ATLANTA, GA (WXIA) - Ten female friends gathered around the kitchen island comparing their small plastic bags of gold chains, charms and chunky rings. Small trinkets from long forgotten college boyfriends. A lapel pin passed down from a great-grandmother. Herringbone necklaces and so called noodle bracelets from the 1980s that they wouldn't be caught dead wearing now.
They're taking part in a gold party.
The guest of honor is Robert Oberth of the Gold and Coin Exchange who, based on what he finds, is willing to pay just under the going rate for gold, take the jewelry and cut checks on the spot.
"There's been an explosion of gold parties across the nation and here in Georgia. With the economy the way it is and the price of gold so high, many think it's the perfect time to clean out those dresser drawers and make some money', said Oberth.
We're not talking petty cash.
JoAnne Jones brought, among other things, a chunky gold bracelet she found in an Atlanta restaurant parking lot nearly 20 years ago.
"I remember the night I found it. My husband and I went back into the restaurant to ask around. I even placed an ad in the newspaper to try to find the owner. No one ever came forward so I put it in my jewelry box. I completely forgot I had it", said Jones.
That forgotten piece of lost and found netted Jones more than 400 dollars.
At each party, Oberth sits down with each partygoer one on one. He separates the gold by what carat it is, weighs it and performs a few tests to make sure it's the real stuff.
He usually offers about 80 percent of the current price per ounce and gives the hostess of the gold party an automatic 10 percent of what he makes. After all, he says, it's the hostess who makes his job a little easier.
"You figure all these people would have to drive to our store with their jewelry. This way they're all in one spot and we can do 10 to 15 transactions in half the time", said Oberth.
That's not to say everything gets sold and bought. Oberth told one partygoer she was better off keeping an antique ring from a relative because it had little gold in it, but the piece and the stone in it would go for a lot more in its original form.
Most walked away with more than 400 dollars in cash and some netted over a thousand dollars.
Consider it as fun as a Tupperware party, expect instead of paying as you leave there's a freshly cut check in your hand.
BBB recommends keeping the following tips in mind when attending a gold selling party:
? Is the dealer operating legally? Under the Michigan Precious Metal and Gem Dealer Act, dealers should be registered with the police department where the gold party is taking place. The law also requires these gold dealers to keep a permanent record of each transaction and keep all of the precious items they purchase for at least nine days.
? Understand the scales. The weight of gold helps determine its value. If you measure your jewelry on a home kitchen or postal scale it is important to understand that jewelers use a different measurement standard called a Troy ounce. A common U.S. scale will measure 28 grams per ounce, while gold is measured at 31.1 grams per Troy ounce. To add to the confusion, some dealers will also use a system of weights called pennyweight (dwt) to measure a Troy ounce while others will use grams. A pennyweight is the equivalent of 1.555 grams. Consumers need to be alert that a dealer does not weigh their gold by pennyweight, but pay them by the gram. This would allow the dealer to pay the seller less for more weight of gold.
? Know your Karats. Pure gold is too soft to be practically used so it is combined with other metals to create durability and color. The Federal Trade Commission requires that all jewelry sold in the United States describe a karat fineness of the alloy. 1 karat equals 1/24 of pure gold by weight. So 14 karats would mean the jewelry was 14 part gold and 10 part other metals. It is illegal for jewelry to be labeled "gold jewelry" if it is less than 10 karats. It is important to know the karats of your gold to make an informed decision on the scrap value of your jewelry.
? Call a local jewelry store or check with an online source, such as www.goldprice.org, to verify the current market price for gold before you sell.
? To ensure you are getting the best price for your jewelry, have it appraised before selling. Dealers at gold parties are only paying you for the karats and weight of the gold. Your jewelry may be worth more than that price when you include workmanship, artistic value, and embedded gems for the piece as a whole.
BBB also warns to be aware of the following gold party scams:
? Cheating on the weight. Don't have your jewelry weight determined by pennyweight (1.55 grams) and be paid by the gram. Make sure you are paid the appropriate price based upon the system of measurement used to weight your jewelry.
? Disputing karats. Some disreputable dealers will try to persuade you that your gold is less karat than it really is. Identify and understand the karat value stamped on your jewelry before attending a gold party.
? Combining karats. Don't let jewelry of different karat value be weighed together. Some dealers will weigh all jewelry together and pay you for the lowest karat value. Separate your jewelry by karat value before attending a gold party.
? Undervalued Offers. Some dealers know people are just looking for quick cash to put in their pockets and will offer you money for your gold that is lower than the actual value. It is important to know the market price for gold and the weight and karat value of your jewelry to understand the difference between a good and bad deal.
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