Our business model allows us to beat any local competitor’s offers, if they exist. Should we find any legitimate local buyer actually offering higher prices, we will adjust our prices to either meet or beat those prices going forward. So be careful – many gold buyers use high prices to lure customers in, but in reality charge fees and commissions or underpay on the karat in order to make a profit. Be sure to always read their fine print! If you do find a price higher than ours, bring in the estimate and we will not only match the price but we will beat it! We have yet to find someone arrive with a higher quote received elsewhere but, for peace of mind and to ensure you always get the best price for your items, shop around the be sure to visit us for the best possible payout.
How we set our prices:
Our prices for different gold and silver products are updated every 20 minutes and are set relative to the market price for gold and silver bullion respectively. The spot market price for bullion is for 400oz pure gold and silver bars. All gold and silver products are offered wholesale value relative to the cost to turn the piece into gold and silver bullion. For example, gold in the ground requires a lot of effort and cost to extract and refine and is therefor priced at less per gram than gold already refined into its pure form. Wholesale values are presented in this way and you will find us offering at or near spot market price for your gold and silver bullion, slightly less for standard lower percentage coins and bars from various mints and less for jewelry. The tables above show current prices for the various products. There are no fees, charges or commissions on top of this like you may find elsewhere. What you see is what we pay. We have modest profits on each transaction and our business survives on the volume offered by return and referral business. This is in stark contrasts to many traditional players in this space that take advantage and negotiate to try to make as much as possible in each transaction. All of our appraisals are free. If you do decide to sell, we will pay you on the spot!
Why not 100% of gold spot market price for the gold in my 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 far exceeds industry standards. We treat the transaction like a currency transaction rather than a cash grab. 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.
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 near spot 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 (the competition)
- 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.