The rise of gold-buying gatherings
Ever heard of a gold party? Guests are invited to a host’s house and encouraged to bring with them old jewelry to sell for cash on the spot.
Representatives from national gold-buying companies test the jewelry and other items to determine how much it is worth.
I decided to report on the rise of these gold-buying gatherings nationwide after I received invitations to two local gold parties. And in the process, I learned that these parties do not match Virginia’s law about precious metals dealers, according to some local law enforcement officials.
Check out my weekend story about gold parties here.
Have any of you attended a gold party? If so, tell me about your experience with it.
April 19, 2011 - 11:07 AM
I have not attended a party, but sold some gold at Valley View Mall this past Christmas season. I saw that there were several businesses buying gold and decided to “shop around” for the best price. I got prices ranging from $50 – $75 dollars for 1 piece! This is a business that needs better regulation, in my opinion.
are you seriously asking people to admit to participating in illegal activities?! LOL yeah okay, Jenny.
Gold parties are illegal in the city and the county. They are regulated by the police departments and have to be in fixed locations. Capitalism regulates the price you get at the counter btw, not the goverment (yet).
Good point, Becky!
“Dealers must hold a license to buy precious metals, and they must conduct business from a fixed and permanent location listed on their license, such as a retail store. They also must collect ownership information and provide a copy of the bill of each sale to law enforcement, among other regulations. Violation of the law is considered a Class 2 misdemeanor.”
Brick & Mortar business in Roanoke are heavily regulated as your paragraph above states.
When going into business that “buys” precious metals, they are going to pay you what it’s worth to them. There’s nothing that “regulates” what they can pay.
As to carrying scrap to your local jeweler & having them analyze what you’ve got, taking their time & expertise… That’s like going to the doctor & saying “I’m not going to pay you for your expertise, just tell me what’s wrong & I’ll go to the drug store & buy something”
Willing buyer / willing seller
p.s. How many extra middle-men get involved when the party host gets a cut, the refer a cut, and the representative of course. So go to two local businesses that buy, and take the best price !!!
Becky, I don’t think attending these parties is necessarily illegal… only the buyers and possibly the hosts have something to worry about.
For anyone who decides to drag out the tired old line “it’s nobody’s business”, let me remind you that the regulations regarding this kind of thing are in place to protect people from being ripped off. Sure, someone may be thrilled to get $500 for some old jewelry, but not if it’s really worth $5,000. Obviously you’re not going to be able to sell jewelry to a dealer for exactly what they’d sell it for, but these “parties” involve profit margins you could drive a truck through, all based upon the false sense of security provided by having it at a so-called friend’s house. Anyone who invited me to one of these things would be out of my life quick, because a true friend wouldn’t set someone up like that.
5.“Dealers must hold a license to buy precious metals, and they must conduct business from a fixed and permanent location listed on their license”
I buy and sell Gold and Silver bullion on Ebay all the time.No license required.