What is gold buying?
There are jewelers and banks, but also pure gold purchasing companies that purchase objects containing gold from private individuals and resell them to precious metal refineries .
How is the fine gold content determined when purchasing gold?
There are several methods that dealers who purchase gold can use to determine the value of items.
The exact total weight of the objects can be determined using a precision scale. When buying gold, the fineness stamp or a line test, in which lines are drawn on a touchstone using the gold object to be tested and a test needle made of the same material, provide an indication of the fineness. If the two match in color, they have the same fineness.
One method that has the advantage of not damaging the surface of the items being purchased is X-ray fluorescence analysis. This can be used to determine the concentration of the different elements contained in the gold.
Which gold items are purchased?
Things that can be considered for a gold purchase are gold bars, gold coins, gold jewelry, scrap gold or dental gold. While gold bars must have a fine gold content of at least 99.5%, gold coins, gold jewelry, dental gold and scrap gold can also contain larger amounts of other elements.
The typical alloys for gold jewelry are 333 gold, 580 gold and 750 gold; dental gold contains gold as well as the precious metals silver , platinum and palladium . Scrap gold refers to pieces of jewelry or objects made of gold that are damaged in some way but are still suitable for gold purchase because the damage does not change their actual gold value. Companies that buy gold determine the price solely based on the fine gold content.
What is the so-called precious metal cover letter?
It is possible to purchase gold by mail. In this case, a so-called precious metal cover letter is required by law. In addition to personal information about the seller, this must also contain an affidavit of ownership.
What legal regulations govern the purchase of gold?
Buying gold in Germany is a business that is subject to supervision but does not require any special authorization. The majority of places that buy gold issue a purchase contract for their customers. In this contract, the seller must assure that the gold he is selling is his personal property and that it is not illegal goods.
What happens after the gold purchase?
The companies that buy gold send it to precious metal refineries, where the alloys are broken down into their individual components. This filters the pure gold out of the items. It can then be used again by goldsmiths or for industrial purposes.
About Gold
Precious Metals in the Lexicon
Diamonds at RENÉSIM
