CONVERTING FINDS TO CASH

Page 2

Any TH'er hunting parks, yards, schools, beaches, etc., should eventually squirrel away some gold and silver jewelry. When attempting to peddle this stuff you will probably only be offered a price based on the current "spot price" of precious metals. This is kosher for some items and there are many establishments who buy and sell on the daily fluctuating price of precious metals. Don't think you can just waltz into some of these joints and expect a fair deal. That's why it behooves you to be prepared and have your act together before taking this step by knowing the purity and weight of what you wish to sell and know how to figure its bullion spot price. Latching onto a metallurgical test kit and a small scale will solve this problem. These can often be found advertised in treasure hunting magazines.

When figuring for gold you use "DWT" or the penny weight system of measurement. One ounce of gold equates to 20 DWT. and gold content is measured in karats with a higher (K) rating equating to a larger gold content. Remember gold is measured in "Troy" ounces with only twelve ounces to the pound. Suppose you weigh an 18K ring and it totals 6 DWT. Checking Table 1 we see that equals .3 or nearly one-third ounce of metal.

Looking at Table 2 we see 18K gold has a purity of .750% with the remainder consisting of alloy. Multiplying the weight of the ring by its purity (.3 X .750 ) will give you the salable gold content, which is .225% of an ounce.

Now multiply .225 by the current spot price of gold, which is listed in the newspaper, and is usually the prior day's closing price. For an example let's say gold is going for $400 per ounce that day. Multiplying .225 by $400 will give you the pure bullion value of your ring, which would be $90.00. It will then be up to you to accept or decline this offer.

Silver is measured basically the same way, with jewelry marked "Sterling" equating to a purity of .925, as is listed in Table 3. So if you have six ounces of sterling, multiply this by .925 and you wind up with 5.650 ounces of pure silver. You then multiply this by the spot silver price. If silver is listed at $5.00 per ounce then you wind up with a bullion value of $28.25.

Note in Table 3 that pre-1965 coins are .900 pure, so this is the figure you will use to compute the value of your silver coins. Be sure to check the numismatic value first before peddling them to be "melted down." Shop around when silver prices are on the rise as competing dealers will advertise their rate per dime, quarter, half, etc.
Be leery of dealers who ask how much you want before evaluating the item. This is highly unethical and you are assumed by these dealers to be some dumb boob who just hopped down off a turnip wagon who doesn't have a clue to the correct procedure. It is highly likely that this dealer is hoping you dumb out and save him the trouble of slipping it you, or sell out of desperation. Run, do not walk to the nearest exit as this guy is a real picaroon and about to lower the boom on you.
Another bit of advice when in the world of sharks: Never let your item leave your sight. Stay glued to it and follow it wherever it goes. A reputable dealer will perform all tests in your presence and not in some back room. If you are peddling a precious stone, be extremely careful, especially with diamonds as they can be switched in a heart beat and you can wind up the proud owner of a pretty piece of glass. If you think you have a high grade stone get an approval from a gemologist, who has no interest in the purchase. Once you know the real value, you can't be cheated, only out dickered.

So you see, there is more to this game than just waltzing in somewhere and peddling your goodies. Getting top buck for your treasures will take some effort and a modicum of smarts on your part. In summary these are the basics:

(1) Attempt to deal with honest, reputable people.

(2) Be as trustworthy as you would expect from others.

(3) Don't operate haphazardly in any way.

(4) Be sure to have all the facts before entering into any agreement.

Most of all, don't fall prey to the piranhas. They are waiting out there to strip you clean. ---BR  srevis@ix.netcom.com