Remember those Tupperware parties of the 80s and 90s? While they were fashionable back in the day, they’re just not the way people buy or sell things anymore. And while you probably still have some old containers from way back in one of your kitchen cupboards, we’re sure you haven’t had a visit from the Tupperware lady any time in the recent past. Gold parties work on a similar principle as Tupperware parties; a host organises a social gathering where people sell their unwanted gold over snacks, a few drinks and a chitchat.
These parties have been seeing a boom in popularity since the global recession hit, as more people try to sell their unused gold jewelry to supplement their income.
But, like those plastic tubs parties from many years ago, gold parties are just not up to speed with modern times. And if you’re invited to one, think about the time, resources and potential financial loss you could incur. Here’s a closer look.
Attending a gold party might not be legal in your state
While you could potentially run into some great opportunities at a gold party, the risks tend to outweigh the benefits. For a start, they aren’t actually legal in some cities and states (such as Virginia, South Carolina, San Diego and others). Also, in certain other areas, hosting gold parties require permits that come with piles of paperwork and bureaucracy to navigate.
So whether you’re thinking of hosting or attending a gold party, be sure that you’re not contravening any local or state acts and get yourself into unnecessary trouble in the process.
Scams are an unfortunately reality
All too often, buyers at gold parties scam or rip off sellers. The prices they offer are usually well below the market rate, and you’ll get 70-80% of the actual value of your gold if you’re lucky. Unwitting sellers have been known to get as low as 50% of the true value of their valuables at gold party hostings while buyers take home hefty commissions. So do your research and ascertain the current value of your gold before you even think about attending a gold party.
Be careful when selling your valuable gold items at gold parties. You may be parting with a very valuable piece of jewelry at a very unreasonable price.
Unscrupulous gold buyers might even try and trick people on the weight of their gold by using outdated measurements like “pennyweights” (written as dwt), where they pay you for 1g every 1.555 grams. That can potentially add up to a big loss.
It’s just not as convenient, nor as profitable as other options out there
While gold parties had their place in times past, they often incur a significant amount of time, effort and resources to either host or attend – with no guarantee that it will be worth your while. It requires travelling to a hosted party that’s hopefully close-by, dealing with virtual strangers and the possibility that you could undersell yourself – let alone scrupulous buyers or sellers.
If you do decide to go to a gold party, keep your wits about you and don’t feel pressured into a hasty sale. Rather use it as a learning opportunity instead of a chance to offload your goods without getting the worth of your valuable gold. While the prospect of immediate cash in hand may be tempting, you can receive fast payments for your gold in far more secure, fair trades.
It pays to sell your gold online
Reputable companies will offer you a competitive rate (without hidden fees) and payment within as little as 24 hours of receipt of the gold. They’ll also be transparent about the entire process. Ross & Simons is one such company.
We’ve been a trusted household name in jewelry since 1952, and created a Gold Exchange to meet the needs of customers who were looking for safe, simple ways to turn their unwanted gold into cash.You round up the gold items you are wanting to sell, ship them to us securely, receive a video of us weighing the items, and then cash your check. Sign up for a Free Shipping Kit today.