Gold parties: practical or impractical?

Because of the popularity of gold selling and buying, industrious individuals have devised gold parties. This event is actually a literal party; or, at least, a get-together that gathers interested gold sellers and a gold buyer. Most of the time, it is a gold seller that organizes a gold party; he or she merely invites a buyer or a dealer. The gold buyer brings gold-testing equipment to assess the gold content of the items brought by the attendees. Once the item has been tested, the buyer will offer to buy it on the spot. This is a face to face negotiation (and later on you’d know why this distinction is important) so the seller can haggle. The purchase is made after both parties agree on the price. The payment is also made on the spot.

In any case, on paper, gold parties do seem practical. After all, as a gold seller, all you have to do is attend the party. Again, this is another quick money route, which is good if you’re in need of money for home loan or car loan payments. If you organize the event, you can even get a commission from the sales made (the actual commission, which is usually five to ten percent of the total sales made by the buyer). And yet this route isn’t as convenient as it looks.

For one, the sale is made on the spot, which basically means you have idea if you’re getting a fair deal. A number of reports on gold parties in America said gold party dealers usually give underwrite the value of the gold items presented to them (probably in order to make a good cut from the sale). This is dangerous if you have no idea how much your gold is actually worth.

Still, even if you do know your gold’s value, the atmosphere of a gold party might force you to commit to the sale. Gold parties can be quite a high-pressure environment, believe it or not; make sure you won’t be pressured to sell your item when you think your item is worth so much more.

Another seemingly practical gold selling method: postal sales. The process is quite simple, actually—just send your gold to the company through mail and wait for them to give you a quote (usually over the phone). If you agree with the price, they send you the cheque immediately. This isn’t quite as fast as gold party sales or pawnbroker loans (so this isn’t a good option if you’re looking for extra money to pay off your credit line debt or your car loan payments), but it’s considerably convenient nonetheless.

But the non-direct approach puts you in the losing side of the bargain. For one, it almost makes it impossible to bargain. How could you, when the quote is final? Of course, you can say no to the sale, in which case the company will send you back your gold. But many sellers do find this troublesome, so they end up selling their gold anyway.

This isn’t to say gold parties and postal sales are always unreliable. They can be, in the same way high street buyers aren’t always trustworthy. But these two selling options actually put you in a very tight position—a position wherein you’ll be forced to commit to the sale even if the price does not reflect your gold’s actual value.

With this in mind, the decision remains to be yours. Do you value convenience or would you rather wait and work a bit harder to find a buyer that will give you a reasonable price for your gold?  

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