Frequently Asked Questions
We have, over the years, had the pleasure of dealing with hundreds of customers, and while each one was different and often interesting, there are a number of common queries which we gladly explain below.
Q - How do you determine the value of my jewellery on offer?
A - We have accurate, fairly simple and totally reliable methods of determining the gold or silver content of each item of jewellery or silverware presented. Once we know the purity of the metal, (gold is measured in carats while silver as a percentage) we then weigh the item and multiply that by the price we pay for its respective purity. The end result is the price we offer according to its calculated value.
Q - How do I know your offer will be a fair one?
A - First of all, we have our reputation at stake to conduct fair, honest and ethical business.
Secondly, we as GoldEx Knysna will match or better any written genuine offer from another licensed gold and silver trader, our Terms and Conditions of Purchase apply.
Thirdly, it’s our business to buy from each customer what is offered to us. We want to succeed in this business by ensuring our prices are fair and competitive so that each customer leaves our premises feeling more than satisfied and will come back again.
Q - Why do your prices offered on gold jewellery and diamonds not match a valuation certificate from a jeweller?
A - Jewellers quote the retail replacement cost including VAT of a piece of jewellery which is what it will sell for new. Jeweller’s price includes:
□ His mark-up, as in his profit.
□ His expertise for manufacturing the piece of jewellery which is a professional skill.
□ His time to manufacture which in many cases equates to days of painstaking, fine, exact work.
□ GoldEx Knysna will quote and pay for the actual metal value of the piece of jewellery as determined by its purity, weight and the international Spot Price of gold, platinum or silver, less our profit which is not a lot. As per diamonds, we sell the diamonds we have bought, to diamond wholesalers who are very picky and critical about what they buy and how much they pay in relation to the internationally accepted Rapaport Price Schedule. The wholesaler in turn sells these diamonds to the jewellers who insert diamonds into various pieces of jewellery and then sell such back to the public. Obviously, each time a diamond changes hands, there is a profit made which, after 3 or 4 changes, amounts to a big difference in price.
Q - Are Krugerrands a good investment when compared with the money market, shares or other assets?
A - This is quite a big subject which often leads to an hour or more of discussion due to the many variables, hopes, and opinions involved. Nevertheless, we at GoldEx Knysna believe Krugerrands offer a higher return than what can be achieved from the money market, shares, or fixed assets, with a few unusual exceptions. Gold prices
stabilized in US Dollar terms, in December 2015 and have remained fairly stable since. The devaluing Rand however causes the erosion of fixed asset values and returns on shares in real monetary terms. On average, we have devalued by 14% per Anum against the US Dollar over the past five years.
Investing in Krugerrands offers you other advantages, namely:
□ They are easily redeemed for cash at major banks around the world because they are an international currency just, as the US$ or UK£.
□ They are relatively light compared to their value.
□ They are linked to the world Spot Gold Price set daily in US$ which is still the world’s number 1 currency.
□ The Rand’s performance against the US$ over the past five years equates to an annual average devaluation of 14% which does not apply to Krugerrands, as it would with shares and the local money market.
Ideally, you should invest in Krugerrands for a minimum of two years, but preferably for five years and longer, to offset the difference between their purchase and selling prices.
Q - Why must I make available my I.D., passport or drivers license when selling my valuables to GoldEx Knysna?
A - This is in accordance with the law as stipulated in the Second Hand Goods Act N˚.6 of 2009. The main reason being that should SAPS have any suspicion on a purchase made due to the person concerned or jewellery itself, then they will have means of contacting the seller. Only the SAPS have access to our purchase records.
Q - Does GoldEx Knysna resell the jewellery they buy?
A - No we don’t, with very few exceptions. The reasons are:
□ Very few people are interested in buying second hand, worn jewellery.
□ Jewellery is a fashionable adornment, i.e. yester-year’s designs do not have much appeal today.
Q - Do you buy raw gold, like gold nuggets or panned gold?
A - No we don’t. Raw gold is a controlled and highly regulated precious metal. You need a miner’s license to mine, pan or prospect for gold and such gold must be sold to registered buyers and refiners like Rand Gold, South Africa’s biggest gold refiners. We at GoldEx Knysna only buy gold in the form of jewellery, coins and gold products, like gold watches and cigarette cases.
Q - Do you buy raw, uncut diamonds?
A - No we don’t. Similar to raw gold, uncut diamonds are strictly controlled and regulated by the government. Gold Trader Knysna buys cut and polished diamonds with or without a certificate and may either be set in jewelry or loose. Unfortunately, the diamond market has over the past 20 years, been flooded by diamond producing countries that do not comply with the Kimberley Process. This has caused a significant slump in prices and demand. Diamond dealers are now particularly selective on what they buy which has further impacted prices.
Q - Do you buy rubies, sapphires, or emeralds?
A - Generally speaking, we don’t. The main reason being second hand ‘colored stones’ of this sort are very often worn and cracked due to their frequent use in rings and pendants, which greatly reduces their value and appeal. We only buy diamonds because they are the hardest thing known to man, they do not wear or get scratched and hardly ever crack.
Further to that, there are a lot of synthetic colored ‘stones’ in the market, which is hard to identify as fakes.
Q - My gold ring is stamped “9ct”. Why is it not gold?
A - Sometimes we are offered jewellery, mainly rings and bangles, which are stamped “9ct” or “14ct” but when tested, are actually brass. Unfortunately fraudsters have made brass rings and bangles which look like gold and have stamped them “9ct” or “14ct”, but they are in fact only brass. A set of carat stamps can be bought for as little as R300, so it does not take much to stamp brass jewellery and sell it as gold.
Q - My silver necklace is stamped “925”. Why is not sterling silver?
A - The “925” stamp on silver jewelry is the normally accepted hallmark of sterling silver which is 92.5% pure silver, just like an item stamped “800” should be 80% pure silver. Unfortunately, similar to gold, some metal alloys like puter, or nickel mixes, have been fraudulently stamped “925” or “sterling” or “silver”, but it’s not.
At Gold Trader Knysna we have very definite and accurate methods of determining what is silver and what is not. We do not buy what is not mostly silver.
Q - I do not want to bring my jewellery and Krugerrands to town. How else can I sell them to you?
A - This is not a problem. If you give us a call, we will arrange an appointment with you to meet you at your home or other private place where we can check, quote and hopefully purchase your valuables, either for cash or by transfer, done there and then.
Q - Should I sell my jewelry now, or give it to my daughters?
A - That’s a personal decision, but from our perspective, much depends on the condition and age of your jewelry. For instance old, worn rings, bracelets and bangles may not be fashionable today.
Something worth considering is cashing in on your old gold jewelry and then use that money to buy Krugerrands for your sons and daughters. These coins will always increase in value and offer a safe form of savings and investment. You also need to consider your own cash requirements.
Q - What should I do to keep my jewelry and Krugerrands safe and minimize potential loss?
A - This is an important and lengthy subject but I will keep my recommendations brief:
- Lock away your jewelry at night. Make this a habit just as you would lock your front door!
- Only wear bold and expensive jewelry to private functions where you feel safe.
- Do not deal with old gold buyers off the street. Chances are they are not licensed and will target your house once they know what you have inside if you have not already sold it to them.
- Take photos of your jewelry and make prints of such. Keep these photo’s in a safe place and write important information on the back of them which will help identify them should they get stolen or lost.
- You may consider having your own safety deposit box at your bank which minimizes the risk of hold up at your house.
- Be careful who may over-hear your ‘private’ conversation about your valuables and how you plan on disposing of them.
- Your safe is as secure as where the key is kept.
If you are not wearing your jewelry or you feel at risk when wearing it, give it away or sell it. Virtually every week we get a tearful lady coming in asking if we have seen certain pieces of jewelry being offered to us which was hers. Unfortunately, or fortunately, depending on how you look at it, thieves very seldom come to us offering stolen jewelry because they know we get them arrested. My point is, theft of jewelry is as common as theft of cell phones and laptops. Please take care and avoid the loss