Golden Opportunity To Sell It?

Giving Your Wallet The Midas Touch May Be Harder Than You Think If You Want To Cash In On Your Gold

(CBS)  With gold worth over $900 an ounce these days, the craze seems to be to sell your gold, but what’s the best way to cash in?

Early Show consumer correspondent Susan Koeppen showed on The Early Show Wednesday where she got the best deal selling three identical 18 Karat gold rings at three popular venues: the jeweler’s, a gold party and online.

After three visits to different New York City jewelry shops, the highest offer was $52.

Helena Krodel of The Jewelry Information Center, a trade group for the jewelry industry, told Koeppen that is a realistic expectation.

At the gold party, Koeppen was offered only $38.

"If you’re going into this gold party thinking it’s going to be entertainment," Krodel told Koeppen, "maybe it’s a option for you."

But Koeppen received the least for the gold ring after sending it in to the popular Cash4Gold company. Koeppen received a check in the mail for only $8.95.

Krodel said the amount was "absolutely unacceptable."

Koeppen added that Cash4Gold also takes a percentage and pays for postage and insurance.

However, all of Koeppen’s dealings fell short of the rings’ actual value, according to The Jewelry Information Center, of $58.

"People are discovering the gold rush isn’t what it’s cracked up to be," said Krodel.

When asked by Koeppen if people are getting ripped off, Krodel said "buyer beware."

Koeppen told Early Show co-anchor Harry Smith The Jewelry Information Center recommends getting at least three estimates before you sell your gold.

[KatieKupferschmid]

This is Katie Kupferschmid, I'm the gold buyer on your piece that aired this morning.

This was an irresponsible piece of journalism for a few reasons.

If that ring was 2.4 grams of 18k gold. At 100% of the value, a buyer would pay $22.60 per gram (for a total of $54 if gold was at $950 an ounce)
That is the value of the ring, NOT what a buyer would buy it for. Commissions are not accounted for.

My party was on 5/5/09, Gold was selling at about $920 an ounce, since then, the price has gone up to almost $990. You are not taking into account the fluctuating price of gold.

You also said that you took the highest price offered from three jewelers - why didn't you take the average price, or mention the other offers you got? And why do you have the jewelers face blocked out? It would seem to me that if this were legitimate, he'd be happy to have his contact information shown. Is he legal?

I have very little overhead in my business, I'm licensed and bonded, and my prices have never been beaten.
I'd like to see a follow up story including all the facts.

Please feel free to contact me anytime