Sunday, October 7, 2007

A Sure Thing - Do You Know One? Gold – Silver – Platinum

I do take risks in my buying, but it is very controlled. You know our rule: We try to buy our items at 25% of their retail value. This give us room to discount them and still make a respectable profit. Could the things we buy be worth even less than that? It is possible, but unlikely. Using this 25% rule in your buying won’t guarantee that you will never make a mistake, but it will be so seldom that your other purchases will always more than cover the mistakes and still leave you reaching your goals. I explain this further in my book that can be found at or on Amazon by searching for Daryle Lambert.

But what if you could even reduce the risk to practically zero, would that interest you?

There is a way of doing this, and I see my friends the jewelry dealers doing it ever day. They almost always have a risk-free transaction when they buy.
How is this possible you may ask? It is very simple. They use the market price of the material that the item that they are buying is made of, as a measure, to price their purchases. If I buy a bracelet that has one ounce of 18 carat gold in it, I can access the gold value by using a formula to estimate its value compared to it being pure gold. What do I mean by that? Quite simply, if an ounce of 24 carat gold is worth $650, then an ounce of 18 carat gold would be some fraction of that. This would also hold true for 14 and 10 carat gold.

You can figure the value of all metals by calculating their market price by the weigh of the piece you are buying. This standard will hold true for silver, gold, platinum or any other metal.

So, once you know the value of the metal by weight in the piece you are buying, the rest is easy. Let’s say I buy a ring that has a half ounce of 24 carat gold in it and the price of gold is $650 an ounce, then the value of the ring is $325.00. This does include the value for its design or any stones that it might contain. So if my purchase is $150, I have made $175 plus the other values the ring might have due to its design or stones, even if I just sell the piece at the market metal price..
To be a jewelry dealer, you must carry a small gold scale with you to weigh each item. There must be a discount for any other material in the piece, but often the things like stones can be worth more than the metal.

My friend Warner once called me about a gold bracelet watch that he was looking to buy. It had hallmarks that indicated that it was 18 carat gold and was a french piece. After buying it for $200, through research our estimate for its value was $5,000.00. Not bad for a days work.

You should keep this in mind, but be sure to do your home work before going out to buy jewelry.

Be sure to visit our web site for more information about how you can join the 31 Club and start your own race to your millions! Read more about it here!"The Guy in the Red Tie" --- Daryle Lambert

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