Important Information on Gold Party's

THE GOLD PARTY SCAMS HOW THEY DO IT 4-29-2008

THE PURPOSE OF THIS LETTER IS TO EXPLAIN WITH NUMBERS HOW YOU CAN BE CHEATED AT THESE
GOLD PARTIES WHICH ARE GOING ON AT HOMES, RELIGIOUS PLACES, SCHOOLS.

FIRST LET'S AGREE ON ONE SIMPLE THING " NO BODY DOES BUSINESS TO LOSE".

I WILL START WITH SIMPLE NUMERICAL VALUES.

1- ONE TROY OUNCE = 31.103 GRAMS
2- 1 DWT = 1.5551 GRAMS ( THIS IS KNOWN ALSO AS PENNY WEIGHT )
3- PURE GOLD IS 24 KARAT OR 999.9 PURITY.
4- 21 KARAT GOLD IS 0.875 PURE OR 21/24= 0.875
5- 18 KARAT GOLD IS 0.750 PURE OR 18/24= 0.750
6- 14 KARAT GOLD IS 0.585 PURE OR 14/24= 0.585
7- 10 KARAT GOLD IS 0.417 PURE OR 10/24= 0.417

THE DAILY PRICE OF GOLD WE SEE ON THE NEWS EVERY DAY IS FOR ONE TROY OUNCE . IF YOU DIVIDE THAT PRICE BY 31.103 GRAMS YOU WILL FIND THE PRICE BY ONE GRAM OF 24 KT GOLD.

FOR EXAMPLE :TODAY'S PRICE $880 PER OUNCE DIVIDE BY 31.103, THIS GIVES 880/31.103=$28.29 A GRAM
FOR 21KT , THE PRICE IS $28.29X 0.875=$24.75 A GRAM.
FOR 18KT , THE PRICE IS $28.29X0.750 =$21.21 A GRAM
FOR 14KT , THE PRICE IS $28.29X.585 =$16.54 A GRAM
FOR 10KT , THE PRICE IS $28.29X.417 =$11.79 A GRAM

SOME OF THE GOLD COMES WITH CUBIC ZIRCON OR OTHER SYNTHETIC STONES, AND SOME ARE NOT
EXACTLY ACCURATE IN KARAT. AFTER MELTING WHAT WE BUY WE NORMALLY LOSE FEW GRAMS ,
AND 0.5 POINT IN KARAT WEIGHT.

WHEN WE SELL THE SCRAP GOLD , WE GET 93% OF THE DAILY PRICE OF GOLD AT THE TIME OF SALE,
SIMPLY BECAUSE THE REFINERY WANTS TO MAKE SOME PERCENTAGE .

NOW, WE WILL SHOW IN NUMBERS HOW PEOPLE GET CHEATED !!

IF WE TAKE ONE GRAM OF 21KT AND SELL IT AT TODAY'S PRICE%u2026
$24.75 X93/100=$23.01 PER GRAM

TODAY WE PAY OUR CUSTOMERS $19.50 PER GRAM.

THE PROFIT PER GRAM IS : $23.01- $19.5=$3.51. WE HAVE TO PAY TAXES AT THE END OF THE YEAR ON ALL OF OUR PROFITS.

THE PROFIT PERCENTAGE PER GRAM=3.51/23.01=0.152 OR 15.2%

HERE IS THE SCAM%u2026%u2026%u2026%u2026 IF THOSE PEOPLE SPONSORING THE PARTIES AND PAY WITH CASH, PAY
10% COMMISSION TO THE HOST AND 5% TO THE PERSON REFERRING THE HOST TO THESE PEOPLE, AND TO PAY THEIR EMPLOYEES WHOM ARE DOING THE ACTUAL BUYING THE NUMBERS WILL SHOW
A DEFINITE LOSS EVERY TIME EVERY PARTY, THIS IS IMPOSSIBLE%u2026%u2026%u2026

IN ORDER TO MAKE A PROFIT THESE PEOPLE MUST CHEAT ON THE WEIGHT, THEY BUY YOUR GOLD BY DWT OR PENNY WEIGHT WHICH IS EQUAL TO 1.555 GRAMS, THEY PAY YOU FOR 1 GRAM (ONE GRAM),
THIS MEANS THEY CHEATED YOU OUT OF ALMOST 1/3 OF YOUR MONEY.

THE SECOND WAY IS TO CHEAT ON THE KARAT, BY TELLING YOU THAT YOUR GOLD IS LESS KARAT THEN IT ACTUALLY IS, SOME OF THE PEOPLE WHOM ALREADY WENT TO THESE PARTIES WILL HAVE TOLD US THAT THIS HAS BEEN DONE TO THEM INCLUDING MY OWN DAUGHTER.

THE THIRD WAY IS TO PUT ALL THE DIFFERENT KARATS TOGETHER ON THE SCALE AND PAY YOU FOR
LOWER KARAT PRICE.

THE FOURTH WAY IS TO OFFER YOU AN AMOUNT OF CASH FOR YOUR GOLD LOWER THEN ACTUAL VALUE AND SEE IF YOU WILL ACCEPT IT.

THE FIFTH WAY IS TO CONVINCE YOU THAT THE KARAT STAMPED ON YOU GOLD IS NOT CORRECT,
BECAUSE OTHER COUNTRIES MAY HAVE A STAMP ON THE YOUR GOLD THAT YOU DO NOT UNDERSTAND, HE CAN THEN TELL YOU THAT YOUR GOLD IS NOT THE KARAT YOU THOUGHT IT WAS.

ONE OF THESE GOLD COLLECTORS WHO IS CALLING HIMSELF
( REFINER) DOES NOT HAVE EVEN AN ACTUAL ADDRESS FOR HIS REFINERY,AND DOES NOT REFINE ANYTHING, HE SELLS $500,000.00/WEEK TO THE SAME REFINERY WHERE WE SELL OUR GOLD, WE RECEIVE 93% FOR OUR SCRAP, HE RECEIVES
92% FOR HIS GOLD BECAUSE HE WANTS CASH FOR HIS GOLD.

FINALLY, WE LIVE IN THE COMMUNITY THAT WE ARE DOING BUSINESS IN JEWELERS, WE ARE LIKE LOTS OF HONEST JEWELERS IN YOUR COMMUNITY,WE SUPPORT LOCAL SCHOOLS, LOCAL RELIGIOUS AND NON PROFIT ORGANIZATIONS, WE ARE HERE TO STAY, NOT TO CHEAT, AND RUN WE PAY OUR TAXES LIKE ALL OF YOU DO.

MY ADVISE TO ALL CUSTOMERS, BEFORE YOU SELL YOUR GOLD AT THESE PARTIES, WEIGH YOU GOLD AT YOU JEWELER, DIVIDE YOUR GOLD INTO BAGS ACCORDING TO KARAT WEIGHT, AND ASK FOR THEIR PRICES , THEN COMPARE BETWEEN THE TWO.

WEIGHT CONVERSIONS FOR GOLD, SILVER AND GEMS:
Gold and silver are measured in Troy weight, a system that includes pennyweights, ounces and pounds. The ounces and pounds do not equal the Avordupois or customary U.S. system that other common goods are measured in. For example a troy ounce weighs about 10 percent more than a Avordupois ounce.

* 24 grains = 1 pennyweight = 1.5552 grams
* 1 gram = .64 pennyweight
* 1 pennyweight = 1.56 grams or .05 troy ounce
* 20 pennyweight = 1 troy ounce = 31.1035 grams
* 12 ounces = 1 pound troy = 373.24 grams.
TO CONVERT:

* Avordupois Ounces to Troy ounces multiply by .91
* Avordupois Ounces to pennyweight multiply by 18.2
* Avordupois ounces to grams multiply by 28.35
* Troy ounces to grams multiply by 31.1
* Troy ounces to pennyweight multiply by 20
* Troy ounces to pounds troy, divide by 12
* Pennyweight to grams multiply by 1.56
* Pennyweight to troy ounces multiply by .05 (or divide by 20)
* Grams to pennyweight multiply by .64
* Grams to troy ounces multiply by .032
* Grams to carats multiply by 5
* Carats to grams multiply by .2 (or divide by 5)
* Carats to "Points" multiply by 100.
* "Points" to carats multiply by .01 (or divide by 100)

In the chart above it tells us that to convert grams into penny weight we should multiply by .64 so lets take 50.0 grams of 21 karat gold, and do that what did we get 50.0 multiply by .64=32 penny weight. Now how much should we give per penny weight well lets see if we are giving $20.00 m per gram multiply that by 1.55 = 31.00 per penny weight or (dwt)

Ok so now you have your penny weight, and the amount you should be getting for it lets multiply the two 32 penny weight x 31.00 = $992.00.

Ok now lets do that by grams 50.0 grams x 20.00 = $1,000.00.

The difference between the two is $8.00 you see if you are buying for the right amount to begin with the two amounts are almost the same, showing you that it is not the measuring amounts that are the problem it is how they are used. If we take the same 32 penny weight, and multiply it by what most are paying by penny weight that would be on the high end lets put it at 25.00 per penny weight 32 x 25.00 = $800.00 big difference would you not say.

On Monday a gold party was held at one of the house's of worship in the area, we sent in someone with some gold to see how it works this is what happened.

174 grams of 18kt gold was sent, we also sent 21kt, but after what happened with the 18kt she found out all she needed to know so she did not bother showing him the 21kt gold. She was told that they weighed 111 grams a difference of 63 grams just to start, and 9.3 grams of that was 14kt how did he know that well he did a little light show for her passing it under some ultraviolet light complete non-sense.

He offered her $250.00 for 111 grams, she told him "are you crazy?", he then said" sorry I made a mistake", he recalculated, and then offered her $1,550.00. Now the interesting part is this we had bought those items in our store just one hour before, all items were stamped 18kt or 750, checked by an acid test to see the gold karat, there was no 14kt items with them we bought these for $3,150.00 on Monday we were buying 18kt gold for $18.00 a gram. The first offer was for $2.53 a gram after doing his recalculation he then offered her $13.00 a gram for 18kt gold, and if you calculate it by penny weight or DWT the price drops to $8.90.

The scale is under the table so the customer can not see it you do not know if you are selling by gram weight or penny weight, now we can all under stand how they can offer 10% to the host of the party, and another 5% to the person who's name was used as a referral, when you are working with a very small percentage to begin with that is if you are a jeweler who is honest, you can not pay 10%, and another 5% we are not even making the 10% so they have to make it up some were, and that is by cheating simple, and easy you do not have to think twice just look at the numbers. He did write these offers down on his card, and on his flier.

So what should you do? Well if you are going to go to one of these gold party's go to one or more honest, and reliable jewelry store in your area if you can then have your items sorted by gold karat have them weighed, and you should write how much they weigh, and what the offer is. Do not accept being told they are worth this much ask how much thy are taking them for by gram weight. In our store we post the price as of Saturday the gold price per gram was

22kt $21.00 a gram

21kt gold at $20.00 a gram

18kt gold at $16.00 a gram

14kt gold at $11.00 a gram

10kt at $7.00 a gram

After you get your prices you should get more or at least equal to what ever was offered to you. If your gold has been sorted by karat, and they try to tell you that several items are 14kt in the 18kt or 10kt in the 14kt, and you have all ready had it sorted in another jewelry store walk away. If they tell you your items weigh less then what you have written down, walk away you do not need to waste your time you already know that they are cheating you.

When you do not take their offer this was the interesting part the person we sent was told take the offer 10% is going to the house of worship don't you want to support your house of worship, we found out after several calls that the they were not getting on penny out of all of it that the women that was hosting the party there was getting it all. That is what they told us anyway.

So they steal you with the gram weight telling you that your items weigh less 1 penny weight is worth 1.54 grams, so if they are buying by penning weight they are stealing one third of your gold, some places do tell you that they are buying by penny weight, but so far the majority do not. They cheat you by telling you that your gold is less gold karat then it is, and they cheat you again by giving you less then what your gold is worth.

On the same day as this gold party one women came into the store who had also been there, and showed us her 21kt gold, saying that she was told that several of the items were not 2lkt, but they were 18kt, she knew that these people were lying so she walked away, and came to us, She was right none of her items were 18kt gold they all tested positive for 21kt.