly with the refiner.

A Better (And More Profitable) Option

One of the worst-kept secrets of the gold-buying industry is that brokers are middlemen who sell to refiners. By working with a refiner, you can effectively remove the broker from the transaction. Any profit that would have gone to this person as the result of their markup would instead be split between you and the refiner. That means you’ll receive a higher price.

Taking The First Step

So, how do you find a reputable gold refiner? The best place to look is online. Look for buyers who have been in the precious metals refining business for at least ten years. Visit their website and search for a phone number you can use to contact them. Look for details regarding how quickly a check will be mailed in the event you accept their offer (two business days indicates a high-quality buyer).

Once you have mailed your old gold jewelry to the refiner, you can expect to receive an offer as soon as they have examined each piece. The entire process is smooth and efficient. And it poses a far more profitable opportunity than selling your items at gold parties.

Tags: Gold Parties, Sell Gold, Sell Jewelry