Gold parties are very popular in America. Recently, we’ve noticed companies in the UK have started promoting the concept of holding a gold party. As this idea is relatively new here, Gold-Traders decided to take a closer look at the process.
What is a Gold Party?
Think of it as Tupperware party, only in reverse. A party host will invite their friends and neighbours around to their house, asking them to bring along any old, broken and unwanted items of jewellery for valuation. Also in attendance will be a jewellery appraiser who tests and values each item. If you’re happy with the price offered, you’re paid on-the-spot for your gold.
So, the concept of a gold party sounds good. However, does it offer the best value for the individual selling their gold? As companies who run gold parties tend not to publish their scrap gold prices on their web sites, it can be difficult to make an informed decision.
Let’s take a closer look at the costings…
First, there’s the party host who will receive a commission payment, typically around 10% of the total payout. If the party was booked as a result of a referral, there may also be a referrers commission payment of 2 – 3% to be accounted for. The jewellery appraiser who will be in attendance will have expenses to cover, which also must come from the profits made from the evening. Obviously, the company who facilitates the gold party will be looking to make a healthy profit from the evening, however before they can take their cut, all the scrap gold they have accumulated must first be refined, which will swallow up another 2 – 3% of the value.
Pure Gold Party – Gold Mine or Fools Gold?
So, does a gold party offer best value for the individual? Inevitably, with a business model that relies on paying commissions, the client selling their scrap gold will receive a lower price. From our own research, the best deal you can expect to receive when selling gold at a gold party is around 80% of its value. The worst scenario, you’ll only receive approx 60%.
By contrast, selling your scrap gold to a specialist scrap gold dealer, such as Gold Traders would result in a payout of around 90 – 95% of spot price (the value of your gold based on the current market prices).
Selling unwanted scrap gold to Gold Traders is both quick and easy. Simply complete our online claim form, package your unwanted jewellery in a good quality padded envelope and send it to us via Royal Mail Special Delivery. All claims are paid out on the day of receipt (weekdays only) so your money can be in your bank account within 24 hours of you sending us your gold.
If you have any questions or would like to discuss the process of selling scrap gold, please do not hesitate to contact us.