Am I just stupid or was I totally ripped off?

[Michelle Wheeler]

Did a lot of research on gold filled value on many types of sites (Gold collectors, people who refine their own gold, gold calculators, eBay, vintage optical shops and reviews of refineries) before deciding to send in 7 pairs of gold filled 1/10 12K antique eyeglasses to Midwest Refineries. I called ahead to make sure they took Gold Filled items and was told the take a 5% fee on refining and that I needed to remove any non-gold parts. I shipped them 51 grams of 1/10 12K GF items. The spot price of gold the day they received my items was $2,337.97. I was sent a check for $40.00. While still in shock I called them to calmly discuss their mistake and was told it is clear on their website that they pay for scrap gold by the pound (I asked for help finding that information and was ignored) and that my frames probably had all the gold worn off and got absolutely no resolution during our long phone call. They could not return my items after 6 days because although they wait to have hundreds of pound of gold fill to refine it they cant just go to a 50 gallon drum and pick out my items. They also could not give me any more money because "They just aren't worth anything". I was expecting at least $140.00. Was all of my research wrong? Am I crazy? Or did I get taken for a ride?

 

[4metals]

Truth is they seem to make a living off of one time customers. They ship once, get screwed, and never ship again.

At best there is 2.5 grams of gold in what you shipped. At $2300 gold that is at best $184 before charges. So charging 5% they make less than $10. Who would even take the job in and do paperwork for that small a margin.

Not sticking up for them but they need to be more honest with their estimates.

 

[Michelle Wheeler]

Truth is they seem to make a living off of one time customers. They ship once, get screwed, and never ship again.

At best there is 2.5 grams of gold in what you shipped. At $2300 gold that is at best $184 before charges. So charging 5% they make less than $10. Who would even take the job in and do paperwork for that small a margin.

Not sticking up for them but they need to be more honest with their estimates.

Exactly, all they needed to say is "We don't take gold filled". I posted here to make sure that my thoughts about value of the gold was not completely out of line. I would have paid $40 for the experience, but paying $140 for the experience is a bit steep.

 

[FrugalRefiner]

Also consider that 1/10 12K isn't EVER 5% gold. Even brand new, it's underkarated. I posted here somewhere some original packaging that stated it was 4.5% gold. That's brand new, never worn, with all parts of the frame being 1/10 12K. If you consider the weight of screws, nosepieces, earpieces, etc, the weight goes down further. Then, there is the wear factor. With gold filled, all the gold is on the outside, so any wear or abrasion takes more of the gold away.

As 4metal said, I'm not trying to defend your refiner. But realistically, there was never $184 worth of gold there when the frames were brand new. I suspect there were some hidden charges in there for the small lot size, gold filled, etc. As 4metals said, they need to be more honest with their charges.

Dave

 

[kurtak]

I shipped them 51 grams of 1/10 12K GF items.

I was sent a check for $40.00.

Actually if they sent you a check for $40 on only 51 grams of gold filled they over paid you !!!

on their web site they clearly say the following -------

quote - All gold-filled material purchased outright at 15% of the spot price PER POUND. - end quote

AND - that 15% that they will pay - per pound - is if/when you send them several pound(S) of gold filled

you sent them much less then a pound

At best there is 2.5 grams of gold in what you shipped. At $2300 gold that is at best $184 before charges.

Per the bold print - $184 X 0.15 (15 %) = $27.60

Or did I get taken for a ride?

No - considering what you sent them was gold filled you got over paid by $12.40

I called ahead to make sure they took Gold Filled items and was told the take a 5% fee on refining

That 5% refining fee is what they pay for actual karat scrap - NOT - what they pay for gold filled scrap

Was there a "misunderstanding" when you talked to them on the phone - obviously

But that does not change the fact - that on their web site - they clearly define the difference of what they pay for actual karat scrap (95% spot) & what they pay for gold filled scrap (15% spot)

Personally - I think with only 51 grams of gold filled at $40 you got a VERY good deal (based on their terms - as post on their web site - for gold filled)

Kurt

 

[galenrog]

I am with Kurt on this. Small lots should always pay less. There is always more labor involved, even if it is only administrative labor. Yours was a very small lot.

That, and I also checked the website. Terms for gold filled are very clear.

May you next shipment be kilos.

Time for more coffee.

 

[4metals]

A client texted me asking for suggestions for a 30 pound lot of gold filled scrap. I jokingly texted “send it to Midwest Refiners they will run it for 15%”.. I can see him laughing now!

 

[kurtak]

A client texted me asking for suggestions for a 30 pound lot of gold filled scrap. I jokingly texted “send it to Midwest Refiners they will run it for 15%”.. I can see him laughing now!

I totally agree - 15% (flat rate) for gold filled is ridiculously low - especially for LARGE lots (batches)

For that matter Midwest Refineries "flat rate" 95% on karat scrap is "a bit" low

Most refineries (at least that I am aware of) have a "sliding scale" based on lot size sent in

The larger the lot size the higher the payout - the refinery I deal with pay between 96% - 98.5% (for karat) depending on lot size (& MUCH less on gold filled)

My point to Michelle Wheeler is that Midwest - like all refineries - have "terms" on what they payout on different types of scrap they take in - & the Midwest terms for gold filled are clearly stated on their website

Whatever "misunderstanding" that may have happened on the phone (which can happen on one side or the other - or both sides) the "written" terms on their website are clearly stated

There is the age old saying --- "buyer beware"

That goes the other way as well --- "seller beware"

Did a lot of research on gold filled value on many types of sites (Gold collectors, people who refine their own gold, gold calculators, eBay, vintage optical shops and reviews of refineries)

Michel clearly did A LOT of research before sending in his 51 grams --- he should of suspected there was something wrong with that 95% quote = to good to be true - seller beware

Kurt

 

[tmj883]

2338 spot X .15 = 351/lb. X 1/9 lb. = 39

Personally - I think with only 51 grams of gold filled at $40 you got a VERY good deal (based on their terms - as post on their web site - for gold filled)

Agree with kutak...

 

[tmj883]

Wish I could buy scrap gold filled for what turns out to be about one half the spot price. I would say it's not illegal to do what they do but certainly an unethical practice.