Gold is now, on February 2nd, 2014, up over $100.00 USD from when I wrote this in January, so disregard the pricing used (or use current gold price found at kitco.com).
On this cold Thursday morning–January 9th, 2014– gold is trading slightly up at $1226.50. After a tumultuous 2013 for precious metals, 2014 has seen an uptick, one that some people are seeing as a good indication to buy, and many are taking advantage of to sell metal here at Alexandria Gold and Silver.
Starting the year off, I want to reiterate our 90% payout on jewelry and scrap gold. 90% is HUGE in the industry, and we are setting the bar extremely high by offering it. I also want to show the difference that our 90% payout makes when compared with what other establishments are paying.
I am going to use an actual client example from last week–he called around to 5 places before coming by to see us and was very open about how the interactions went. Keep in mind he had already weighed his jewelry:
Two places wouldn’t price his items over the phone, he would have to come in
One place said they don’t price by percentage
Another offered 35%, not by saying “35%” but he figured it out by their price per unit
The best of the five offered him 65%, again he calculated the percent by using their price per unit
Ignoring the 3 offers that didn’t give concrete answers, lets look at the two that did:
My client had 58.3 pennyweight (dwt) of 14k. Using today’s gold price let’s look at what he would have walked away with at the different store compared with what he walked away with here at Alexandria Gold and Silver:
Store #1 at 35% = His payout would have been $700.18.
Store #2 at 65% = his payout would have been $1,301.25.
Our Store at 90% = his payout is $1,801.47.
This example shows the different mentalities of the gold buyers out there as well. Store #1 is happy getting one unknowing customer a week because they are making over $1,100.00 dollars on this transaction. Store #2 probably has high overhead and a substantial inventory (like a jewelry store) and can’t pay higher because of these reasons. Their primary business is not being a metals broker.
Our store is only set up for one thing—buying and selling precious metals. We trade bullion and coins as well, allowing us to pay 90% on jewelry due to the large amount of daily transactions that occur. We chose years ago to work on volume and to keep our margins tight so we can offer the best prices possible while retaining clients for life.
2013 was a great year for us and we foresee 2014 to be even better. Thank you to everyone who has put their trust in us and we look forward to serving Northern Virginia for years to come!
Thanks and Sincerely,