Episode Transcript
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(00:37):
Welcome back to the What Sold podcast.
My name is Brandon, oneof the hosts of the show.
And we are excited through themiracle of modern editing to bring
you part two of the what's old goldepisode that we started last week.
Hope you enjoy it.
We will pick up where we left off.
So on with the show lastweek, we talked about.
(00:59):
Gold, there's gold in them, notour hills, Matt silver and gold.
And one of the things that struck me aswe were talking, that we didn't really
touch on, you touched on a little bit,but was the idea of, so you've got gold
pieces and you collect them in a box orbag or whatever, then you take them and
sell them and that's a great way to do it.
When should we keep it and, sellit as an individual piece or when
(01:23):
should we try to part it out as gold?
Yeah, that's a great question.
And again, what I'm going to sayis not the definitive, right?
This is not a black and white world.
This is just what I am doing right now.
And this is based on my needs and things.
We are at a time in case you didn't tuneinto the last episode where gold and
(01:43):
several of the precious metals are at alltime highs and, or at least the highest
it's been in the last 20 years, somethingwith relation to costs of things.
And.
The value of gold per ounce has goneup over 2000% in the last 20 years.
So to give you an idea, in 2005,gold, the average sale price or
(02:06):
value of an ounce of gold was $445.
Now, to give you an idea that's roughlyworth about 780 some dollars in today's
money if you account for inflation.
If I put.
400 and some dollars or if itincreased based on inflation rate, it
would be worth 700 and some dollars.
However, one ounce of gold today.
(02:28):
And I haven't checked the price todayif it's up or down, but it's somewhere
around 30 to 50 or something like that.
Wow.
3, 250. So if you bought.
20 ounces of gold in 2005 at400 and some dollars a piece.
And then you sold that gold.
Now you would have made over ahundred thousand dollars in profit.
(02:51):
And it's crazy.
It has way outpaced the averageannual income that a person makes.
It has way outpaced inflation.
And the downside of the trajectorywe've been on is that we're not
valuing as a culture, as a people,we're not valuing people's work.
Like we did in yesteryear, and that isreflected in the sense that the average
(03:14):
income of a household, a person's earningshas only gone up about 16% in the last 20
years, but inflation has gone up over 55%.
So when it feels like things costmore today, it's because they do,
it's because our buying power ismuch less than it was in the past.
(03:34):
Whenever I say that gold has gone upover 2, 000%, iridium has gone up over
4, 000%, silver has gone up over 1, 000percent in value in 20 years, it shows
that we value items, raw materials,and things more than we value work.
I say all this to say, Perhaps,gold's going to drop back down.
(03:55):
I don't know, but I will tell you thatI've been watching some interesting
things, and this is not a, this isnot an investing podcast, but you
should know, if you don't know thatthe United States and the world bank,
that would be the bank of London,the IMF international monetary fund.
And whatever, Bank of London,all those, World Bank, have been
(04:16):
buying up record amounts of goldin the last year, particularly
since the beginning of the year.
The United States is number onein gold holdings in the world.
We have somewhere around8, over 8, 000 tons.
Of gold, we've purchased over 600 tonsof gold since the beginning of January,
which represents something like 13 or14 percent of our existing holdings at
(04:37):
the time and the World Bank and theseWorld Banks are also buying a lot.
They're doing that.
It is thought because of all of theuncertainty with global markets.
And they want to hedge if things go down,those who have the gold historically
throughout time are the ones that standto be shielded from the downsides of that
(04:59):
and also have the most opportunity to buyin to these other markets like political
systems or currencies, fiat currencies.
And so all that to say, goldis really high right now.
If you have gold, you have.
You have multiple options.
Congratulations.
You can have gold bullion or jewelry.
And in some cases, it maymake sense to hold on to that.
(05:21):
It may make sense to hold on to a pieceof jewelry if it is unique, if it is
very old and in good condition, or ifit incorporates valuable gemstones.
So for me, I work for myself, right?
I don't have a 401k.
I don't have a pension coming.
I don't work for thestate or the government.
If I want to have money tohelp myself survive when I'm no
(05:43):
longer able to work someday, Ihave to think of ways to invest.
I can invest in the stock market,but they also say, hey don't, Do
that exclusively like you don'tput your eggs on one basket.
They always say diversify because I'min the businesses that I'm in and I
get to see all kinds of interestingthings that pass through my hands.
Antiques and collectibles.
I personally hold on to some art.
(06:04):
I hold on to some jewelry.
I hold on to some collectible items.
I've got some sports cards andthings, and it stands to reason that
those things will be more valuable.
Maybe just a little bit more, butmaybe a lot more in 20, 30 years.
So I hold onto some things likejewelry some pieces of jewelry that
already have gone up quite a bitin value since they were produced.
(06:24):
And I'm looking at the trendsof that particular gemstone,
Sapphire, Emerald, or whatever.
And I think.
This is worth more than justthe gold weight, to somebody.
And I even can see today this isselling for a lot more than I paid for it.
It seems like this hasgone up quite a bit.
You can get on gemstone websitesthat will tell you the increase in
value per carat of stones over time.
(06:44):
And or what type of gemstone seems tobe the fad that year, whatever else.
But if you have a piece ofjewelry that say is broken,
it wouldn't be easily fixed.
It's lost the gemstones.
The gemstones in it aren't that valuable.
It's really common.
You get on and you're like, whatabout this, particular bracelet
or ring and you see that there are158, 000 of that item available.
(07:07):
Like, okay, well, if anybody wants it,they can get it any number of places.
They don't have to get it from me.
The only way I'll sell this is if I sellit for less than other people are willing
to sell it for, so they'll buy mine.
And it may not make sense.
For items like that,broken, damaged, not unique.
I will put those together and I willsell them as I mentioned in the last
episode to a gold buyer that will buy itat a really high rate or to a refinery
(07:30):
that will give me a really high rate.
But for something that is a saya diamond ring that has a carat
size diamond or higher, that'sprobably an investment piece.
And or that's a piece thatyou should sell as it is.
And you should expect to get morethan the gold value for that.
Because.
It has more value, generally speaking,if it's functional, it can be worn.
(07:53):
If it incorporates a gemstone thatpeople want, even though the diamond
industry is ridiculous, it's a racket.
It's been incrediblycorrupt since the beginning.
Thanks to beers.
We have this really ridiculous thingwhere everyone feels like they have
to have a diamond in their ring.
And so the marketing, themessaging one, and it still wins.
Yeah.
Although I am seeing a shift towardscolored gemstones, it's always
(08:15):
been an investment thing, butmore and more people wanting that.
Yeah.
As an alternative to diamonds,we bought a sapphire.
Ya.
I bought a sapphire for my wife.
It was a five carat Sapphire is beautifulbecause I didn't want to get in bed
with blood diamonds and all that.
So whatever it was not to get into thepolitics of it, but, and my wife loves it.
It's beautiful.
Diamonds are, they're more plentiful.
(08:36):
Sapphires and rubies are way morein terms of the amount or they're
way less of them than diamond.
Yeah.
And to be honest, I. If I'm goingto keep a piece for an investment,
it is likely going to be a pieceof jewelry that incorporates
primarily a Sapphire or a Ruby.
I personally love Emeralds, butEmeralds don't seem to get the
(08:56):
same value as those other two.
And, or I'm going to try to findsomething that is not one of the big four.
The big four being diamonds, emeralds,sapphires, and r and R and Rubies,
I'll get something that seems tobe trending and going on value
quite a bit, like a Mantoid Garnet.
Most of the time, garnets, you think oflike rhodolite garnets, which are red.
Or a paraiba tourmaline or apadbarasha sapphire, which is like
(09:19):
a pinkish, Orange ish color or bluezircon, or, some of these, which
are going up quite a bit in value.
Those are the kinds of thingsthat make sense to hold on
to, or to sell individually.
But those wouldn't be, like, Iwouldn't want to sell, I wouldn't
want to take, let's say, A two and ahalf carat natural heated or unheated
(09:39):
Sapphire ring and go scrap it forthe gold weight and get 500 bucks.
No, a two carat Sapphire of goodcolor, good clarity, good cut.
That is natural and not synthetic.
It bring several hundred dollars percarat, if not more just for the stone.
And if you have it in a functionalpiece of jewelry, all the better.
I think that two to two and a half carat.
(10:01):
Is about the ideal sizeto wear on a finger.
It's not so big that it looks ridiculous.
It's not so small that it seems likeyou were cheap or didn't have money.
And it fits, it just looks reallynice, but to buy a stone, that's two
carats of good quality, it's goingto cost you quite a bit of money, but
there are people out there who havethese in their safe or they inherited.
(10:23):
It's in a box in the closet.
You pull it out and you're like,Oh yeah, like this was Pat, this
was my great grandmother's ring.
Or it was even older than that.
Maybe it was back when they weren'treally making a lot of synthetic stones.
So the likelihood that it'snatural is pretty high.
Take that thing to a jewelry storeor a place and have them test it
for you because then you can know.
I have some things that I'mgoing to show you right now.
(10:44):
We're having the conversation that Ipersonally am keeping at least for the
short term, but may plan to sell, butI'm going to sell them individually.
So let me jump into it.
Two of these.
I bought yesterday and I'mgonna show these right now.
So I'm excited.
That's just why I'm excited aboutthis show Yeah, the first one is
this ring and it is a Victorian era.
(11:05):
I'm gonna hold it up a little bit here.
So people can see a Victorian ringIt's set in 14 karat rose gold and
it has quite a large oval cabochonGreen piece of jade gemstone in it.
This wouldn't be considered Imperial Jade.
Imperial Jade is usuallyreally rich saturated green
with translucent to opaque.
(11:26):
This is a medium green witha little bit of the white in
it, but still a good piece.
Any piece of jade, as long as itwas originally the stone set in
it, that is in 14 or 18 carat, istypically a pretty good gemstone.
They're not going to put a diamond,a really nice 2 carat diamond
in 10 carat gold, almost ever.
And they're not going to put a reallyugly, cheap jade stone in 18 carat gold.
(11:50):
Okay, because as the value of the metalgoes up, typically, The value or the
quality of the gemstone goes up as well.
It makes sense.
So I was at a pawn shop inHickory, North Carolina.
Oh, I was on my way back from therefinery that I sell to in Charlotte.
I sold some more gold there.
This is again, was thekind of the basic stuff.
And I get paid that day, which was nice.
(12:11):
This was at a pawn shop.
I bought a couple ofother pieces and then.
When we got up there to pay,he said, Oh yeah, this piece
you got to pay cash for it.
Why?
Oh it's in this part of thecase that actually this stuff
belongs to the previous owner.
And so we have to get that in cash.
We had just had things separate.
I'm like, okay, so I decided to comeback yesterday and this was two days ago.
(12:34):
I was like, I'm going to goback yesterday and get there.
I do think it's valuable.
And I went, I forgot how muchit was to be honest with you, I
didn't pay attention to the cost.
It ended up being 300.
300. It's a decent amount of money,but it's not like a ridiculous
amount of money for a nice ring.
The last one on eBay that sold thatlooks as close to this as you can
get sold for 3, And I paid 300.
(12:59):
So that'd be a nice return on investment.
That would be a very nice return.
So I was excited about that.
And I thought this was theonly reason I came out here.
I'm just going to get this donereal quick and then go back home,
do my fulfillment and things.
But I was in the same parking lotwith a really large antique mall.
And I hadn't been to that thingin a couple of years, the last
time or two that I'd gone.
(13:19):
It just, some places aregood for buying things.
If you like something or you wantto have it, keep it, but they're
not great for resellers like myselfbecause the prices are just too on
point and I can't stand to make money.
And those places I usually write off.
I maybe I'll go back once a year.
It had been a couple of years andI thought, well, I got the time.
I'm just going to go in here.
And I'm so glad that I did.
(13:39):
I spent about a thousand dollarsin there on various things.
I probably bought 20 to 25 items, all butone or two of those items, I know, based
on the research I did and or because I'vehad experience selling it before, I'm
going to make 2, 3, 4 times what I paid.
So I'm good there, it was a good day ofsourcing, even if that's all that I got.
(14:00):
But then I came across a ring, I'mgoing to hold it up right now, and this
ring I'm going to put it on my finger.
So you can see justhow huge this thing is.
When you look at it, it is,it sits almost an inch from my
finger up to the top of the stone.
And this is an aquamarine stone.
(14:22):
It's an Emerald cut, whichmeans it's rectangular and in a
particular cut underneath, andit's set in 14 carat yellow gold.
This is I've tested.
It is an authentic.
Piece of, it's anauthentic aquamarine stone.
It's huge.
This thing is, it is thekind of a gaudy size.
Mrs. Howell from the Gilligan'sIsland would wear that ring.
(14:43):
This is exactly right.
This is exactly right.
They wanted 600 for it.
I did some research, and the closestone to this that I could see had
just sold for 14, 000 on eBay.
That was one that was not certified.
But if I were to say to send this to GIA,the Gemological Institute of America,
the most respected gem certificationcompany, To have them test it and certify
(15:07):
it and give me the size and all that.
And tell me either what the originis or whatever else it could sell in
the 20 to 30, 000 range because theyare selling for that on eBay today.
You can look it up, look up.
Look up sold items for 14 forgold gold aquamarine ring.
Look at the top.
You'll see ones that havesold anywhere from 10, 000 to
30, 000 in the last 90 days.
(15:29):
That's just the last 90 days.
Why do you think somebody putthat into an antique mall if
it was worth that much money?
They didn't do the research?
It's simple.
They didn't know.
They didn't know that it would sell forthat much or they didn't believe it.
It only will cost me about 150 to200 to send this off to GIA to have
them certify it and their turnaroundtime is between two and three weeks.
(15:49):
So if I, the other thing is whenI went up to the front, I said,
Hey, I don't usually do this.
Prices here are fair and I knowthis is not a bargaining area, but
because this item is so expensive,sometimes it never hurts to ask.
Do they happen to have any sortof standard percentage off?
Would they be willing to whatever?
And they said they, yeah, they have a 10percent off standard, but we'll call them.
(16:10):
They text, no response, text again,no response, call, no answer.
I can't remember if they got ridof them or got ahold of them or
not, but it came back that theywould do 525 instead of 600.
So just by asking and beingnice, I saved 75 bucks.
So now after taxes and fees, Ipaid about 550, 560 for this thing.
(16:33):
This is going to be going out toGIA along with this Jade ring.
And three or four other piecesthat I have based on the value that
I think I can get from research.
I'll likely just probably sell one ortwo pieces so that will cover both my
initial investment on the pieces andalso the cost of getting them certified.
(16:54):
Then it's gravy.
I can sell it now ifI want the money fast.
Or I can put it on and just waitto get the optimal price, or I can
stick that, in the safety deposit boxor whatever, and say, if it's worth
20, 000 today, maybe this is worthdouble that when I'm ready to retire.
Okay?
You are so good at this game, dude.
(17:14):
I know I'm your partner in this crime,but it's amazing to me that a person And
do what you did and for people listeningout there, this doesn't happen every day.
We've done this show for over a yearand I've never heard Matt talk us tell
a story like this, but just the merefact that if you do your research,
if you know what you're looking at.
(17:35):
You could potentially make30, 000 on a 700 investment.
That's incredible.
At the pawn shop in your town.
Yeah.
Or nearby.
Not everybody is in the gameto buy and sell jewelry.
It is risky.
This was a risk.
I'm not going to lie.
But at 500 for a stone that'snatural of this size, there is
(17:55):
no way I was going to lose money.
Just like there was just no way rightthe gold itself probably weighs four or
five grams So at the very least if thestone was just glass if I tested it And
I had to sell the gold for just the scrapmetal i'd be making two to three hundred
dollars And I it would be a two hundreddollar loss I've forgotten it tomorrow.
(18:15):
It's not a big deal.
It's a cost to do a business.
I've lost way more than thatfrom people scamming me on eBay
that E Maid didn't support me.
Okay, . Oh, eBay.
Here you go.
Okay, last thing I want to say, andI know we're running up on time, but
I've also purchased, this is in thesame realm of gemstones, is that I've
bought and sold Items from rock andmineral collections over the years.
(18:36):
I still have a lot of specimens left.
Some of them are local, in NorthCarolina, I think naturally
occurring rocks and minerals isthe largest variety in the country.
We have the largest variety ofminerals and we have the largest
variety of mushroom types.
Huh.
There's a little triviaanswer for you there.
Oh yeah.
Interesting.
But and I've gone out myself.
(18:56):
We can talk about this.
I've mentioned it before.
I've found sapphires myself and had themcut by lapidary and put into jewelry
for people in my family for Christmas,a few years ago out west of Franklin.
But in this one mineral collectionI bought was this bag that said.
Montana sapphires, and they werereally rough cut, they were loose,
rough, they're not cut, they're justsapphires someone found on the ground.
(19:18):
Now, if you're not aware, the number onesite for blue sapphires in the country
is in Montana, it's called the YogoGulch, Y O G O. If you're curious, go to
eBay and just look up Yogo Sapphire, andlook at sold items, your jaw will drop.
For the values of these things.
Everything else that I bought in thiscollection That was labeled it all
(19:40):
panned out to be pretty accurate.
And here I have this little bag that says,between two and 300 carats of Sapphire
of uncut Sapphire, just so you know,tiny little rough specimens of a carrot
can sell for dozens, if not hundredsof dollars for a Montana Sapphire.
I'm going to pull one upright now that I have.
(20:00):
This is one of several that I have.
This is not one of thelargest ones I'm going to put.
So it just looks like a blackrock when you just look at it.
But if I put the light behind it.
You will see just how brilliant andbeautiful and blue that that sapphire is.
So I made a phone call yesterday to ajewelry store in Asheville, and I said,
Hey, I don't know if you can help me,but I'm wondering if there's anybody
(20:21):
locally or really anywhere in the countrythat you've worked with before or you
would recommend that would facet cut.
Rough gemstones.
They said, we don't really work.
We don't do that ourselves, butwhy don't you contact the gem and
mineral museum in Hendersonville?
You ever been there before?
I have been there before.
Yeah.
So I have too.
It's been a long time ago.
After I got off the phone with them, itwas about 4 45 and they closed at five.
(20:44):
So I called them really quick andI asked them the same question.
And he said, as a matter of fact,we acid cut gemstones and we give
classes on how to do that as well.
Yeah.
He's like, if you have some stuffyou want to look at, just come
by during, it was very nice.
So in the next couple of days, I'mtaking a trip to Hendersonville.
I've already tested them.
They are sapphires.
They are not synthetic sapphires.
(21:05):
I don't actually have the ability, Idon't have the microscopes required
and the training to determine how the,the striations and how these things
form to know what the origin of it is.
If I paid, if I send it to GIAand paid them, they would tell me.
But I'm going to go to this person,I'm going to say, hey, do these
look quality enough to facet cut?
And, or what would you charge to do that?
(21:26):
Meanwhile, when I send this jewelry off,I'm sending one of these pieces to GIA.
I'm going to pay them, tell me the originand that sort of thing, because everything
else in there will be exactly the same.
If it turns out that these are fromMontana, or even if they're like a
cashmere or a Burmese Sapphire orsomething, they can have good value.
Also, I have a couple of pieces thatin this, I believe is one as well.
(21:48):
Yeah.
So I'm going to hold this up again.
I'm going to show the blue.
You can see the blue.
I turn it to the side, it's goingto be hard to see because of how
bright the light is, but it actuallylooks more like a lime green color.
Oh yeah.
So depending on the direction you look atit, this is called dichroism, dichroic.
It means that it, depending on theangle, it has different colors.
(22:10):
It's not the same as a color changestone, like an alexandrite, which
in one light will look maybe moreblue and another light purple.
Or green.
This is one that has two different tones.
Kind of like a tourmaline can have twodifferent colors in the same stone.
So look up blue, green, sapphire onGoogle or on eBay and look at the
(22:31):
fast cut prices for those stones.
They can go into the thousands.
Do I have something of that value?
Fingers crossed.
I don't know, but I'm going tocheck it out and we're going to see.
And I will give you an update.
Now that I have these items and my plan,as I decide to send things off, I'll
update when I get the results back fromGIA, I'll get on and tell you what I got.
(22:52):
If these turn out to be decent qualityworth cutting, if it comes back that I
can get what my plan is to have everyone of these stones cut in as large
and as good of a cut as possible.
And I will probably invest in having abracelet or something of 18 karat gold
Produced or buy a bracelet and haveall of these mounted in one bracelet.
(23:14):
Because if you could have a hundredplus carats of good quality orange
flower, blue Sapphire set in an 18carat gold piece of jewelry, that
could be ridiculously valuable.
And again, If my investment, let's sayI sell two or three of these stones
after I cut them, that could pay meback for the investment of having
this piece of jewelry made, boom,it goes in the safety deposit box.
(23:35):
Oh, so good.
I felt like this show should beentitled investments in our future.
Or, invent things to put in the safe.
Hey, no, listen, let's back up.
Education.
Invest in the children.
And education.
That's really where, this isjust, if you have a thing.
The children are our future.
Teach them well and letthem lead the way, Matt.
That is true.
I guess the moral to the story is youcan find things like this around you.
(24:00):
Number two, if you have a pieceof jewelry that has a potentially
valuable stone, a carat or more,then consider selling it on its own.
Or consider holding on to it.
For more value later, don't sell that forscrap because it's worth more than that.
I think we might be doing our secondtwo part episode because what every
time we talk, I don't even know howwe get here, but we always get here.
(24:22):
So this is an absolute datadump today and amazing.
I am very excited to hearabout what happens with that.
Princess cut stone.
I will.
And you have been a delight as well.
Typically am a delight.
It's true.
Any last words for the goodpeople out there listening?
You guys can do this too.
(24:43):
It's not, I honestly, you may notbe doing these sort of deeper dive
types of creative things that I'mdescribing, but going out to a pawn shop.
And looking for a stone in a ring or aring, just say, Hey, can I look at that?
Great.
Hey, do you mind if I take a picture?
I just want to research.
They're not going to have anyproblem with that because they
want to sell you the item.
(25:03):
Yeah.
They're not like a thrift store thatsometimes doesn't like resellers
because they get, been out of shapeabout the idea that you might make
more money off of something than them.
Pawn shops do not care.
Give me money, whatever I can doto help you pay me for this item.
That's what they want.
So do your research, look it up online.
Have things like a littlemobile, I can show, I can hold
one up really fast and show it.
These costs like 20 bucks,20 or 30 bucks on Amazon.
(25:26):
It's what's they call a diamond tester.
It's just a little electronic thing.
You can carry it in your pocket.
We did a whole show on this way backwhen we did and this tests diamonds
But it also what it does is it has anumber scale and this is the hardness
scale one to ten Sapphires are a ninediamonds are a ten be careful because
moissanites are also a ten So you wouldwant to have them definitely verify?
(25:49):
That it's a diamond instead of becausejust because it's a ten doesn't mean
it's a diamond But if it's a nine it'sa sapphire or a ruby because those are
nines And familiarize yourself, knowwhat Jade is, know what aquamarine
hardness is, so that you test thatand it tests out at that number, then
you're, it's pretty confident that itis that it's just, you don't know maybe
if it's synthetic or natural, but.
(26:11):
Most of the time, if it lookslike the real thing, if it's not
going to be close to the hardness.
It's going to be glass.
So it's going to be like a two and youknow right away when it's not worth it.
Thank you so much for listeningto the what's old podcast.
We really appreciate you guys rememberto follow, like, and subscribe, write
a review if you get a chance, otherwisethat is all we have for you today.
We'll be back with a brandnew episode next week.
(26:32):
We look forward to beingback with you soon.