Anyone Ever Been to a Gold Party?

So I saw this piece on "gold parties" on TV the other night (can't find it, but here's a similar piece.) Basically you bring your gold jewelry to a "host's" home and there's someone there testing it and offering cash for it. As they say in the piece, "It's your grandma's new-age Tupperware party." Here's a better explanation (and a few more details):

Gold parties are when friends and neighbors visit someone’s home and sell gold to a dealer who is hosting the event. The homeowner normally gets a commission on any sales to the dealer and their guests get paid based on the weight and quality of their gold.

And here's a warning:

Better Business Bureau advises consumers that while gold parties may be a fun and convenient way to make some cash, they may not provide you the best deal. BBB recommends consumers do their homework before selling their jewelry at gold parties.

The BBB also recommends keeping the following tips in mind when attending a gold selling party:

• Is the dealer operating legally?
• Understand the scales.
• Know your Karats.
• Call a local jewelry store or check with an online source to verify the current market price for gold before you sell.
• To ensure you are getting the best price for your jewelry, have it appraised before selling.

Finally, the BBB warns of the following gold party scams:

• Cheating on the weight.
• Disputing karats.
• Combining karats.
• Undervalued Offers.

Ok, so now that we're all on the same page with a basic understanding of gold parties, has anyone ever been to one? If so, what was it like? I've never been (neither has my wife) and I don't know anyone that has (or any friends that have had one), so if you're more informed, please enlighten me. What are the pros and cons of these? Is it kind of like a high-end flea market with friends and drinks?

Comments

[ObliviousInvestor]

Whoa, what a crazy idea! I've never even heard of those before.

Also, couldn't that be somewhat socially awkward (morseso than a tupperware party even)? Or are all the transactions done in private?

[Loyd Ford]

You must always be careful with Gold. People think if "the great end" of the financial system comes gold will save them.

The smartest people diversify what they invest in so that they have a wide net and opportunity to overcome obsticles. You should do this, too.

Everything in moderation.

And always seek and research where to invest your money. Ask tough questions.

Good luck.

Loyd Ford

[rdub98]

I think these are a scam. You will never get what you want for your gold. You would be better served selling it on Craig's List. The same goes for coins. I have never done this and will never do it. I would say "caveat emptor", but you are the seller, not the buyer. Still, the principle is the same: beware.

[Jeff]

I have been to one of these parties. I live in a community in FLA ($200k-$450k homes, near a golf course). A couple down the street invited us to a 'jewelry party' where they said bring anything (gold) and exchange it for cash. My wife went early, and when I got there, the 'jewelry' people (a man and a woman) pounced on me when I got in the door, making me feel awkward. They set up a display of different jewelry, mostly gold, and took orders for jewelry. They certainly made themselves look legit. Later, I found that the couple (the hosts) did get a commission, but they didn't feel bad or awkward about it because they told everyone it was a jewelry party. I didn't order anything, nor did my wife, but a bunch of people did exchange gold for cash on the spot. I'm not sure what kind of deals they got or if they were scammed; I was more interested in getting another glass of house wine poured for me.

[cynner]

I haven't been to a party but I did recently round up some old broken gold bracelets, earrings, etc. and sent it to an online dealer. It was a small amount of stuff that I wasn't too worried about losing. It was fast and easy. I got the name from the WSJ MarketWatch newsletter.

I sent it last Friday. Monday receipt was confirmed. Tuesday I accepted their offer (which I could have declined) and I'm waiting for the check and the unused items. I could have opted for an immediate wire transfer for a fee or used Paypal for a fee.

[S33]

Never heard of it before, is it legal?

[Big Cheese]

I'd go to one of these and scam the scammers. Hint... some lead fishing weights reshaped and coated with gold foil / quality gold paint should do the trick.

Sounds fishy... look around. If you can't find the fool in the room then it's probably you!!! Yikes.

-Mike H.

[thomas]

I seriously doubt you fooled someone with fishing weights. then again, I'm not expecting this to be conducted by Mensa members.

A friend of mine hosted one of these parties, and they are nothing special. You get a very small percentage of the value for your gold. If you have a bunch of really nasty tacky gold jewelry that no one in their right mind would buy, then this is the party for you. Enjoy the five dollar footlong with your riches.

[AustinGirl]

It is a "do your homework deal". I own one of these home gold party companies and we are licensed and completely legit.
We did a lot of research before opening this business and made sure that our payouts would beat any local jewelry store and pawn shop. Just "seller" beware in this case. All weighing should be done in front of the customer. It should be done in grams and NOT pennyweight and the purchase price is calculated on the "spot" price of gold that day (or the last trading day if it is the weekend)
It can be a real blessing to someone to have a safe outlet to sell their scrap and unworn gold.

[Sell Gold]

People who would sell jewelry in this manner are very naive and ignorant...the people who buy in this manner are sleeze to the highest degree. Thirty minutes research on how to value a piece of jewely on Google will enable a person to sell the items on ebay at a fair recompense. Never juice the the sleeze. Weigh the item, determine the percentage of precious metal, check the price of the moment and sell at a slight discount....it works.

[Brad]

Others are naive and ignorant to think anyone on Ebay would pay you for your scrap jewelry. If someone has a bunch of broken chains, old ugly gramma jewelry that nobody will ever wear and they don't want to sit in front of a computer itemizing each piece and answering email questions all day, then why not sell it to someone who will buy it for cash right then and there? Some people are not happy with the fact that others make a profit off of them. Welcome to America, land of capitalism. Don't like others making money, find a Communist country and move there.

[Me]

My wife and myself have been to one of these party's held by the owner's wife of our company. It was very legitimate as the "Gold Hosts" offered my wife twice as much as a local jewlery store in town had. I think like anything you have to be aware of the legitimacy of who is doing the party. Unfortunately there are people out there that will find a way to scam and ruin just about anything anymore.

[Goldie]

My mom went to a gold party yesterday and took a bunch of old broken chains and things she would never wear again. I also gave her a few things and my boyfriend gave her a ring. I got $190 for my stuff, my boyfriend got $50 and my mom got about $650 for her things. I think I might have been able to get a better deal, but my mom and boyfriend were very happy. Regardless, I think the $190 for stuff I would never wear again is great!

[hbb]

A good, legit home party company will weigh your gold right in front of you, seperate it by karat and price it based on the price of gold for that day. Yes, the company is making money ~ that is the nature of any business... but there is never any pressure to sell your gold if you don't like the quote. Take the quote and then go to a jewler, pawn shop or even cash4gold and take the best price. It's a no pressure, fun way to sell any UNWANTED gold. If it's a heirloom piece from generations past, I'd pursue a different avenue to sell if that's what you want to do. But scrap gold, stuff you're never going to wear again, it's great! If your skeptical, do your homework and don't bash a legit company.