Comment by marincounty | Hacker News Reader

Comment by marincounty | Hacker News Reader

I am not a fan of government oversite, but I wouldn't mind putting a few regulations on Precious metal dealers in the United States?

I would like to see some standards in weighing the metals, and maybe minimum amounts required per gram of metal?(tied to market values)

The fine for breaking the law would be just enough so the average shop would think twice about ripping off the public.

No, I wouldn't expect the FBI to run regular stings, but if shop owners knew they might have a federal agent on the other side of the counter they just might not be such horrid individuals?

I rember being swindled over some silver when I was younger, and really desperate. I still think about it whenever I pass a pawn shop, or gold buyer.

(actually, I think some states/counties already have some laws regarding weights & measures, but precious metal buyers never get caught? I know some larger recyclers are inspected, but these little places open 24 hrs/day get way with absolute thievery? Maybe they think every sale is stolen? Or, they just don't care?)

The prices are already out there for anyone that wants to look. $1150 spot, 28.35g per ounce = $40.56 per gram. Avg 2.5g for a woman's solitaire ring = $101.40 for pure gold.

14k Gold = (14/24) = $59.15 in gold. -25% for the store and the refiner and you are at $44.36 to buy that 14k gold band.

I just looked up that same ring on a wholesaler website and retail is $245.49 plus shipping to get it to the store.

That's how a ring you paid up to $250 for is "worth" $45 when you try to sell it for scrap. No one tried to screw anyone, it's just math.

> 28.35g per ounce

No, it's 31.10g per ounce. The price of gold is always quoted as troy ounces[1]. You used the figure for the avoirdupois ounce which is used for anything that isn't a precious metal[2].

Though it doesn't really affect the argument you're making since 28.35g and 31.10g are pretty close, but how do you not know about troy ounces as a "former jeweler" (as it says in your profile)?

That's like a doctor saying body temperature is 105F or 40C.

[1] http://en.wikipedia.org/wiki/Troy_ounce

[2] http://en.wikipedia.org/wiki/Avoirdupois

I do know - but customers don't for the most part. So I just used standard and didn't worry about the pennies. It's a lot easier than trying to explain to them that there are two kinds of ounces.

> but customers don't for the most part. It's a lot easier than trying to explain to them that there are two kinds of ounces

It's that kind of stuff that makes people think that jewelers and gold buyers are crooked. Some customers--perhaps only a minority--do know the difference, and they will become suspicious and tell others.

Whenever a professional of any kind (car mechanic, doctor, tax preparer, vet) tells me something that is contrary to a known basic fact, then alarm bells go off in my head. I start thinking that this guy is either incompetent or trying to cheat or trick me in some way, and I will tell friends to watch out. Fortunately it doesn't happen all the time. I generally trust doctors for example.

In one of your other comments, you said, There are a staggering number of honest jewelers and gold buyers out there. But stories about obviously crooked people are what makes everyone say "see, these guys are ALL crooks".

Maybe the jewelers and gold buyers--like used car salesmen--have gotten the reputation they deserve.

And this is why I generally avoid these discussions. Someone will ALWAYS find a way to say you are wrong even when you are making an error in their favor. And for the very very few people that do know the difference, when you explain why you do it the way you do, and they will get more money for it, they tend to appreciate it. Not all, but most.

Perhaps the government could post "suggested" prices online that way people could easily check if they are getting ripped off.

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