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Price Confusion Scares Some Cash for Gold Sellers
Feb 02, 2012 (03:02 PM EST)
WESTON, Fla., Feb. 2, 2012 /PRNewswire/ -- Confused about your gold value? Join the crowd. Consumers report the primary obstacle in selling unwanted gold jewelry is confusion about their gold's true worth. It appears the lack of knowledge about the weight of their gold and unfamiliar terms like "pennyweights (dwt)," "grams" and "troy ounces," intimidates many potential gold sellers.
A telephone survey conducted by internet gold buyer, GoldFellow.com, revealed a telling statistic. The survey consisted of 600 people who had already received the company's free FedEx® insured mailing label, but never sent their gold to the company. When asked why they decided against selling, 78% stated they were unsure of the amount they should accept for their valuables. Asked if they were still interested in selling their unwanted gold, a majority said yes.
Barbara Whitman of Seattle, WA said she ordered information from six different gold buyers only to trash all of them. When questioned by a GoldFellow.com representative as to why she chose not to send her gold, Whitman admitted her confusion.
"Honestly, I felt dumb," said Whitman, "but I said I wanted an idea of how much money to expect and I was clueless as to what a 'price per pennyweight' meant. In my case I was curious to know how much I'd get for my mother's charm bracelet and a few other small things. So, I never sent it."
Michael Gusky, founder of GoldFellow® said he was troubled by the survey's results. He realized his industry hadn't provided a clear answer to helping consumer's gauge their gold's dollar value before selling.
"Every customer is curious about their gold jewelry's worth," said Gusky. "Selling gold by gram weight and pennyweight is very confusing and a challenge to translate. Apparently, we've been communicating our company's offering in the wrong language."
Gusky accepted the challenge and created an innovative solution via its exclusive "Gold Payments Gallery," found on its website www.GoldFellow.com.
"It's a fantastic interactive tool, a virtual show and tell," said Mary Hamilton, a customer support manager who's worked with Gusky since 1987. "You can view hundreds of items purchased by us daily. Each photo shows the actual dollar amount we paid along with the gold karat and weight. It allows you to see and compare your items with those similar - or possibly identical - to jewelry GoldFellow® has already purchased. Visitors to our site have been spending an average of 7 minutes checking out how much money others have received."
And what does, Whitman think?
"Mary called me again a few weeks later asking if I'd be willing to go back and look at GoldFellow®'s new photo gallery. It's really a wonderful concept. I saw a number of pieces just like those I wished to sell along with the dollar amount GoldFellow® paid. I decided to try it and four days later I had a check for $987. I'm very happy."
"We have taken the mystery out of gold selling," added Gusky who is very proud of GoldFellow®'s innovation.
Michael Gusky began his gold industry career in 1977. His fine jewelry company became the largest supplier of gold to America's retailers and was sold to Warren Buffett's Berkshire-Hathaway in July, 2007.