Tips for Selling Your Gold

Written by Mary Welch Thursday, August 26 2010

Snapshot: Deanna Brown
In 2008, Deanna Brown founded Golden Girls with two of her friends. Golden Girls buys precious metals at home-based parties. Brown’s vision for Golden Girls today retains many of the same tenets it did at the company’s inception: namely, to do good with gold. Golden Girls operates in 19 markets across the United States and Canada.

A mom, a wife, and a small business owner, Brown attended Virginia Tech where she met her husband, Chris. They were married shortly after graduating and have been together now for 20 years. They have three daughters.

Womenetics: Why did you start Golden Girls?
Deanna Brown: We wanted to help others. Yes, there was certainly an aspect of doing something for ourselves – but our desire was to create something that was empowering and enriching. What started as a small, manageable business – buying gold from our friends and neighbors – quickly expanded. Over time, our mission became threefold. First, we provide women with a trusted, safe solution to sell an item of value. Second, we provide women with a flexible income-generating opportunity that doesn’t compromise the existing demands of their life. And last, we give back by supporting deserving charities and organizations in local communities throughout North America. We have created a next-generation, socially responsible company.

Womenetics: Why did you add a charity element?
Brown: My business partners and I felt strongly that it was important to give back to our communities. So from the beginning, even though we had no idea of our company’s potential growth, we made the decision to give a percentage of the proceeds of each party to a charitable organization. We’ve never regretted that decision. And in fact, in just two years, we donated over $500,000 to more than 1,300 charities across North America.

Womenetics: Who works for you?
Brown: Golden Girls employs approximately 20 full- and part-time employees in two offices, Atlanta, and Fort Myers, Fla. Our team supports more than 250 independent representatives located in 32 States and Canada.

Womenetics: Who attends these parties?
Brown: Our guests are typically women seeking an opportunity to reward themselves. A party is a girls’ night out. It is a trusted solution to sell something of value. And it is an opportunity to support a local cause.

Our guests come to a Golden Girls party because they know they can trust our solution. In some cases, our guests are significantly affected by the economy, and we provide an empathetic, discreet solution. In other cases, our guests leverage our fundraising platform to raise money and awareness for a local charity or organization. In all cases, our guests are women – often overworked and under-appreciated – who gain a little extra cash to support their families or themselves.

Womenetics: Do people really get a fair market value for their jewelry?
Brown: Golden Girls is committed to providing the greatest value for our guests. In fact, we have a department dedicated to assessing our competitors’ pricing and buying experience. Our research ensures that our prices are consistent within each geographic market and consistent across all competitors (home party gold buyers, pawn shops, jewelry stores, etc.)

Our prices change daily to reflect the fluctuations in the gold market. We don’t negotiate with our guests, but instead suggest that they seek multiple appraisals to ensure that they get the greatest value for their precious metal.

Womenetics: Do you think this business will still do well when the economy picks up?
Brown: The business of buying and selling gold has been around for hundreds of years and will continue with markets like China and India becoming more aggressive in the global markets. While our business is strong, it is also scalable. This allows us to build upon our corporate mission regardless of economic conditions, fluctuations in gold prices, or consumer demand.

Womenetics: What were the problems taking the business outside Atlanta?
Brown: I live in Atlanta, and my two business partners are based in Michigan and Florida. Therefore, Golden Girls was launched in three areas simultaneously. We had to quickly adapt to the economic, social, and legal nuances of each market. While this was challenging, it provided us the knowledge and experience to understand how to enter a new market and operate therein. This resulted in an operating structure consisting of regional managers and local team managers supported by a dedicated staff of licensing, compliance, and operational personnel.

Womenetics: What happens to the jewelry after you buy it?
Brown: The gold is sent to our processing center in Fort Myers and then sold to one of our partner refineries. The refineries in turn melt the gold and recycle it for use in future jewelry, coins, and other items. It is the ultimate recycling program.

Womenetics: much does a hostess make for a party?
Brown: A hostess makes 10 percent of the party proceeds and can make up to $50 for each party she refers.

Womenetics: What should a seller be aware of when selling jewelry?
Brown: The most important advice I can give to anyone looking to sell unwanted jewelry is to do her homework. Consumers are inundated with businesses seeking to purchase gold jewelry, but it’s important to select a buyer who makes you feel comfortable. If a buyer ever makes you feel uneasy, hold onto your pieces and get a second (or third) opinion. Here are some tips:

1. Select a reputable buyer. Sell only to a buyer or company who offers standard pricing per ounce.
2. Observe. Be sure the buyer weighs and evaluates gold in front of you. Don’t let the buyer mix different karats when weighing because pricing differs for each.
3. Take charge. With so many options, it is now possible to sell in a no-pressure environment. If you’re not comfortable or feel pressured at all, ask for your gold to be returned and select another buyer.
4. Ask for recommendations. With the current popularity of gold buyers, it is very likely that someone you trust can offer a source.
5. Know what to sell. The ideal jewelry to sell to a gold-buying company includes pieces that no longer hold value as jewelry, for example – mismatched earrings, broken necklaces, or out-of-date styles.
6. Understand pricing guidelines. The “market price” of gold refers to the price of refined, certified 24-karat gold, which is sold in 400-ounce gold bars known as good delivery bars. This price is only available to someone with a good delivery bar who has access to markets such as the London Bullion Market Association. The majority of consumer jewelry (often referred to as “scrap”) is not pure gold. For example, 14-karat gold is only 58.3 percent gold, and 10-karat gold is only 41.3 percent gold. So, 14-karat gold is, at most, worth only 58.3 percent of market price.
7. Be smart. All that glitters isn’t gold. Plated jewelry has no scrap value.

For most people, every piece of jewelry has a story. While a piece might fit an immediate need, selling gold doesn’t need to be a cold experience. Have some fun.

Mary Welch is a freelance writer for the Atlanta Journal Constitution, Dawson Times, Plan Your Meeting magazine, and Atlanta Business magazine. Previously, she held many positions with Leader Publishing, including editor-in-chief of Atlanta Woman, editor of Business to Business magazine, and editor of Catalyst magazine. As editor of Business to Business, she assigned, edited, and conceptualized a series that was awarded Silver in the 2005 GAMMA Awards for Best Series. Welch was a reporter for the Atlanta Business Chronicle for eight years and freelanced for publications including Glamour, Advertising Age, South, Georgia Trend, and Oz. From 2000 to 2003, she served as vice president of media relations for Bank of America, during which time she authored Forever Green: A History and Hope of the American Forest with Rolling Stones keyboardist Chuck Leavell.