Here are the facts: I have an old ring that is 14 kt weighing in at 3.2 dwt. Today's gold price is $1771.70 per ounce, or in terms of pennyweight (dwt) for 14 kt that is $51.67/dwt. Calculating this out the melt price of the ring would be about $165. Ater the buyer verified the weight and purity (with a gram scale and muriatic acid respectively) he asked me to name a price. So as any good negotiator would do I started at the maximum I could get at $165. He then said how about $126 for the ring? I thought that this was fair since one could expect to get 70-80% of the melt price from a pawn broker, plus he mentioned that they have their own smelter which takes away some of their overhead. So I said, yes I will give it to you for that much. He then paused, made a phone call to someone named Danielle and then after some talk about how my price was higher than the platinum price, he came back with a price of $106! I asked him why then did he offer me $126 only to turn around and offer me something totally different. He then said that if I had more weight in gold to offer then he could offer me the higher price. So I asked him if they buy gold based on a tiered approach. He replied, no.
You be the judge. Mine is two out of five. read more