[Jewelry making - Article 00551] - Re: [Orchid] Converting gold to cash

[David Phelps]

========[ Invite a Friend - http://www.ganoksin.com/invite.htm  ]========

Hi Larry,

    Gold coins would probably be your best bet if your objective is to
    play the market and you want to hold the actual metal in your hands.
    Getting 24k grain back is a great option if you can use it to make
    jewelry, but not so great if you want to hold it and be able to cash
    it out quickly. When sending 24k grain in to a refiner for a cash
    settlement, they have to handle it just like it's karated scrap. They
    aren't going to pay you until they have assayed it and know exactly
    what they're buying. You might be able to sell 24k grain to a
    manufacturing jeweler or trade shop, but they will want a
    significantly better price than market. If they don't know you, they
    will likely be suspicious and will only buy it far below market value
    (if at all). Coins on the other hand are always convertible, costing
    slightly above market, but selling for somewhat less than market. In
    any event, you will still have to find a willing buyer, and at a
    perceived market peak, that may be difficult. Also, the more times
    your gold changes hands and/or form, the more it's going to cost you. 


    Another (and possibly better) way to play the market if you are
    betting that gold hasn't peaked yet is to refine your scrap for a
    cash settlement and purchase shares in a gold stock (check out the
    Dillon Gage and Kitco websites for ideas). If you have a brokerage
    account you can sell it in seconds, although it will still cost you
    the transaction fees and you'll have to wait a week or so for a
    settlement check. 

    As a rule of thumb, the faster you want or need to sell gold (or
    anything else for that matter), the less you're going get for it.
    Just like everything else in life, there's no free lunch. 

Dave
____________________________________________________________________
T h e   O r c h i d   L i s t
Open Electronic Forum for Jewelry Manufacturing Methods and Procedures
____________________________________________________________________
Orchid FAQ:
~ http://www.ganoksin.com/orchid/faq.htm
Orchid Archives:
~ http://www.ganoksin.com/orchid/archive
Orchid Galleries:
~ http://www.ganoksin.com/orchid/gallery.htm
Invite a Friend:
~ http://www.ganoksin.com/invite.htm
____________________________________________________________________
Tips From The Jeweler's Bench - Article Archive
~ http://www.ganoksin.com/borisat/tip_sear.htm
The Jeweler's Selected Bibliography List
~ http://www.ganoksin.com/jewelry-books
Buy Orchid Jewelry:
~ http://www.ganoksin.com/shop
____________________________________________________________________
-Unsubscribe:
-Email: orchid-request AT ganoksin.com Body=unsubscribe subject=blank
____________________________________________________________________