I wrote the following in response to a long term customer who is a large volume gold party hostess in Atlantic Canada. Some Toronto area gold buyer contacted her offering very high rates for her gold. Rates that seemed to good to be true.
You have to be very careful when gold buyers phone you with pie-in-the-sky numbers for their pay out rates.
If their rates seem to good to be true, then they probably are false. If they claim to pay that much, then they are going to charge you fees.
Gold Experts, for example, advertises rates that are 105% of market price. This is impossible. It is false and misleading. No business can buy gold at 5% more than its worth. It's a marketing gimmick that tricks people.
Gold buyers from Florida call all the time and offer unbelievable rates, rates that cannot be possible, rates that are lies.
There are two Toronto gold buyers that I know of that claim super high rates and zero fees. Then their customers come back to me and say, "Yup, they charged me fees that they didn't tell me about". $125 here and $125 there, $75 assessment fee, $50 handling fee... it all adds up. They are all marketing gimmicks. They work though, and combined with their huge advertising budget, they get a lot of business.
KMG Gold Recycling does not have marketing gimmicks. We are completely 100% transparent in every transaction. No surprises, no hidden fees. We find out this Thursday is we are winners of a Better Business Bureau Torch award. We were chosen as a finalist for the award last week. This award is for being open, honest, transparent, telling the truth, and demonstrating integrity and ethics in the marketplace.
KMG cannot speculate on the purity of scrap gold and charge no fees in addition to paying out 90% of market price.
As you know, KMG pays out more for items with a published purity. Maple Leaf coins, Canadian and US silver coins, gold and silver bars etc.
The speculation on purity is removed on these items.
Scrap jewellery, once melted, is typically 5-7% lower in purity than the hallmarks indicate.
We have two methods of recycling precious metals. Cash Lots, and Refining Lots.
You guys have been selling as "Cash Lots". We buy the metal, no fees. Immediate payments. We do the speculation on the purity and on market fluctuations. We pay out 90% to our dealers.
Refining lots may be better suited to you guys. It all depends on your cash flow situation. Refining lots pay out 98% of market value for gold and 95% on silver.
The whole process takes about 7-10 days. All of your gold is melted in one pot - NO sorting. We melt it all. Assay samples are sent out for independent analysis. Then, when the assay results come back, you can sell your metal on the market, or leave any or all of it in your pool account for sale at any time.
Refining lot fee schedule has been attached.
Our refining lot pay out rates are the Canadian standard rate. All of the "real" Canadian refineries pay out 98%. If anyone claims to pay more, they are using x-ray fluorescence technology and skimming 2% off the purity values.
Refining lots - YOU do the speculation on the purity and the market prices and YOU pay the refining costs. That's why you get 98% instead of 90%.
Refining lots will ALWAYS make you more money than a cash lot for lots above ~200 grams. You guys are way above that volume of gold.
So, if you want more money, and have a week to 10 days to get the assay results, refining your gold will make you more money than selling it as a "Cash Lot".
Michael Gupton, President, KMG Gold Recycling
For more information on refining your precious metal instead of selling it, for 98% of market price, visit: