Gold-selling parties are catching on. So it's time to take along your unwanted jewellery...
A phenomenon that seems to be sweeping America has now made it over here - offering a useful opportunity to turn unwanted items into cash. The catch? Those unwanted items have to be made of gold.
Known in the US as Glitter2Green - a reference to the colour of American money - the phenomenon here goes under the name Ounces2Pounds. And the basic idea is very simple indeed.
A hostess decides to organise a Tupperware-style 'party' event. A dozen or so of her friends duly come along, bringing with them unwanted items of gold jewellery - rings from old boyfriends, gold chains they no longer wear, necklaces from former husbands, single earrings, or whatever.
One of Ounces2Pounds' representatives is also there, together with his or her kit of testing, weighing and pricing equipment. All the guests, including the hostess, can then hold up their items for evaluation, with Ounces2Pounds offering a price for each item.
There's no compulsion to actually accept the offer, but if you do accept it, you'll walk away with a cheque. The party hostess earns 10% of the total payout at the party, and receives £35 cash towards entertainment costs. There's a further 3% commission if any partygoers then host their own party.
Party attendees must bring with them some form of identification, must declare that they actually own the item in question, and sign a release of liability if Ounces2Pounds need to first extract (say) a diamond from a ring. They keep the ring; you keep the diamond.
Above board?
Is it a scam? Not in my opinion. You go along with items of jewellery that you no longer want, and you come home with money. That's not a scam in my book.
There's a tiny chance that the company might go bust between the representative writing out the cheque, and you banking it and the funds clearing, but I suspect this is a risk that I and many others would be happy to take.
I know nothing about the company's US-based parent except some very basic facts, but I have spoken to Stephen Pearson, head of the British operation. He's a former commercial director of the FA Premier League - which I've independently verified - and as far as I can tell, the whole thing is above board.
Regulatory requirements are tougher in the US, it seems, and if there had been anything dodgy going on, I suspect the authorities would have long since clamped down. That said, they didn't discover Bernard Madoff until it was too late, and seem to have been equally lax in other high profile cases - such as cricket enthusiast Sir Allen Stanford.
Good value?
But are you getting the best possible price for your gold? And how will you know?
What you are getting is a classic 'market' price: you're getting what someone is prepared to pay for it, there and then, based on gold's 'spot' value that day. And without the hassle of touting it round pawnbrokers, jewellers, or eBay. Gold prices are now relatively high, too - so you'll certainly get more than you would have done a couple of years back.
According to Ounces2Pounds, it pays two to three times more than the average pawn broker for what it buys at the parties - but I've no way of verifying that. All the gold that is bought by Ounces2Pounds is melted down for re-sale.
Nothing to lose
Ounces2Pounds has been going since March, and is growing rapidly.
Clearly, the present downturn provides fertile ground for Ounces2Pounds to get established. There's something in it for party hostesses as well as partygoers, and in these times, many people will find that very welcome.
So there's a good chance that you might soon get an invite to one of these parties. You might not get the best possible price for your unwanted gold, but you'll certainly get a price. And for doing little more than turning up at a friend's house.
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