THE GOLD PARTY SCAMS HOW THEY DO IT 4-29-2008
THE PURPOSE OF THIS LETTER IS TO EXPLAIN WITH
NUMBERS HOW YOU CAN BE CHEATED AT THESE
GOLD PARTIES WHICH ARE GOING ON
AT HOMES, RELIGIOUS PLACES, SCHOOLS.
FIRST LET’S AGREE ON ONE SIMPLE THING “ NO
BODY DOES BUSINESS TO LOSE”.
I WILL START WITH SIMPLE NUMERICAL VALUES.
1- ONE TROY OUNCE = 31.103 GRAMS
2- 1 DWT = 1.5551 GRAMS ( THIS IS KNOWN ALSO AS
PENNY WEIGHT )
3- PURE GOLD IS 24 KARAT OR 999.9 PURITY.
4- 21 KARAT GOLD IS 0.875 PURE OR 21/24= 0.875
5- 18 KARAT GOLD IS 0.750 PURE OR 18/24= 0.750
6- 14 KARAT GOLD IS 0.585 PURE OR 14/24= 0.585
7- 10 KARAT GOLD IS 0.417 PURE OR 10/24= 0.417
THE DAILY PRICE OF GOLD WE
SEE ON THE NEWS EVERY DAY IS FOR ONE TROY OUNCE
. IF YOU DIVIDE THAT PRICE BY 31.103 GRAMS YOU
WILL FIND THE PRICE BY ONE GRAM OF 24 KT GOLD.
FOR EXAMPLE :TODAY’S PRICE $880 PER OUNCE
DIVIDE BY 31.103, THIS GIVES 880/31.103=$28.29 A
GRAM
FOR 21KT , THE PRICE IS $28.29X 0.875=$24.75 A
GRAM.
FOR 18KT , THE PRICE IS $28.29X0.750 =$21.21 A
GRAM
FOR 14KT , THE PRICE IS $28.29X.585 =$16.54 A
GRAM
FOR 10KT , THE PRICE IS $28.29X.417 =$11.79 A
GRAM
SOME OF THE GOLD COMES WITH CUBIC ZIRCON OR
OTHER SYNTHETIC STONES, AND SOME ARE NOT
EXACTLY ACCURATE IN KARAT. AFTER MELTING WHAT WE
BUY WE NORMALLY LOSE FEW GRAMS ,
AND 0.5 POINT IN KARAT WEIGHT.
WHEN WE SELL THE SCRAP GOLD ,
WE GET 93% OF THE DAILY PRICE OF GOLD AT THE
TIME OF SALE,
SIMPLY BECAUSE THE REFINERY WANTS TO MAKE SOME
PERCENTAGE .
NOW, WE WILL SHOW IN NUMBERS HOW PEOPLE GET
CHEATED !!
IF WE TAKE ONE GRAM OF 21KT AND SELL IT AT
TODAY’S PRICE…
$24.75 X93/100=$23.01 PER GRAM
TODAY WE PAY OUR CUSTOMERS $19.50 PER GRAM.
THE PROFIT PER GRAM IS : $23.01- $19.5=$3.51.
WE HAVE TO PAY TAXES AT THE END OF THE YEAR ON
ALL OF OUR PROFITS.
THE PROFIT PERCENTAGE PER
GRAM=3.51/23.01=0.152 OR 15.2%
HERE IS THE SCAM………… IF THOSE PEOPLE
SPONSORING THE PARTIES AND PAY WITH CASH, PAY
10% COMMISSION TO THE HOST AND 5% TO THE PERSON
REFERRING THE HOST TO THESE PEOPLE, AND TO PAY
THEIR EMPLOYEES WHOM ARE DOING THE ACTUAL BUYING
THE NUMBERS WILL SHOW
A DEFINITE LOSS EVERY TIME EVERY PARTY, THIS IS
IMPOSSIBLE………
IN ORDER TO MAKE A PROFIT THESE PEOPLE MUST
CHEAT ON THE WEIGHT, THEY BUY YOUR GOLD BY DWT
OR PENNY WEIGHT WHICH IS EQUAL TO 1.555 GRAMS,
THEY PAY YOU FOR 1 GRAM (ONE GRAM),
THIS MEANS THEY CHEATED YOU OUT OF ALMOST 1/3 OF
YOUR MONEY.
THE SECOND WAY IS TO CHEAT ON THE
KARAT, BY TELLING YOU THAT YOUR GOLD IS
LESS KARAT THEN IT ACTUALLY IS, SOME OF THE
PEOPLE WHOM ALREADY WENT TO THESE PARTIES WILL
HAVE TOLD US THAT THIS HAS BEEN DONE TO THEM
INCLUDING MY OWN DAUGHTER.
THE THIRD WAY IS TO PUT ALL THE DIFFERENT
KARATS TOGETHER ON THE SCALE AND PAY YOU FOR
LOWER KARAT PRICE.
THE FOURTH WAY IS TO OFFER YOU AN AMOUNT OF
CASH FOR YOUR GOLD LOWER THEN ACTUAL VALUE AND
SEE IF YOU WILL ACCEPT IT.
THE FIFTH WAY IS TO CONVINCE YOU THAT THE
KARAT STAMPED ON YOU GOLD IS NOT CORRECT,
BECAUSE OTHER COUNTRIES MAY HAVE A STAMP ON THE
YOUR GOLD THAT YOU DO NOT UNDERSTAND, HE CAN
THEN TELL YOU THAT YOUR GOLD IS NOT THE KARAT
YOU THOUGHT IT WAS.
ONE OF THESE GOLD COLLECTORS WHO IS CALLING
HIMSELF
( REFINER) DOES NOT HAVE EVEN AN ACTUAL ADDRESS
FOR HIS REFINERY,AND DOES NOT REFINE ANYTHING,
HE SELLS $500,000.00/WEEK TO THE SAME REFINERY
WHERE WE SELL OUR GOLD, WE RECEIVE 93% FOR OUR
SCRAP, HE RECEIVES
92% FOR HIS GOLD BECAUSE HE WANTS CASH FOR HIS
GOLD.
FINALLY, WE LIVE IN THE COMMUNITY THAT WE ARE
DOING BUSINESS IN JEWELERS, WE ARE LIKE LOTS OF
HONEST JEWELERS IN YOUR
COMMUNITY,WE SUPPORT LOCAL SCHOOLS, LOCAL
RELIGIOUS AND NON PROFIT ORGANIZATIONS, WE ARE
HERE TO STAY, NOT TO CHEAT, AND RUN WE PAY OUR
TAXES LIKE ALL OF YOU DO.
MY ADVISE TO ALL CUSTOMERS, BEFORE YOU
SELL YOUR GOLD AT THESE PARTIES, WEIGH
YOU GOLD AT YOU JEWELER, DIVIDE YOUR GOLD INTO
BAGS ACCORDING TO KARAT WEIGHT, AND ASK FOR
THEIR PRICES , THEN COMPARE BETWEEN THE TWO.
