Were you too quick to cash out your precious metals last year?
In today’s world convenience is all important. Convenience means quick and easy. The question is how quick is too quick? Are you sacrificing money because you are being too quick with your finances and selling off gold and precious metals at a loss? For example: in precious metals refining, waiting just a couple of days can mean gaining thousands of dollars.
We encounter refining prospects who like the convenience and quick turnaround from a cash buyer or local refiner. Cash buyers are just around the corner from the store, stop by once a month, or are a short drive away; usually someone a business owner has been using for years out of convenience. Cash buyers and neighborhood refiners usually pay same day.
What are you sacrificing to be paid in a day or same day?
- You are not getting paid on a True Fire Assay. Some say they are. The truth is, if you are getting paid in a day or two days, you are not getting paid on a True Fire Assay. There is no possible way you could be- you are getting paid on a melt. It is your melted product nothing more. This means you are losing at a bare minimum 2% per lot. If you currently use a cash buyer or neighborhood refiner, calculate your lot sizes for the year and figure, conservatively a 2% loss. Is that really worth the convenience of this transaction. Would you wait another 4 days to get 2% + more?
- You always lose. There is no way you can win with percentage-based value. A cash buyer normally gives 93% – 98% but this is based on what they think the lot is worth. Hint: you will never get what your lot is truly worth or they would not be in business.
- The cash buyers generally do not pay on platinum in your lot and many times not even the silver or diamonds. This can add up to thousands over the course of a year.
Still have questions: Check out our case study-Southwest Gold Buyer