Gold purchase
Buying gold is the purchase of gold ( bars or coins ) and objects containing gold ( gold jewelery , old gold , dental gold , broken gold , gold scraps , etc.). The purchase value is based exclusively on the fine gold content . Many gold buyers also buy other precious metals ( platinum , silver , palladium , etc.) and watches.
Process of buying gold
The seller brings or sends gold-containing objects for gold purchase. The employees of the gold purchase analyze the fine gold content and determine a purchase value. Serious and experienced dealers also take into account resale gemstones or a possible historical value when determining the price and carry out all test steps in front of the customer. If the seller agrees, the money will be paid out. The gold buyer usually sells the gold-containing objects to precious metal refiners . There, fine gold and the other components are separated. The fine gold can be reused in industry and craft.
Determination of the fine gold content
Only the fine gold content (= carat) is important for determining the value of an object containing gold. Upon receipt, the gold buyer analyzes the authenticity and fine gold content.
- Authenticity determination and analysis by visual inspection ( fineness stamp ) X-ray fluorescence analysis or sample
- Calculation of the presumed fine gold content (the actual amount of fine gold is only available after the precious metal separation .)
Determination of the fineness by means of a sample
Here, the dealer checks the piece of jewelry by first applying abrasion of the piece of jewelry to a test stone, which he then tests for the fineness using acids. A positive result is expressed in that the abrasion under the acid does not change or only changes slightly. Dissolution of the abrasion means a lower fineness or that the piece is made of a base metal. With this method, the test accuracy is limited to the fineness 333 ‰ / 585 ‰ / 750 ‰ and 900 ‰. However, precise work is required. Inaccuracies in the inspection process result in faulty results, especially for pieces of jewelery below 585 and over 750. Test acids must be changed at regular intervals, because outdated, "fumigated" acids can lead to negative results for the customer. The sample causes a surface damage and is therefore not a non-destructive method. Any type of investment gold, such as coins or bars, should be able to be tested non-destructively by an expert, since the scratches that occur can no longer be sold on coins or bars and are therefore bought back at low prices.
Determination of the fineness using X-ray fluorescence analysis (XRF)
The advantage of X-ray fluorescence analysis (XRF) compared to visual inspection and spot checks is that the fine gold content of objects containing gold can be checked non-destructively.
However, the detection of counterfeit precious metals is limited to a very thin upper layer. For example, coins from mints with a high manufacturing standard are displayed with a higher fineness than they actually have and are indicated by the mints.
(Example: Austrian 10 Schilling silver coin, fineness 640, is measured with a fineness of over 900.) The reason for this is a process of thermal-chemical surface treatment (sulfidization) to curb surface oxidation on the coins.
Disadvantages of the RFA are:
- The depth of penetration of the X-rays into the material to be tested depends on the density, and is very low for precious metals.
- In the case of surface layers (e.g. gold plating) with a high layer thickness, an incorrect measurement result can only be recognized with a lot of experience
- In the case of gold, the measurement inaccuracy is +/- 0.5–1.5% under the best conditions (comparison: with docimasy or fire test only 0.05–0.1% deviation).
- High acquisition costs.
Advantages of the XRF:
- Quick, economic result.
- Result encompasses more than one metal.
- Mobile application possible.
Non-destructive determination of the fineness and authentication of coins and bars
Unlike jewelry, coins and bars are traded at very low mark-ups, the so-called "premium" for minting and molding costs, very close to the pure precious metal price. In contrast to jewelry, these precious metal products, provided they are undamaged (bankable), are not melted but resold. For this reason, these products also have a higher selling price than old gold. Here, however, it is important to check the authenticity of the pieces in a non-destructive and non-injurious manner. The following methods have proven themselves in recent years:
- Density measurement (Archimedes principle): based on the different volume compared to the weight
- Magnetic balance: based on the magnetism of metals or alloys. A magnetic balance has a very high test magnetic field strength and thus a high penetration and detection capability with regard to paramagnetic or ferromagnetic inclusions in precious metals. Fine gold and fine silver are inherently diamagnetic; H. they are forced out of a magnetic field. Typical paramagnetic counterfeit materials such as tungsten, molybdenum, tantalum, hafnium, iridium, rhenium, on the other hand, are drawn into a magnetic field and thus immediately recognized as counterfeit material. The newer counterfeit coins made of tungsten-copper or tungsten-silver are also detected immediately using the magnetic scales.
- Ultrasonic measurement: Similar to medical ultrasound, a sound wave passes through the test piece. The sound propagation time is measured and conclusions about the alloy are made. This means that the speed of sound and the density of commercial bars and coins made of gold, silver, platinum, palladium, rhodium and other platinum / precious metals or their alloys can be determined. Inhomogeneities in the material, such as cast-in tungsten rods, can be easily detected.
- Conductivity measurement: Using a probe and a source / measuring device, the conductivity is measured using an induced eddy current. The measurement takes place within a few seconds and also works through plastic packaging. This is particularly useful with the modern bars because most manufacturers pack the bars from 1 g to 100 g in blister packs that have been provided with security features. An opening would represent a loss of value. In recent years, counterfeit bars from renowned manufacturers in perfectly counterfeit security packaging have been put into circulation from China.
Weight determination
Weight determination with calibrated precision scales
The second factor that determines the price is the weight of the pieces. The weight is determined by every reputable dealer using calibrated precision scales in front of the customer and the customer can convince himself of the weighing result on the scale display or on the second display, which is also calibrated. It must be weighed with a valid, calibrated scale - small pocket scales are insufficient for commercial trade and are not permitted by law.
Deductions from the weight
Only the weight of the gold alloy is used to calculate the purchase price. Valuable foreign metals such as springs from clasps, dirt or production residues from hollow jewelry are removed in the form of so-called melt loss. This also applies to stones of no value if they are not removed from the piece of jewelry by the dealer. These melting losses represent technically unavoidable weight losses of up to 15% that occur when melting any alloy, since the foreign components burn, evaporate or pass into the slag (combustion residue) .
Calculation of the value and pricing of precious metals
Factors for value
The value of the old gold is subject to the following factors:
- Fineness of the piece ( carat )
- Weight of the piece minus base parts (stones, foreign metals, dirt)
- Exchange price of precious metals
- Dealer's discount on the exchange price (trading range)
The smelting price refers to the exchange price of the old gold minus the smelting costs, the logistics costs for delivery to the refinery and the dealer's margin.
Fineness
The fineness indicates the amount of precious metal in the alloy in parts of a thousand (per mille ‰). For example, 1000 g of an 18-carat alloy contains 750 g of fine gold, which is 75% or 750 ‰.
Common fineness / common fineness for jewelry are:
- 916 gold (22 carat )
- Gold 750 (18 carat )
- Gold 585 (14 carat ) (correct would be 583.5, but generally hallmarked is 585)
- 375 gold (9 carat )
- Gold 333 (8 carat )
A dealer calculates the value of the respective carat number as follows: Gold price in grams x (fineness / 1000) - trading margin
Converting broken gold into fine gold still requires a complex processing process, the precious metal separation . Discounts for further processing and recycling of 15–20% on the stock exchange price are thoroughly justified and serious.
Factors for the value calculation
The price development of the prices for old gold is completely different from that of the stock exchange price. While the stock exchange price is largely unaffected by the individual traders from supply and demand, the prices for scrap gold are determined by gold buyers on the basis of their own motivations and interests of price policy. There are no prescribed prices for old gold or coins, only market prices. Orientation aids are available on the internet on the homepages of the large refineries (refineries) or larger gold dealers, but these are not binding for any buyer. The amount of the purchase price is incumbent on the gold buyer. Banks and precious metal dealers also set prices for bars or coins without legal requirements. Gold buyers on the Internet often publish very high purchase prices, which, however, read the general terms and conditions, are not binding or guaranteed. The same applies here: Everything far from the norm is possibly an indication of dubiousness. Especially traveling gold buyers who advertise with direct mail, sometimes with a discount of more than 80% on the stock exchange price, pay well below their value and have been judged particularly negatively by consumer advocates and the media.
In Austria, to protect the customer, a lower, legally prescribed minimum value applies, which must be more than half the market value (“shortening over half” = Laesio enormis ). This minimum value does not exist in Germany.
Processing at refineries is safer by picking up valuables or delivering in person. Ultimately, all of the old gold ends up being melted down and recycled at a refinery. Some refineries also offer the purchase of precious metals for private households, which can thus avoid the risk and the often not insignificant value reductions of the gold purchase shops. The disadvantage of selling at refineries is that, in contrast to jewelers or pawn shops, resalable jewelery or valuable stones are neither recognized nor remunerated.
Opportunities to sell gold
Local gold buyers, jewelers or refiners
You can sell gold at countless gold dealers, jewelers and goldsmiths or directly at refineries, if they offer private purchase. The pricing can vary from place to place, it is not possible to make general statements only after assignment of the buyer. Sometimes you can get a lot more than just the gold value from a jeweler or goldsmith for a beautiful piece or an antique dealer for an old piece.
Pawn shops or auction houses
If you don't want to give up a piece forever, you can lend it to a pawn shop for a fraction of the gold value. However, this does not pay off for coins without numismatic value or broken gold or jewelry that you do not want to redeem. For beautiful pieces, however, you can get more than the gold value in pawn shops when they sell.
In auction houses you have the option of selling special items directly to other consumers. Here the valuer determines the starting price; But what price is then sold is the risk of the seller. Auction fees are then deducted from the purchase price.
Gold purchase by post
In addition to local purchases, many gold buyers also offer the option of selling gold and items containing gold by post. To do this, the gold is placed in a neutral envelope or a special package that can be ordered free of charge with the respective gold purchase. Neutral destination addresses are usually given in order to avoid any reference to the valuable content of the letter. In addition, the seller should not use terms such as "gold", "gold purchase", "object of value", "precious metal" or the like. A legally stipulated "Precious Metal Cover Letter" must be enclosed with the letter. This is usually made available for download as a PDF document on the website. As a rule, these providers offer the customer the option of calculating an estimated purchase price on their website in advance. In recent years, however, this form of gold buying has repeatedly attracted negative attention due to the very low purchase prices in independent tests of various print media as well as TV reports, but also consumer protection organizations.
Criticism of buying gold by post
Most gold sales outlets that offer gold purchase by post point out that shipping items containing gold is completely safe if the seller contacts the above. Rules. But even if these rules are adhered to, that is by no means a guarantee for serious offers and good service. Under the heading It is not all gold that glitters , the Berlin daily Berliner Kurier issued an urgent warning at the end of April 2010 against sending precious metals by post. During tests, gold-containing objects were first valued by a Berlin head master of the goldsmith's guild. Then these gold-containing objects were sent to the respective gold buyer. Although all providers of gold purchases by post promise that the money will be transferred very quickly, the offers were a long time coming, which were then significantly below the estimates of the goldsmiths' guild. When the tester objected to the sale of gold, it took several weeks for the gold-containing items on offer to be returned. A representative of the Berlin consumer center also pointed out that the burden of proof of the gold mailing in the event of a loss of the shipment lies with the sender. In the general terms and conditions (GTC) of the companies that buy gold by post, it is accordingly pointed out that the delivery is at the cost and risk of the customer.
Precious metal cover letter
The cover letter for precious metals is a letter required by law that must contain the following information:
- Company and name of the sender
- Sender's address
- Sender's phone number, email address, and fax number
- information on this broadcast
- Bank details
- Affidavit and certificate of ownership
- Handwritten signature, date and location
Laws and regulations for buying gold in Germany
The purchase of gold in Germany is regulated by numerous laws, ordinances and provisions. These apply to the opening and operation of a gold sales point. According Industrial Code Goldankauf is not subject to approval, but a monitoring needy Commercial . In Austria the purchase of gold is legally permitted for anyone with a trade. Since the trade is a so-called free trade, no qualification certificate is required for the trader.
No trade requiring a permit
Anyone wishing to purchase precious metals and alloys containing precious metals, as well as goods made from precious metals or alloys , must register this trade with the competent authority . However, buying gold is not a trade that requires a license. This means that the trader only indicates to the authority that he is or would like to operate this business. However, buying gold is a trade that requires supervision.
Trade requiring supervision - § 38 GewO
The purchase and sale of precious metals, precious metal-containing alloys and goods made of precious metal or precious metal-containing alloys are among the trades that require supervision. This means that the competent authority must check the reliability of the trader after receiving the business registration or the business re-registration . To do this, the trader must apply for and present a certificate of good conduct and information from the central trade register .
Prohibited acquisition of precious metals - § 147a GewO
Among other things, it is forbidden to commercially acquire precious metals, precious metal-containing alloys and goods made of precious metal or precious metal-containing alloys from minors . Anyone who does this willfully or negligently can be punished for this administrative offense with a fine of up to 5,000 euros.
Negligent stealing of precious metals - § 148b GewO
Anyone who negligently trades in stolen precious metals, precious metal-containing alloys or goods made of precious metal, melts them, tries them or divorces them can be punished with a prison sentence of up to one year or a fine.
Prohibition of buying gold in the travel trade - § 56 GewO
The purchase (and sale) of precious metals, alloys containing precious metals and goods with precious metal coatings is prohibited in the travel trade. Only the sale of silver jewelry and goods with silver plating is allowed up to a retail price of 40 euros.
Purchase contract
In order not to come into conflict with § 147a and § 148b of the trade regulations, most gold buyers conclude a sales contract with the seller. The following key data are contractually agreed in this contract:
- Name and full address of the buyer and seller
- Exact description of the items sold
- Purchase price
- Affidavit and certificate of ownership: In this insurance, the seller declares in lieu of oath that the material offered for purchase is unrestricted property , does not come from a criminal act and is neither pledged nor assigned. In addition, the provider declares his legal age and full legal capacity
Identification required
According to § 147a GewO, it is forbidden to commercially acquire precious metals (gold, silver, platinum and platinum), precious metal-containing alloys and goods made of precious metal or precious metal-containing alloys or precious stones from minors. This results in an identification requirement that is implemented in almost all federal states. Here z. In Bavaria, for example, the value of the precious metals purchased plays a role, although § 147a GewO does not provide for any exceptions or value limits.
Current developments
The economic crisis and rapidly rising gold prices have caused a boom in gold buying since 2011. Jewelers and pawn shops are also reporting a surge in sales. Many people part with gold jewelry, dental gold, etc. in order to benefit from the high gold prices. At the same time, there is an increase in advertising for gold buying companies. It is noticeable that the industry has recently been doing a lot of television advertising . Parallel to this boom, consumer protection associations , professional associations, the media and gold buyers are warning of black sheep when buying gold. The main allegation here is that they pay too little money for the gold and that the gold content is incorrectly determined due to a lack of training or with intent. The tests also show that there is a direct correlation between high advertising spending and low purchase prices (a lot of advertising - low price) - a logical conclusion that must inevitably result from the very low trading margins customary in the industry for precious metals. According to the World Gold Council, the amount of gold that is returned to the market through recycling has now fallen by around 30% worldwide, and in some cases by 60% nationally. This was accompanied by a shrinking of the industry. The reasons are assumed to be the lower gold price and the above-average sales of previous years.
Web links
- Gold is more expensive than ever. In: Badische Zeitung. October 8, 2009.
- Rush to jewelers. In: The world. March 23, 2008.
Individual evidence
- ↑ Selling Damaged Gold & Silver: What is the melting price? In: Kettner precious metals.