Gold Price Validity Checker
Seen a better gold price than ours?. That takes some doing as we pay around 97% of the gold fix and sell at around 98%(No business receives more than 99% of the fix.) Reading on will help you to understand what is and isn't a genuine gold price out there
In a competitive market there are companies around who artificially inflate their offers to get an edge. In the UK Gold and Silver Buying Industries, which are unregulated at the moment, this practice is rife.
A quick trawl on the Internet reveals huge differences in the prices offered for your gold and silver BUT the wise seller can avoid the rip-off merchants by following these simple steps.
STEP 1 - CHECK THE DAILY GOLD PRICE ON THE TRADING MARKETS
The chart below is live and up to date. This is your starting point...
Note the sterling £ price is for pure or 24 carat gold and is per kilo
STEP 2 WORK OUT THE 9 CARAT PRICE AT 100% OF THE LONDON FIX
In order to work out the Market trading price of gold per gram for 9 carat I would first divide the figure we have by 1000 ( a kilo =1000 grams) and then by 24 and finally multiply by 9
Remember the chart above is live.. On the 03/3/12 for example the price was £34,711 per kilo of pure gold
£34,711/1000 = £34.71 A GRAM Now divide by 24 and multiply by 9= £13.01 per gram of 9 carat
Now calculate the Gold price Yourself t today's price Remember you are calculating 100% of the gold price, who could pay that? and make no profit at all?
STEP 3 TAKE-OFF THE BUYERS MARGIN
Typically good, reputable gold-buyers buy gold from the Public at around 96% of the fix Any more than that they would not be in business for long. .
Now calculate the actual price you would be paid by a reputable dealer on the day by taking the price you have just calculated and multiplying it by 0.96 You are receiving 96% from us Along with most UK Gold buyers we sell to the refiner, in bulk at 98% We make 2%
STEP 4 THINK LOGICALLY
If you see a price way above ours then ask yourself how is that company making any money. margins are tight and any company posting a price equal to or within 3% of the fix is probably best avoided. There are refiners who pay the Trade this sort of amount but its bulk trading only.
Look around the Internet, check some of the "too good to be true prices out there and you will see some prices way above this level. Quite simply no business can survive by paying more than this £13.01 based on the kilo price in our example of £34,711
So what about these gold-buying companies that are posting prices above this level?
How do they make money?
Basically they fiddle you. Just remember that you may not be getting the best deal by simply going for the highest advertised price.