Skippy SH13
Forum Supporter
Why I am posting this:
When I first started metal detecting, I had grand visions of the value of my finds. This was a big "thing" I was constantly looking for. At 2 years and 4 months, while not much more than a newbie myself, I do have a few miles under the belt, and want to help the other folks just coming into the hobby.
Anyhoo... many of you can relate to the following:
When you find your first GOLD or SILVER , you'll immediately have GRAND VISIONS of being rich! Unfortunately, you'll quickly discover that the "retail value" of something is not the same as the "actual value."
I'd like to start by pointing out that much of this is due to supply/demand, rather than the actual intrinsic value of the metal.
To understand how much your finds are worth, let's start with intrinsic value.
As a real-life example, a typical Sterling silver ring costs about $35. A gold ring of the exact same proportions and style will cost $500 retail.
In fact, the EXACT same mold can be used! Both rings likely use the same "lost wax" method of creation It's quite literally the metal type poured into the mold that is the primary difference in price. The metal type changes the value of the ring, not the "effort" that goes into the ring.
If both rings take the same amount of work to make... let's say the silver ring weighs in at 3 grams, and the gold at 4 (Gold is more dense). Is gold really that much more expensive, that it accounts for a $465 difference in price? ($35 vs. $500 retail). Let's find out! Let's look at the actual value of such a ring of each type, and then we'll stop to note the markup differences...
If you go to this website, and select the drop down menu for Silver by Weight, then Sterling Silver calculator (as shown), you'll find the current spot price of a gram of silver (more on that in a minute)
Coin & Bullion Melt Value Calculators
The same thing done for 14 Karat gold: Gold by Weight, then 14K Gold Calculator, you'll find the current spot price per gram of 14K gold.
Today (April 24, 2017) shows that
- 3 grams of silver has a value of $1.60. Yes. One Dollar and twenty-seven cents. For that silver ring!
- 4 grams of 14K gold has a value of $95.59. Yes, eighty dollars and thirty-four cents.
But stop and think for a moment:
That EXACT same plain band ring cost $1.60 in material for silver, and $90.59 cents in gold. That means the ring is marked up by $33.40 for silver, and a whopping $409.41 for the gold ring!! If the same amount of EFFORT went into making each ring... then the cost of the ring should only be "over" the amount of the gold, right? Not according to retail!
While it is unlikely more effort is required, What IS likely, is that they because folks are willing to pay more for gold (perceived value) retailers can get the higher price (Supply/demand!)
SIDE NOTE: Even more goes into that original price than the cost of the gold/gems. People are paying for the artistry, the "demand" markup, and potentially the exclusivity of design. It's also fair to note that people often spend a lot of money so they can say they spent a lot of money. And before folks comment that this IS silly, remember that it isn't to the people who are doing it. In fact, personally, I think this is a valid point. Just as flowers are essentially "worthless," the value to the recipient is that THEY were worth what was spent on the flowers and the idea that they flowers made them happy. That makes them valuable to both the sender and the recipient. The same goes for jewelry. Some folks feel VERY valuable because a loved one spent a lot of money on them. I'm NOT knocking that. In fact, I think it's a beautiful thing that two people can share such a thing between them. And it IS Between them. Different strokes for different folks.) Besides, I really love finding the things those people lose. LOL
Back to the rings... Is a $500 14K gold ring worth that much new? It was to the buyer, which means YES. Is it worth that much when you find it metal detecting. Most definitely NOT. Why? Because of a few things:
1) It's no longer "new." People value "new" higher than “used.”
2) It often has some damage from normal wear. Scratches, buffs, etc.
3) Demand for 2nd hand jewelry is MUCH less than for new, which keeps the prices low. So low, in fact, that some bargain hunters can find jewelry at less than the metal value.
So... What's your find worth in resale?
Start with the Spot value (which is the daily value of a large amount of metal traded on the exchanges). That's the value of your metal in hand. Now... if you're selling it to some point of exchange (jeweler, pawn broker, metal broker), you're going to take a hit, typically BELOW spot. If you're buying it, you're going to take a hit, often ABOVE Spot. This is how the exchange points make money. Selling that $35 silver ring for scrap? You'll probably get $1.25. Selling the gold one? You might get $80-$85.
If you sell the item as a jewelry piece, you'll find that you should be able to get very close to spot, and often can get a bit more, because of the artistry of the piece...sometimes more. In fact, I can OFTEN get $5-$10 for silver rings, if I can find a buyer (my son sells them at his school to the girls there). Gold rings are harder, but it can be done.
If you have a more rare piece, such as one with a stone in demand (such as larger carat diamonds) or particularly striking styles, you can be in the money quite a bit.
But... as a general rule, if you've got a $500 retail ring with nothing outstanding about it, you can expect metal value, possibly a bit more if you can find a buyer.
Personally, I've found that, with a buyer, gold pieces (because of the higher melt value) seem to go for about 15-20% of retail. Silver goes for about 12-20%.
Again..> EVERY PIECE IS DIFFERENT... EVERY BUYER IS DIFFERENT. You might just find that one buyer who is willing to pay $1000 for a plain band 4 gram 14K gold ring. Just don't count on it!
If you look at a ring, and think to yourself, "This would sell for a good $600 in the store" then it's probably worth $80- $120 in hand. Most of that melt.
Cheers!
Skippy
When I first started metal detecting, I had grand visions of the value of my finds. This was a big "thing" I was constantly looking for. At 2 years and 4 months, while not much more than a newbie myself, I do have a few miles under the belt, and want to help the other folks just coming into the hobby.
Anyhoo... many of you can relate to the following:
When you find your first GOLD or SILVER , you'll immediately have GRAND VISIONS of being rich! Unfortunately, you'll quickly discover that the "retail value" of something is not the same as the "actual value."
I'd like to start by pointing out that much of this is due to supply/demand, rather than the actual intrinsic value of the metal.
To understand how much your finds are worth, let's start with intrinsic value.
As a real-life example, a typical Sterling silver ring costs about $35. A gold ring of the exact same proportions and style will cost $500 retail.
In fact, the EXACT same mold can be used! Both rings likely use the same "lost wax" method of creation It's quite literally the metal type poured into the mold that is the primary difference in price. The metal type changes the value of the ring, not the "effort" that goes into the ring.
If both rings take the same amount of work to make... let's say the silver ring weighs in at 3 grams, and the gold at 4 (Gold is more dense). Is gold really that much more expensive, that it accounts for a $465 difference in price? ($35 vs. $500 retail). Let's find out! Let's look at the actual value of such a ring of each type, and then we'll stop to note the markup differences...
If you go to this website, and select the drop down menu for Silver by Weight, then Sterling Silver calculator (as shown), you'll find the current spot price of a gram of silver (more on that in a minute)
Coin & Bullion Melt Value Calculators
The same thing done for 14 Karat gold: Gold by Weight, then 14K Gold Calculator, you'll find the current spot price per gram of 14K gold.
Today (April 24, 2017) shows that
- 3 grams of silver has a value of $1.60. Yes. One Dollar and twenty-seven cents. For that silver ring!
- 4 grams of 14K gold has a value of $95.59. Yes, eighty dollars and thirty-four cents.
But stop and think for a moment:
That EXACT same plain band ring cost $1.60 in material for silver, and $90.59 cents in gold. That means the ring is marked up by $33.40 for silver, and a whopping $409.41 for the gold ring!! If the same amount of EFFORT went into making each ring... then the cost of the ring should only be "over" the amount of the gold, right? Not according to retail!
While it is unlikely more effort is required, What IS likely, is that they because folks are willing to pay more for gold (perceived value) retailers can get the higher price (Supply/demand!)
SIDE NOTE: Even more goes into that original price than the cost of the gold/gems. People are paying for the artistry, the "demand" markup, and potentially the exclusivity of design. It's also fair to note that people often spend a lot of money so they can say they spent a lot of money. And before folks comment that this IS silly, remember that it isn't to the people who are doing it. In fact, personally, I think this is a valid point. Just as flowers are essentially "worthless," the value to the recipient is that THEY were worth what was spent on the flowers and the idea that they flowers made them happy. That makes them valuable to both the sender and the recipient. The same goes for jewelry. Some folks feel VERY valuable because a loved one spent a lot of money on them. I'm NOT knocking that. In fact, I think it's a beautiful thing that two people can share such a thing between them. And it IS Between them. Different strokes for different folks.) Besides, I really love finding the things those people lose. LOL
Back to the rings... Is a $500 14K gold ring worth that much new? It was to the buyer, which means YES. Is it worth that much when you find it metal detecting. Most definitely NOT. Why? Because of a few things:
1) It's no longer "new." People value "new" higher than “used.”
2) It often has some damage from normal wear. Scratches, buffs, etc.
3) Demand for 2nd hand jewelry is MUCH less than for new, which keeps the prices low. So low, in fact, that some bargain hunters can find jewelry at less than the metal value.
So... What's your find worth in resale?
Start with the Spot value (which is the daily value of a large amount of metal traded on the exchanges). That's the value of your metal in hand. Now... if you're selling it to some point of exchange (jeweler, pawn broker, metal broker), you're going to take a hit, typically BELOW spot. If you're buying it, you're going to take a hit, often ABOVE Spot. This is how the exchange points make money. Selling that $35 silver ring for scrap? You'll probably get $1.25. Selling the gold one? You might get $80-$85.
If you sell the item as a jewelry piece, you'll find that you should be able to get very close to spot, and often can get a bit more, because of the artistry of the piece...sometimes more. In fact, I can OFTEN get $5-$10 for silver rings, if I can find a buyer (my son sells them at his school to the girls there). Gold rings are harder, but it can be done.
If you have a more rare piece, such as one with a stone in demand (such as larger carat diamonds) or particularly striking styles, you can be in the money quite a bit.
But... as a general rule, if you've got a $500 retail ring with nothing outstanding about it, you can expect metal value, possibly a bit more if you can find a buyer.
Personally, I've found that, with a buyer, gold pieces (because of the higher melt value) seem to go for about 15-20% of retail. Silver goes for about 12-20%.
Again..> EVERY PIECE IS DIFFERENT... EVERY BUYER IS DIFFERENT. You might just find that one buyer who is willing to pay $1000 for a plain band 4 gram 14K gold ring. Just don't count on it!
If you look at a ring, and think to yourself, "This would sell for a good $600 in the store" then it's probably worth $80- $120 in hand. Most of that melt.
Cheers!
Skippy
It's all a vicious cycle...
