More on how we set our prices
In our family business across the country we have found that professional gold buyers typically pay in the 70%-80% range of the gold market price for gold jewellery. Note that pawn shops and unethical buyers typically pay much less and will involve you in negotiations, working to pay the least they think you will accept. We have approached this business in a very different way by doing business in good faith and calculating the most we can offer while still making a buck. Furthermore, we do research to find the highest price in the city and confirm that we can always beat, or match, that price. We began paying 70% of the melt value of gold in Ottawa, and have recently been able to raise our payouts to 75+% of the gold market price. Our business model allows us to offer the highest prices in Ottawa both upfront and hassle free. The tables above show today’s prices by karat or common item. These payouts are calculated by taking the market price of gold and silver, typically listed in ounces, and dividing by 31.1 (note: there are 31.1 grams in a Troy ounce). We multiply our payout rate based on what we are able to offer after costs while also considering the prices offered by other buyers in the region. This will give us the price for 24K gold jewellery or pure silver jewellery. Gold itself is measured on a scale of 24 (similar to the hours in the day) so to calculate the price for a particular karat we multiply the 24K price by the item’s karat (ex. 14K) and then divide by 24 (ex. The 14K price is 14/24ths of the 24K price). What you see is what we pay! There are no fees or commission charges like you may find elsewhere, all appraisals are free and there is no cost for stone removal. If you do decide to sell, we will write you a check on the spot that can be cashed right away! Please visit our “What to Expect” to be walked through the entire evaluation and payment process.
Why not 100% of gold market price for jewellery?
There are 3 main reasons why we, and other buyers, cannot offer 100% of gold market value for jewellery.
Dealing with jewellery versus trusted coins and bars comes with inherent risk and margins for error in both their design and evaluation. We understand that some jewelry presented and measured as 10K, 18K, etc may truly be 9.5K, 17K, etc. Our measurement techniques are very accurate but understand that some jewelers (on purpose or not) have made errors in the purity of their items. Unstamped items compound this margin for error. If the true measurement is close to the stamped karat, we give you the benefit of the doubt and offer 10K prices for items that are truly 9.5K. Other buyers (particularly mail-in buyers) do not do this. Through our analysis we have found that stamped items, when refined, result in errors of 2%-7%. These small bonuses mean that we are actually paying more than our posted prices for your true gold weight. We have yet to find an item stamped at a particular karat that measures at a higher purity so have never paid less than the true karat. Another secondary risk for us is the exposure to the gold market price. It takes about two weeks to turn around our refining process and prices in gold can fluctuate 1%-2% in that time. This risk is built into our pricing.
The cost of refining items is built into our pricing – a cost not necessary for pure coins and bars. You will find refining costs built into other buyers’ pricing as well. As we refine the items ourselves, our refining costs are close to half of those required of other local buyers. Even a buyer that looks to resell purchased items will only resell extremely nice pieces and the bulk of their inventory is refined in a similar manner. Should we find a nice piece in your load that will be worth more than gold or silver value, we will let you know and not purchase the piece if you wish.
The reality is that Ottawa Gold is a business providing a professional service and there are costs associated with providing this service. These costs are built into our pricing. #1 marketing our service so that you know that it exists and will be able to take advantage of our great prices. If you didn’t hear about us, you would be stuck going somewhere else. #2 staffing a professional office so we are prepared to offer the service whenever you are prepared to unload your items. #3 profit for return on our investment in time and funds that are held until the end of the refining process. For these reasons, our payout of 70%-80% far exceeds industry standards. With the cost of refining these items and paying modest office and marketing expenses, our profit margin is small. Also, as a side note, the fees involved in refining items make refining inaccessible for people with only a handful of items. Only through dealing in large volumes does it become cost effective. Our prices are set so that we can offer you the highest amount for your gold and silver while still making a profit. We deal in large volumes, so you get the highest returns.
Up to 98.5% of bullion market price for trusted coins and bars
We offer higher prices for 24K bars and coins than we do for 24K jewelry. Please note that we have not found any other gold buyer advertising this.This difference is due to the inherent risk and margins for error that exist when dealing with jewelry that do not exist when dealing with trusted bars and coins. When we identify a trusted bar or coin we will know the exact weight, purity and gold content. We run a tight ship but the cost of our office, marketing expenses as well as the cost of refining precious metals leaves only about 1-2% profit for trusted coins and bars. We pay over 98.5% for the one ounce Canadian maple leaf as we don’t incur costs for refining. It is a true pure coin and is the most desirable to hold for investors. Our prices are set so that we can offer you the highest amount for your gold and silver while still making money. We deal in large volumes, so you get the highest returns.
How we compare to the industry
Pawn shops, jewellers, mail-in websites and mall kiosks are not much in the way of competition. Our customers do their research and quickly learn that unless prices PER GRAM are posted on a professional website, you are likely to encounter a negotiation where the buyer will give you as little as they think you will take. If we find an offer that appears to be higher than ours, we test it out. Other offers we have tested were later found to be either fraudulent or presenting prices that get eaten up by fees of some kind, visible only in the small print (or no print). We have yet to find ourselves at the end of the process with more than what we offer upfront.
Know the players
- Jewellers – typically charge fees for evaluations, stone removal, etc. Jewellers may offer to buy stones but may offer only several dollars. After fees and the meager addition of stones, offers are significantly less than advertised.
- Mall kiosks – offer lower prices for the “convenience” of selling in malls.
- Pawn shops – Make their business on offering the least amount they think you will take. Higher payout claims are designed to lure you in. You will be in for a negotiation and unless you know exactly the exact worth of your items before arriving, you will certainly be underpaid.
- Mail-in websites – difficult to follow-up when you don’t get what was promised on their website.
- Amateur buyers – meet you at a local coffee shop, are not bound to any offered prices, difficult to find after the transaction.
- Professional buyers like Ottawa Gold – higher prices in a professional setting.
Our Price Guarantee
- Must be a written offer to purchase jewellery from a recognized gold buyer, from less than 7 days ago, to ensure gold spot prices are relatively constant.
- The quote must be based on gold/silver value – and not the value of the stones. (This is because we do not purchase stones. We will however remove them and return them to you).
- The offer is subject to our own testing and the manager’s discretion. If the other gold buyer made a mistake in identifying the karat of a piece, for example, we would not beat that price.