Is this a good way to into gold for cheap ($1,000 per ounce)?

There is an local individual who advertises "raw" gold melted into generic rounds or bars for $1,000 per ounce. Buyers are required to pay 70% upfront and the remaining amount upon pick up of gold. His minimum requirement is five ounces.

Has anyone purchased gold this way? This seems like a great way to get into gold at a steeply discounted rate. My concern is how hard will it be to offload these in the future? Will the future discount to sell going to be to great to make it worthwhile?

Thanks in advance for your thoughts and opinions.

 

Log in or Sign up to hide this ad.

That is 50% below melt and you expect this to be legit? Gold being sold below melt that should always set off alarm bells...

 

This sounds a little fishy, but I'm not always a trusting person that way. I wouldn't want to pay $3,500 for five ounces of gold I don't even have yet. If you do go through with it, I'd make sure that it is gold, and not gold plated lead or something like that.

 

He'd have to be very dumb to sell pure gold for that price.
It's either a scam or its 14k or something else.

 

​Danger, Will Robinson! Danger!

 

That ain't right.

 

I'm willing to bet he isn't refining the scrap at all just melting and pouring it into bars and that's what he means by 'raw'. In this case who knows how much actual gold your getting and it's going to be hard to sell a bar of unknown purity. You'd have to buy the gold and then refine it yourself (which will cost a decent amount if you don't have the equipment already) or pay a refiner to do it for you which again will cost a bit of cash. So in the end this cheap gold may not end up being very cheap at all. Consider you get a ounce and I'm being generous here, that's 70% pure so you getting roughly 21.77 grams for 1,000 or 45.93 a gram, versus real pure gold at 51.91 is it worth saving $6 per gram if the purity was 70% which it may not be? And when you add the cost of actually refining the ounce into the price per gram I bet you wouldn't be saving anything but paying more overall. I would be highly skeptical if I were you and if your still considering it ask the guy selling if he will meet you to sell the bars at your jewelers so they can test the bars for you before purchase. You can actually arrange to do this if he does agree I guess or the bluff may be enough that he won't contact you back and then you'll know he wasn't on the up and up.

 

What's that old saying again.. "If it sounds too good to be true.... " I'm sure you can figure out the rest of the saying..

 

I think this one is a joke....

 

In my experience of over 60 years on this planet, I have found that, in general, you get what you pay for.
No one in their right mind would sell an ounce of pure gold for anywhere near that price in today's market.
In short: it's a scam.

 

I agree its most likely melted miscellaneous. Its a horrible way to buy gold, since you will do not know what you are buying, and will never get full value for whatever it is unless you get it refined.

Gold is gold around the world, and almost without exception anyone who has it "on sale" for below world price is a con.

 

Even if it is legit, you will have a difficult time reselling it someday because any astute buyer will want a third party assay, which is what you should demand in the first place if you are contemplating a purchase in this form.

 

It's most likely low grade- 8-10+14 karot gold scrap melted down and poured into bars,he sells it @ $1000 per oz wich is a premium for him , to uneducated/ uninformed people who think they are getting a deal when what they are buying is only worth half of what they paid. I have seen people do this with faux gold nuggets. People assume that because the gold has been melted that it has been refined.

 

Thanks for the responses. This is the third time he has advertised his gold this way. When I spoke with him he said it was gold nuggets he was melting down. I had assumed it wasn't a good idea but thought I would see what you all think.