In most parts of the country today, “We Buy Gold” stores have become common sights. But chances are you haven’t seen any stores that post prominent offers to buy platinum, rhodium, or even silver.

So what are you supposed to do if you have platinum scrap that you would like to sell or recycle?

“Is there such a thing as gold alloy?” a caller asked us recently. He then went on to explain, “I was at a coin collector’s event last month and a rather angry gentlemen told me that there is no such thing as a gold alloy. I didn’t want to get into an argument with him about it, but what’s the story? Is there really no such thing as a gold alloy?”

Have you ever been to a pawnshop? If you have, chances are you have been surprised to see that a pawnshop looks just like any other store. There are display cases, counters, cash registers, and other familiar fixtures. Chances are you were greeted by a polite individual who treated you respectfully, and who was happy to discuss the details of your transaction.

People have been asking us a lot of questions about platinum over the last few months. So as a service to you, our readers, we will devote today’s post to answering some of the most common questions we have heard.

In today’s post, we’re going to tell you some insider’s secrets on how to extract more gold from old, used gold plating tanks. But because we know your time is valuable, we’re going to start out by telling you one of the most important things first . . .

and Other Questions to Ask at Thanksgiving

Thanksgiving will be here before you know it. We would like to make a suggestion. Instead of trying to avoid talking to old Uncle Edwin about politics while you chew your turkey, why not spend your time profitably by asking some of the questions we will explore in today’s post?

Who near you buys gold-filled jewelry, gold-plated jewelry, solid-gold jewelry, gold scrap and other gold items? 

Those questions might be the first to come to mind when you have gold items that you want to sell. But did you know that there are other, more important questions?

Don’t Be Tricked when You Sell Your Platinum . . . Be Treated Honestly Instead!

Trick or treat! Those words might be used on Halloween. But they are also worth keeping in mind when you sell platinum scrap. Will you be tricked when you sell it, or treated fairly? Here are some things to consider.

Platinum comes in many forms. There are nice bars of platinum bullion that sell at high prices. (After all, platinum is trading for $872.00 on the London Fix . . . why shouldn’t bullion bars be selling for a lot of money?) Platinum can also be found in catalytic converters, in some aircraft components, and in used laboratory testing equipment. 

Recently, a man wanted to sell some old gold filled jewelry that he had inherited from an elderly aunt. There were actually quite a few items - a bracelet, a few old rings, a necklace with a pendant attached, a small decorative pin, and a few other items. So the man put all those items in a Manila envelope, got in his car, and drove to a store that displayed the sign, “We Buy Gold.”

If you have precious metal items that you would like to refine for profit, “Where is there a precious metal refinery near me?” is a logical question to ask. The problem is, it might not be the right question to ask. Here are some of the reasons.

“Smelting” sounds like a form of melting . . . but it isn’t!

“Smelting” also sounds like going fishing for shiny little fish that are called smelts . . . but it isn’t that either!

So, What Is Smelting?

Every few months we hear another story about a crime involving precious metals. Another one came along last week, when the Metropolitan Museum in New York packed up a golden Egyptian coffin it owned and shipped it back to Egypt, from where it was stolen in 2011. The Met acquired the coffin in 2017 from an antiquities dealer. The only problem was, it still belonged to Egypt. (You can read the full story in “Ancient Gold Coffin Returned to Egypt from New York as Looted Antiquity,” an article that was published by the Associated Press on September 25, 2019.)

Let’s say you walk into a pawnshop to check out whether there are any gold, silver or platinum items there for sale – items that you can buy for low prices. Or you walk into a coin dealer to see what’s on display.

Let’s also say that you find what seems to be a good deal. It’s a South African Kruggerand that contains 1 Troy Ounce of gold. When you ask the dealer the price, he replies, “$1,505.00, because we sell at current trading prices.” So you go online, check trading prices, and decide that you will be getting a fair deal if you buy that Kruggerand for the asking price. So you go back to the pawnshop or coin dealer, pay asking price, and assume that everything has gone well.

We have often written on this blog about places where you can acquire precious metal scrap for pennies on the dollar. Today we would like to offer advice on a higher level, by telling you about some places where you can get precious metal scrap for free.

A customer called recently and asked us, “How much gold is in platinum?” And then he added, “I guess that is a pretty silly question, right?”

Don’t Overlook Gold-Plated Items

When most of us go looking for gold items to recycle, we look first for solid gold items, and with good reason. Even very small items made of karat gold can contain enough gold to make them worth a lot more than they appear – small items like stud earrings, tuxedo studs, lapel pins, tie tacks, and religious and commemorative medals.

“I just got a beautiful piece of silver-plated jewelry,” says a man in New York. “Is there any chance that the silver is plated over gold?”

That’s a logical question

Jewelry makers use lots of different ways to indicate the purity of the metal that they use in their products. They stamp certain pieces of jewelry as 24K gold, 18K gold, Sterling Silver, and in lots of other ways. And just as soon as you think you have started to understand what all the different terminology means, along comes this term, and you wonder what the heck it is . . .

Nobody likes a recession. But the fact remains that if another recession starts soon, precious metals are a good place to have your assets invested.  

During the last big historical recession of 2007-2009, the trading price of gold rose about 24%. In the same period, the Dow fell by about 35%. And something similar, though not as extreme, happened in preceding recessions. In the less-severe recession of 2001, gold prices rose more than 4%, while the Dow fell about 15%.