The Gold Party Scams How They Do It…
THE GOLD PARTY SCAMS HOW THEY DO IT 4-29-2008
THE PURPOSE OF THIS LETTER IS TO EXPLAIN WITH NUMBERS HOW YOU CAN BE CHEATED AT THESE
GOLD PARTIES WHICH ARE GOING ON AT HOMES, RELIGIOUS PLACES, SCHOOLS.
FIRST LET’S AGREE ON ONE SIMPLE THING “ NO BODY DOES BUSINESS TO LOSE”.
I WILL START WITH SIMPLE NUMERICAL VALUES.
1- ONE TROY OUNCE = 31.103 GRAMS
2- 1 DWT = 1.5551 GRAMS ( THIS IS KNOWN ALSO AS PENNY WEIGHT )
3- PURE GOLD IS 24 KARAT OR 999.9 PURITY.
4- 21 KARAT GOLD IS 0.875 PURE OR 21/24= 0.875
5- 18 KARAT GOLD IS 0.750 PURE OR 18/24= 0.750
6- 14 KARAT GOLD IS 0.585 PURE OR 14/24= 0.585
7- 10 KARAT GOLD IS 0.417 PURE OR 10/24= 0.417
THE DAILY PRICE OF GOLD WE SEE ON THE NEWS EVERY DAY IS FOR ONE TROY OUNCE . IF YOU DIVIDE THAT PRICE BY 31.103 GRAMS YOU WILL FIND THE PRICE BY ONE GRAM OF 24 KT GOLD.
FOR EXAMPLE :TODAY’S PRICE $880 PER OUNCE DIVIDE BY 31.103, THIS GIVES 880/31.103=$28.29 A GRAM
FOR 21KT , THE PRICE IS $28.29X 0.875=$24.75 A GRAM.
FOR 18KT , THE PRICE IS $28.29X0.750 =$21.21 A GRAM
FOR 14KT , THE PRICE IS $28.29X.585 =$16.54 A GRAM
FOR 10KT , THE PRICE IS $28.29X.417 =$11.79 A GRAM
SOME OF THE GOLD COMES WITH CUBIC ZIRCON OR OTHER SYNTHETIC STONES, AND SOME ARE NOT
EXACTLY ACCURATE IN KARAT. AFTER MELTING WHAT WE BUY WE NORMALLY LOSE FEW GRAMS ,
AND 0.5 POINT IN KARAT WEIGHT.
WHEN WE SELL THE SCRAP GOLD , WE GET 93% OF THE DAILY PRICE OF GOLD AT THE TIME OF SALE,
SIMPLY BECAUSE THE REFINERY WANTS TO MAKE SOME PERCENTAGE .
NOW, WE WILL SHOW IN NUMBERS HOW PEOPLE GET CHEATED !!
IF WE TAKE ONE GRAM OF 21KT AND SELL IT AT TODAY’S PRICE…
$24.75 X93/100=$23.01 PER GRAM
TODAY WE PAY OUR CUSTOMERS $19.50 PER GRAM.
THE PROFIT PER GRAM IS : $23.01- $19.5=$3.51. WE HAVE TO PAY TAXES AT THE END OF THE YEAR ON ALL OF OUR PROFITS.
THE PROFIT PERCENTAGE PER GRAM=3.51/23.01=0.152 OR 15.2%
HERE IS THE SCAM………… IF THOSE PEOPLE SPONSORING THE PARTIES AND PAY WITH CASH, PAY
10% COMMISSION TO THE HOST AND 5% TO THE PERSON REFERRING THE HOST TO THESE PEOPLE, AND TO PAY THEIR EMPLOYEES WHOM ARE DOING THE ACTUAL BUYING THE NUMBERS WILL SHOW
A DEFINITE LOSS EVERY TIME EVERY PARTY, THIS IS IMPOSSIBLE………
IN ORDER TO MAKE A PROFIT THESE PEOPLE MUST CHEAT ON THE WEIGHT, THEY BUY YOUR GOLD BY DWT OR PENNY WEIGHT WHICH IS EQUAL TO 1.555 GRAMS, THEY PAY YOU FOR 1 GRAM (ONE GRAM),
THIS MEANS THEY CHEATED YOU OUT OF ALMOST 1/3 OF YOUR MONEY.
THE SECOND WAY IS TO CHEAT ON THE KARAT, BY TELLING YOU THAT YOUR GOLD IS LESS KARAT THEN IT ACTUALLY IS, SOME OF THE PEOPLE WHOM ALREADY WENT TO THESE PARTIES WILL HAVE TOLD US THAT THIS HAS BEEN DONE TO THEM INCLUDING MY OWN DAUGHTER.
THE THIRD WAY IS TO PUT ALL THE DIFFERENT KARATS TOGETHER ON THE SCALE AND PAY YOU FOR
LOWER KARAT PRICE.
THE FOURTH WAY IS TO OFFER YOU AN AMOUNT OF CASH FOR YOUR GOLD LOWER THEN ACTUAL VALUE AND SEE IF YOU WILL ACCEPT IT.
THE FIFTH WAY IS TO CONVINCE YOU THAT THE KARAT STAMPED ON YOU GOLD IS NOT CORRECT,
BECAUSE OTHER COUNTRIES MAY HAVE A STAMP ON THE YOUR GOLD THAT YOU DO NOT UNDERSTAND, HE CAN THEN TELL YOU THAT YOUR GOLD IS NOT THE KARAT YOU THOUGHT IT WAS.
ONE OF THESE GOLD COLLECTORS WHO IS CALLING HIMSELF
( REFINER) DOES NOT HAVE EVEN AN ACTUAL ADDRESS FOR HIS REFINERY,AND DOES NOT REFINE ANYTHING, HE SELLS $500,000.00/WEEK TO THE SAME REFINERY WHERE WE SELL OUR GOLD, WE RECEIVE 93% FOR OUR SCRAP, HE RECEIVES
92% FOR HIS GOLD BECAUSE HE WANTS CASH FOR HIS GOLD.
FINALLY, WE LIVE IN THE COMMUNITY THAT WE ARE DOING BUSINESS IN JEWELERS, WE ARE LIKE LOTS OF HONEST JEWELERS IN YOUR COMMUNITY,WE SUPPORT LOCAL SCHOOLS, LOCAL RELIGIOUS AND NON PROFIT ORGANIZATIONS, WE ARE HERE TO STAY, NOT TO CHEAT, AND RUN WE PAY OUR TAXES LIKE ALL OF YOU DO.
MY ADVISE TO ALL CUSTOMERS, BEFORE YOU SELL YOUR GOLD AT THESE PARTIES, WEIGH YOU GOLD AT YOU JEWELER, DIVIDE YOUR GOLD INTO BAGS ACCORDING TO KARAT WEIGHT, AND ASK FOR THEIR PRICES , THEN COMPARE BETWEEN THE TWO.
Read What Happened When We Sent Someone To One Of These Gold Party’s
Filed under: Jewerly store Michigan, N.J.Diamonds, dearborn, jewelry, jewelry news, news, sell | Tagged: buy, cheat, dearborn, gold, gold party's, michigan, scam, sell
I wold never go any place, but here to sell my gold, they are professional, and explain every thing to you as they go. What they showed me with the scale is a big eye opener, if you go in ask them to show you on the scale the difference between gram weight, and penny weight you all will be in for a big surprise. Stay away from the gold party’s even if they are saying its for a good cause like a school, or a church in the end the one who is hosting the party is walking away with 10%, and all of this is done on public property if it is being done in a school that is.
I was at this store last week to sell my gold seeing the gold price now I wish I would have held off a little more, but it was up to me to sell or not. Well this store lived up to what every one had been telling me, you see I did go to a gold party as a matter of fact I went to two of them what I did was write down my gold weight at the party’s, and then I took my stuff to this store. Someone at one of the party’s told me not to bother with the gold party that the best price, and most honest was at this store. So that is what I did, and sure enough the weight of my gold was a lot more at n.j. diamonds they are buying by the gram. I called my friend and told her about the difference in weight, she could not believe it, or at least she acted like she was surprised, she did make money out of the deal so it would be in her best interest to act shocked.
They wrote every thing down for me, and they did divide every thing up into gold karat I was so surprised by my weight of gold the difference was about 10 grams all together so what is being said about these gold party’s is true. I just thought I would let all of you know what is going on funny thing is I was invited to another gold party this week, when I told them what had happened to me they canceled the party who wants to steal from their own friends, and that is what you would be doing if you have one of these in your house you are stealing from your friends whether you know it or not.
I have read your article on gold parties and could not help but respond. I have attended one of these parties and did get a price from TWO local jewelers first. Not only did I get substantially more from the party but one of the jewelers did exactly what you said that the buyer at the party would do. They tried to pay me 14k prices for my 18k and then said “I’m sorry, I made a mistake”. They have been in business a long time and I do not feel that it was a mistake. I understand that you must be upset about parties taking business away from you but to mislead everyone is really a terrible thing to do.
I would just like to take a moment to respond to unhappy reader. We do not have any business being taken away from us, we are doing just fine. I am so happy you took your items to a jewelry store to have them weighted, and priced first it is not our intention to not have you sell at a gold party it is our intention to make sure you do not walk into a party blind. Not every jewelry store is on the up, and up unfortunately you will find some that may try, and do the same thing to you as some of these gold parties. If you got a good price at a gold party good for you that is what we want for all of you, this is your jewelry, but when we hear story after story of women who are being ripped off we as a respectable jewelry store must speak out, we must give as much information as possible to the public to protect them selves. Unhappy reader next time you want to go to a gold party please stop by our store one of us will sort all you items for you, and give you a fair price written to take with you to the gold party.
I was reading some of the things people are saying, and just had to tell every one about what happened to me in this store. I couple of months ago I took my jewelry to sell it at n.j. Diamonds after going to four gold parties, but for some reason I just could not sell my gold to them, and I was right not to do so if I would have sold at the gold party I would have lost over 1,000.00 dollars. That is not the best part I sold got my money, and left the store, by the time I got home I had a call from the store so I called back. The lady there told me that it had come to her attention that she had taken a 21kt gold bangle as 18kt by mistake, and that they owed me 140.00. She explained to me that she had put it in the 21kt pile of gold but by mistake placed it in the pile of 18kt, so you see Unhappy reader honest mistakes happen, and this store is very honest they did not have to call me back not only did they call me back they said that if I did not have time to come, and get the money because I have little kids at home that they would bring the money to me. I would never ever go to another jewelry store to do business.
Thank you Happy Reader again so sorry for the mistake I am glad you wrote here about your experience in our store, and I am so happy that things worked out for you things do get better with time.
I have to say that my entire family has been loyal family has been loyal customers of NJ Diamonds in Dearborn specifically for their integrity and the pleasant manner in which they conduct business. Our family had been in the industry for 50+ years up until 10 year ago, so when we found such a reputable and honest jeweler and organization as NJ Diamonds we pledged our loyalty to them. They are fair in their business dealing and I recommed them to all who ask.
Thank you so much Diana people like you, and your family are what make it a joy to come to work every day.