My Sting Operation: The Results are Gold
When we returned from a trip last week, we found two mailers encouraging us to sell gold and silver to local outlets. What a great opportunity to discover what other buyers are offering for precious metals!
I selected a small amount of gold – just five pairs of earrings – and a small sterling lot. I weighed the metal and calculated what I would pay a client for those materials. And then I went on my sting operation.
First I went to a buyer advertised on one of the flyers. Two gentlemen were set up in a meeting room at a modest motel near the highway; the buying event was only for five days. They told me they were based in Chicago, but the company they work for is in New York. One guy began to work with the materials I presented. To his credit, he quoted the correct spot price for the day and correct weights for each lot. (From professional colleagues I’ve heard of offers made with false weights and without weighing the metal.)
He then texted his boss, explaining that even the small amounts I presented were “over his limit” for confirming a purchase price. After about 15 minutes, he finally got approval and offered me $1045 for everything. The flyer had a coupon on it, offering an additional 20% bonus. When I told him that I could get the coupon from my car, he said the bonus was already built into the price, since I mentioned the flyer. He was able to get a bit more approved, offering $1200 as a final price.
Next, I went to a local jewelry store that advertised WE BUY GOLD. They did not buy silver at all. (Because there is so much silver on the market right now, even some refineries are not buying it.) They took the gold earrings and calculated a price for them, offering $420 for the lot.
Surprised at the low price, I asked them what the spot price was for the day. The spot price is the current market value at which a commodity can be sold; it is foundational to how we calculate what we pay for silver and gold.
To my great surprise, the woman behind the counter in the jewelry store looked confused and shook her head. I asked, “You don’t know what the spot price is?” She acted as if she didn’t know what I was talking about, then offered to pay me $500 if I would take cash.
So here’s the kicker:
For the entire lot, I would pay my client $1623. The best offer I got was $1200.
For the gold earrings alone, I would pay $1095. The jewelry store offered me $500.
For those holding on to gold and silver jewelry, sterling flatware, coins, or bullion, this experience reinforced an important truth: timing and expert guidance matter. Knowing when to hold, when to sell, and where to place it can make a meaningful difference in the outcome. Because I sell to a trusted wholesale dealer who pays top dollar for precious metals, Spirit & Space clients are paid higher rates than most local buyers pay.