The number one thing to look for when selling gold jewelry (no matter if you have a single bent earring or a massive hoard of scrap gold) is someone you can trust and is straight-forward and honest. It doesn’t matter if you’re dealing small-scale or large, an awful lot of trust is needed between gold buyers and sellers if there’s to be any hope of a fair transaction for everyone involved.
The opposite is also true. If you meet a gold buyer who seems somewhat untrustworthy, and won’t give you straight answers to basic questions, chances are there’s a reason for this mis-trust. After all, you’re basically asking someone to evaluate items of value and then buy those items from you for whatever value they assign. When in doubt, go with your gut!
That brings us to today’s topic: Word misdirection to watch out for… Pennyweight instead of Grams
Note: Not all gold buyers who pay for scrap gold by pennyweight are out to rip you off, this is just one trick that *some* of them use…
One thing I’ve noticed a few scrap gold buyers doing lately is fooling sellers into thinking they’re getting more money by focusing only on the dollar amount paid per unit and either forgetting about the unit of measurement entirely, or at least making it more confusing.
The majority of gold jewelry sellers are not familiar with many of the terms thrown at them and as such, are on information overload and won’t be able to remember many finer details explained to them by scrap gold buyers.
ONE THING the gold sellers DO REMEMBER, is the DOLLAR AMOUNT PER WEIGHT UNIT (even though they likely don’t remember WHAT the weight unit was).
So if most of the scrap gold buyers in town are paying around $10 per gram for 10k gold jewelry, a nefarious buyer may step in and emphasize how they will pay $12. Most people focus on the dollar amount and don’t realize the nefarious gold buyer never mentioned the weight unit. But if he’s paying $12 per pennyweight when others are paying $10 per gram, you’re getting ripped off when you may think it’s the best deal in town.
Grams vs. Pennyweight
Here’s why… it takes over 50% less pennyweight to equal one troy ounce than it does grams. In other words, there are a lot more grams in an ounce than there are pennyweight so for one ounce of scrap gold, you’d get a lot more $10 payments than you would $12 (per the example above).
Here’s how the conversion breaks down:
1 Troy Ounce is equal to…
* 20 Pennyweight * 31.1 Grams
and 1 Pennyweight = 1.555 Grams
In the example above, gold buyers paying $10 per gram are also paying $15.55 per pennyweight, which is a good deal more than the $12 guy.
So the next time you’re selling gold jewelry, pay attention to the weight units used when calculating how much cash you’ll receive. If the gold buyer wants to pay in pennyweight, and focuses only on a dollar amount while dodging other questions (or providing vague or incomplete answers), my advise is to trust your gut and take your scrap gold elsewhere.