Keep ‘old and unwanted gold’ out of the pot

Monday, March 01, 2010

MOST of your readers will be aware of companies setting up collection depots weekly in hotels and community centres to buy "old and unwanted gold".

This is driven by the high price of gold and the difficult financial circumstances that people experience because of the economic downturn.

Buyers base their purchase price on the scrap value of gold and buy at a lower price ensuring themselves an attractive profit margin.

These pieces all end up in the melting pot, reformed as bullion ingots for resale to the trade.

When the price of gold is high, the jewellery trade seeks sources other than the wholesale bullion market.

While disposing of broken gold pieces of jewellery can be an attractive proposition there can also be a temptation to dispose of old and unwanted gold coins and medals as part of the same initiative. Readers should be aware that gold coins and medals (and important silver coins and medals, too) can often have a higher value to numismatists and collectors who want to study and research these pieces.

Their interest includes design and manufacture in addition to understanding the organisations that issue them and the individuals who were awarded them.

Gold medals of Irish origin are not plentiful and are important, as they are part of the social and cultural history of our nation and need to be preserved.

Consequently, if any readers are considering this line of disposal, they might be better served to contact a coins and medal auctioneer, dealer or collector/researcher where they may be surprised with a price far in excess of the melting value.

Michael Kelly
Bayside
Dublin 13

This story appeared in the printed version of the Irish Examiner Monday, March 01, 2010