As number of events to cash in chains, bracelets grows, some warn sellers about shady appraisers.
Christina Stolarz / The Detroit News
ROYAL OAK — Bridget McElroy never gave much thought to the gold in the bottom of her jewelry box.
The 55-year-old Royal Oak resident had long since forgotten about the so-called “junk” — old chains, a bracelet, a broken necklace clasp, a lone earring with mismatched backing.
Then she heard about a new kind of trendy house party where people sell gold jewelry on the spot for cash. Intrigued by the concept, McElroy searched her jewelry box for “anything that was gold color.”
The effort paid off. McElroy took in $110 from two gold pieces and a $486 commission from the buyer for hosting a gold party attended by 18 people bearing loot.
“That was a surprise, because those are things just sitting in your jewelry box,” she said. “If you get in the mood to start cleaning, those are the things you throw out. It’s money they didn’t even know they had.”
As the rush on gold continues — it’s under $900 an ounce — in-home, private gold parties grow in popularity, replacing the Tupperware, candle and purse theme-events that were once all the rage.
Jewelry appraisers are stationed in living and dining rooms to weigh the gold pieces, test the karat, determine a purchase price — based on the market — and hand out cash.
The worn, broken and forgotten pieces are netting owners upwards of $100 — and in some cases more than $1,000 — that they’re putting toward bills or fun purchases like plasma televisions and more stylish jewelry. Even churches and schools are planning gold parties as fundraisers because the party host typically receives a 10 percent commission on money that is doled out.
Carolyn Wemple, 69, decided to deposit the $139 she collected at a gold party into her savings account.
“It was free money. It was fun,” said Wemple, who lives in Oakland County. “I had a lot of junk. Rather than throw it away I thought I might get some money.”
And, many say that quick cash fulfills a need in Michigan, where people struggle to fill the gas tank or make mortgage payments.
An Oakland County jewelry appraiser who works in-home parties said he’s surprised how desperate people are for easy cash.
“You wouldn’t believe how appreciative they are, because they don’t have any money,” said the appraiser, who didn’t want to be identified for security reasons. “It’s kind of hard to imagine that $87 is that important in someone’s life, but if you don’t have any money, it is.”
Appraising at private parties requires safety precautions because of the amount of cash involved, sometimes upwards of $5,000 per party, he said. He brings two co-workers to in-home parties, which typically draw 10-20 people who all know the party host through various social circles.
Some jewelers are wary of the home-party trend because they say unscrupulous appraisers can rip people off. Local jewelry stores, such as Armando & Sons Jewelry in St. Clair Shores, have been competing with the trend by advertising their own in-store “gold party” events, complete with appetizers.
Armando Apess Jr., president of Armando & Sons, said home-party hosts should be sure to invite reputable appraisers into their home to ensure they’re receiving the best value for their jewelry. He said it’s also helpful to know what scale they use to weigh the jewelry.
The jewelry industry deals primarily in grams, he said, but some appraisers set their scale to penny weight, which equals 1.55 grams. For example, a piece of jewelry that weighs 2 grams would only weigh 1.29 penny weight. An appraiser may advertise that they pay $15 per penny weight for 14 karat gold, which would ring up $19.35 for a 2-gram piece. A person who deals in grams would likely pay $12 per gram, which would pay out $24 for that same piece.
“People seem to think that because the dollar amount is higher, that they’re getting a better deal,” said Apess, who hosted his first gold party at his store last month. “But, when people come in they don’t know how much it weighs.”
But Judy Vigliotti wasn’t one of those people. The 70-year-old St. Clair Shores resident knew exactly how much her 14 karat gold bracelet weighed — 24 grams — when she took it to a party earlier this year. So when the appraiser offered her only $155 at $10 a gram, she knew something was off and decided not to sell.
“I had the original bill of sale. I should have gotten $240,” she said. “They had done something to their scales. They were doing that to anybody at the party. He just robbed them.”
Vigliotti said it may be comforting to partygoers to attend a gold party with a jeweler. But, after her experience, she’s done. Instead, she only turns her jewelry in to reputable jewelry stores.
“When you’re in business, you have to work on your reputation,” Vigliotti said. “Honesty is a big part of your reputation.”
However, McElroy said she was confident in the appraiser at the party she hosted in February.
“I didn’t think I had to worry about it,” she said. “They don’t force you into it. We had some jewelry that they said we shouldn’t sell.
“They said ‘we’d be robbing you.’?”
Source: http://detnews.com/
