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Gold Parties
We were recently asked what we thought of gold parties in view of the recent spate of them for scrap gold. It's Multi Level Marketing, which never creates an efficient market, but read more...

Multi Level Marketing & Gold Parties
We can see advantages in distribution through social networking such as parties. Groups of friends who are familiar with each others styles and tastes can get together with suitable suppliers to share experiences and product demonstrations. The host or hostess usually gets a commission on goods sold. Manufacturers can use social networking events as low cost marketing routes. One problem is that any one host can probably only host one similar event per annum, so the suppliers need to recruit one or two new hosts at each party. There are other problems such as a limited product range, security, after sales service, timing. The fact that party selling only accounts for a tiny proportion of consumer goods sold reflects that fact that it is not a particularly efficient or effective marketing channel. Perhaps the over-riding factor limiting party sales is the potential erosion of trust within friendships that can be placed under strain whenever a host makes money from their friends.
A scrap gold buying party is only market distribution in reverse, a meeting place where buyers and sellers of a particular item can get together. If a host can guarantee sellers a better price than the competition, then there is a case for scrap gold parties.

Charity Parties
Rather than the host get a commission, there may be more motivation for sellers if a named charity or selection of charities were to gain from the transactions, either a commission or a complete or partial donation. This would remove the trust erosion objection mentioned above.

Jewellery Party Types
In addition to the recent growth of scrap gold parties, this channel has been used to distribute jewellery. Costume and fashion jewellery is probably best suited to party selling, because it's relatively inexpensive, and because of the more affordable price levels compared with "fine jewellery", is more often impulse-purchased. It can also be tied in with fashion events. We have also seen silver jewellery marketed via parties, and once again low cost helps. There are usually larger profit margins on lower priced goods, and buyers are not as price or value conscious, which helps to fund reward for the host.

Scrap Gold Parties
Three factors seem to have helped to spawn the recent spate of scrap gold party companies. The first is the continued upward trend of gold bullion prices, second is the world financial or credit crisis, and the third is the public awareness created by heavy cash4gold advertising on popular media such as television.
Our basic view on advertising is that most of it is very inefficient, being expensive and unfocused. Also most popular advertising seems to be aimed at the lower intelligence section of the population. Sensible people would probably search on Google.
Even though most sellers would probably happily accept a cheque or bank transfer, any scrap gold buyer is likely to have to bring substantial cash to parties, which creates a security risk. Leaving parties with a bagful of gold scrap adds to the risk.
Many sellers may not want their friends to know what they are selling, which may include previously cherished gifts or family heirlooms. Timing is another problem in that the scrap jewellery party not not coincide with having a broken chain to sell, or Aunty's inheritance.

Fair and Competitive Prices
Our buying prices for gold coins, bars and scrap are fair and competitive, but depend and change based on underlying gold prices, and other market conditions such as supply and demand.

International Buyers
We also frequently buy gold coins from many other countries. There is no import duty or tax on entry to the UK for most gold coins or bars.

Beware the £1 Billion Scrap Gold Buying Rip Off
Don't let yourself get ripped off by upstart cowboy gold buyers offering insultingly low prices for scrap gold. Other Misleading Gold Adverts
There are lots of them around!

Sending Gold Scrap by Post
You are welcome to visit our showroom to sell scrap, but it's also very easy to sell to us using the post. We have a page of advice about sending gold coins and scrap by post.

We Buy Scrap Gold
You may also wish to look at our scrap gold page.

Gold Selling Form
You may wish to print out our form to help make it easy for you to list goods you are posting to us for sale or offer.

We Buy Gold Coins

We Buy Krugerrands

We Buy Gold Sovereigns

We Buy Gold Bars

Pile Of Scrap Gold
Pile Of Scrap Gold


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