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Gold prices soar but shopping centre buyers not paying up
Rosemarie Lentini | The Daily Telegraph | January 05, 2012
Gold prices are on the way up. Top buyer Jerry Zheng at his CBD business. Picture: Adam Ward
WITH gold prices soaring and licensed traders willing to pay up to 80 per cent of the jewellery’s market value, now is a good time to sell unwanted gold jewellery.
But beware of the pitfalls before dealing with a buyer at a local shopping centre.
Public Defender tested the market with an 18-carat bracelet.
On a day when gold was trading at $1534 per ounce, we visited five buyers and found a 115 per cent difference, with shopping centre kiosk operator Gold Buyers last.
Gold Buyers at Stockland Merrylands offered us $351 for the bracelet, plus an extra 10 per cent if the sale was finalised that day.
About two years ago Gold Buyers at Westfield Chatswood – which has since closed – offered $140.
We then went to Ian King’s Loan Office, also in Merrylands, which was willing to part with $480, compared with $170 two years ago.
The Gold Company on Castle-reagh St said it couldn’t do better than $700, still much higher than its February 2010 offer of $225.
Next was Grace City Jewellers on York St which promised $720.
Our final visit was to Sydney Gold Traders on George St which weighed the bracelet using sophisticated gold karat analysis technology before offering $805.
The difference from top to bottom was $450 with Sydney Gold Traders leading the way.
Regional manager Jerry Zheng said he offers up to 90 per cent of the spot gold price compared with shopping centre buyers which offer a paltry 30 to 50 per cent.
“Some buyers do business by increasing their profit margin,” Mr Zheng said. “We look for ways to get repeat business.”
Gold Buyers Australia, which offers about 40 per cent of the spot price, did not return calls yesterday.