View Full Version : Anyone else find this odd? (online gold buyers)

26th April 2010, 15:56
While driving home from a weekend trip I heard a commercial on the radio, easy steps on how to get that new TV you want, the vacation you dream of or something else one might desire.

A new service which is named (in norwegian) Gullvekten (The gold scale) is buying old and unused gold from good ol average Joe, everything from jewelry to gold fillings.
They offer relatively good prices per gram of gold, depending on the quality.
www.gullvekten.no (norwegian site, use google translate if you want a closer look)

First thing that popped into my head was, why?
What makes it so lucrative to all of a sudden have people mail their gold to them for a cashreturn?

Any insight from the rest of the community on this? :)

26th April 2010, 18:19
Define "good prices" .. current spot is 1153$ / troy ounce (37,07$ per gram) .. they pay 2802 Krone (489$) per ounce of 14k gold (58% pure) ... converting to 24k gold thats 838 $ per ounce (~72% of spot). But who knows do the appraisal? On face value it seems close to normal "gold junk" price, but I will strongly advise to read all the fine print.
DISCLAIMER: Author presents his own views on the matter, this is not financial advice!
For warning against mail-in-gold scam in US see here -> http://dailyreckoning.com/dont-mail-in-your-gold/

26th April 2010, 18:20
This is not a good deal at all when you consider the real price of gold today, the powers that be are trying to buy as much gold up as possible at the moment, hence restrictions in Europe have been lifted somewhat. This company you pointed out was offering for 1 troy ounce or 31.1 grams of 14k gold 2.802 Norweigen Kroner! That's less than a third the price of gold today which is selling at today $1159 dollars though thats for either 22 or 24 karot gold.

Melted down they are still making a very very handsome profit.

Gold Jewellery is usually worth more than its weight in gold if you sell its second hand as there is always a market for it and don't forget any stones that are embeded in the gold.

Keep your gold for emergencies unless its something you don't want, or sell it privatly as Jewellery.
PS: This is NOT financial advice only observation!

27th April 2010, 07:20
Thanks for the replies, Baron and SaiCO

Reason I brought it up wasn't because I'm in any ways planning to sell any gold, but because I immediatly thought about the massive collection of gold that I've heard about different places.
When this happens in a country like Norway, which is run like we aren't a part of this world, it kinda rings some alarms in my head.

I'll follow that company a bit and see if I can dig up anyone else that have reacted to the same.

Thanks again :)

27th April 2010, 07:48
The price of gold has quadrupled in the last 9 years. Some financial newsletters were saying in 2001 that gold was at the bottom of the market and would shoot up. I think it's only now that the general public have realised this. In the UK we have lots of these "send us your gold" companies which have only sprung up in the last year or so. As far as I'm aware it's just market-driven. In other words the public have realised that gold is much more valuable now than it used to be, plus they tend to have less money than they did a few years ago, so these companies are encouraging the public to sell their gold because the companies are confident that the gold price will keep going up.