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  • » Scrap Gold Buyback Prices - Dropping?

#1 2016-12-12 19:54:06

goldenspike
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From: Victoria, Australia
Registered: 2016-08-10
Posts: 29
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Scrap Gold Buyback Prices - Dropping?

I havent sold any scrap gold for a while and went to see the prices at the usual gold buying houses.  Some used to buyback at spot plus about 7%.  The effect of the GST etc.  Now I see gold is about AUD 50/gram and most gold buyers are advertising prices around $47 to $47.50 / gram which is about spot less 6%.   So going from spot PLUS 7% to around spot LESS 6% is a 13% reduction in the buyback price of spot gold.  Is there any reason for this? Curious to know why the sudden and dramatic change.

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#2 2016-12-12 20:28:16

Bullion Baron
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From: Adelaide
Registered: 2009-09-14
Posts: 7,325
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Re: Scrap Gold Buyback Prices - Dropping?

See the stories linked in this thread: http://forums.silverstackers.com/messag … ml#p978243

Refining/scrap industry is under scrutiny by ATO/AFP as a result of massive fraud. As a result some refiners have resorted to not accepting scrap gold (only taking it direct from mines).

I think it's unlikely we'll see a return to premiums regularly being paid over spot price for scrap following recent events.

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#3 2016-12-12 21:22:56

billybob888
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From: Australia
Registered: 2014-01-08
Posts: 1,518
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Re: Scrap Gold Buyback Prices - Dropping?

Im not really into the scraping business, but why would anyone pay 7% over spot for scrap gold when most of the 9999 gold from bullion dealers are less than 7% over spot

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#4 2016-12-12 22:11:23

goldenspike
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From: Victoria, Australia
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Re: Scrap Gold Buyback Prices - Dropping?

Thanks Bullion Barron.  I dont quite follow however.  If the GST law remains unchanged, then the gold buyers will still be claiming their 10% input tax credit therefore the buyers have simply upped their profits by 13%?  Or are the scrap gold buying companies no longer claiming a GST input credit even though the law entitles them to do so?  It seems quite odd if the law says the gold buyers can claim a GST credit but the gold buyers would choose not to do so?

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#5 2016-12-12 22:32:16

Gullintanni
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Re: Scrap Gold Buyback Prices - Dropping?

Dealers buying gold for spot + 7%, i smell porkies and they always seem to be from members who have just a few posts.
The only surprising aspect of your comment is that you did not claim to  scrap 100k worth of gold   each month, but i dare say that was coming:)

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#6 2016-12-13 02:29:29

goldenspike
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From: Victoria, Australia
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Re: Scrap Gold Buyback Prices - Dropping?

MAK Precious metals in Collins St Melbourne used to buyback scrap gold at about 7% above spot.  They are now 6% under spot.  W Davis is still advertising buying gold at about spot +2%.

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#7 2016-12-13 03:06:33

ag_n_au_in_oz
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From: Australia Victoria
Registered: 2015-01-13
Posts: 89
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Re: Scrap Gold Buyback Prices - Dropping?

goldenspike wrote:

MAK Precious metals in Collins St Melbourne used to buyback scrap gold at about 7% above spot.  They are now 6% under spot.  W Davis is still advertising buying gold at about spot +2%.

W Davis gas been out of business for awhile now as far as I know

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#8 2016-12-13 04:43:24

Ipv6Ready
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From: North Sydney
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Re: Scrap Gold Buyback Prices - Dropping?

The only reason a dealer now would pay above spot is because they plan to sell it as jewellery.

If a dealer tried to claim scrap lol, they would want to make sure it didn't run foul of ATO smell test and bulldozer.


WTB 4 to 6 grams of pure gold. Don't care if it is coin, bar or granules. Near spot, suits anyone who has been tempted to open a certicard or just have some granules to make a ring

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#9 2016-12-13 05:10:12

Bullion Baron
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Re: Scrap Gold Buyback Prices - Dropping?

goldenspike wrote:

Thanks Bullion Barron.  I dont quite follow however.  If the GST law remains unchanged, then the gold buyers will still be claiming their 10% input tax credit therefore the buyers have simply upped their profits by 13%?  Or are the scrap gold buying companies no longer claiming a GST input credit even though the law entitles them to do so?  It seems quite odd if the law says the gold buyers can claim a GST credit but the gold buyers would choose not to do so?

As per articles in the thread I linked, refiners are getting wary, either not dealing with scrap = less reason for other buyers to be as competitive. Also article states ATO is holding back GST credits, so refiners and scrap dealers have probably started trading based on an expectation they may not see those credits regardless of what the law says.

There is talk parliament may try to change the law early next year. I hope so. The sooner they get rid of GST/credits being paid on scrap metal the better.

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#10 2016-12-13 18:38:59

betterlatethannever
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From: Boganstan
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Re: Scrap Gold Buyback Prices - Dropping?

If you have some to move just offer it here.

Have an auction starting it at spot.

Merry Christmas  smile


SPECIAL NOTE - Supporting The Nation Of Israel 100% Of The Time 100% - Shalom.

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#11 2016-12-14 19:06:59

Gullintanni
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From: New Zealand
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Re: Scrap Gold Buyback Prices - Dropping?

betterlatethannever wrote:

If you have some to move just offer it here.

Have an auction starting it at spot.

Merry Christmas  smile

But they would be after spot +7% JUST LIKE THE DEALERS apparently

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#12 2016-12-14 19:19:21

Ipv6Ready
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From: North Sydney
Registered: 2016-01-08
Posts: 2,261
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Re: Scrap Gold Buyback Prices - Dropping?

Gullintanni wrote:
betterlatethannever wrote:

If you have some to move just offer it here.

Have an auction starting it at spot.

Merry Christmas  smile

But they would be after spot +7% JUST LIKE THE DEALERS apparently

As long as there is a buyer and not claiming GST like the dealers not an issue smile


WTB 4 to 6 grams of pure gold. Don't care if it is coin, bar or granules. Near spot, suits anyone who has been tempted to open a certicard or just have some granules to make a ring

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#13 2016-12-15 06:27:15

goldenspike
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From: Victoria, Australia
Registered: 2016-08-10
Posts: 29
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Re: Scrap Gold Buyback Prices - Dropping?

All this hubbub about the GST rip off of bullion being palmed off as scrap to attract the 10% GST input credit is nothing new.  Here's an article I found from 2014 about GST on scrap/bullion.  I guess something must have happened between now and July when I last sold scrap gold to the bullion dealers in the OP I mentioned who paid spot +7%.
http://www.smh.com.au/national/rivers-o … 3btv8.html

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#14 2016-12-15 06:32:48

goldenspike
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From: Victoria, Australia
Registered: 2016-08-10
Posts: 29
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Re: Scrap Gold Buyback Prices - Dropping?

Ipv6Ready wrote:

The only reason a dealer now would pay above spot is because they plan to sell it as jewellery.

If a dealer tried to claim scrap lol, they would want to make sure it didn't run foul of ATO smell test and bulldozer.

I dont know about that.  Buy $100 worth of scrap gold for $107, receive your 10% lawful tax credit thus in reality you get $110 for the scrap gold and you have made a $3 profit or 3%.  Governments and big corporations are masters of manipulating a system (a system they actual rig in favour of themselves as they write the laws) but when others lawfully use the laws available for their own gain suddenly you get the AFP/ATO involved simply because these powers that be "dont like it".  Well if these powers dont like it, they can go to their political masters and have the law changed.  Till then I see no reason why a person buying scrap gold and operating within the law has anything to fear.  Palming off bullion as scrap on the other hand is of course tax fraud and is not what Im referring to here.

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#15 2016-12-15 08:42:57

Ipv6Ready
Silver Stacker
From: North Sydney
Registered: 2016-01-08
Posts: 2,261
Trades :   39 

Re: Scrap Gold Buyback Prices - Dropping?

goldenspike wrote:
Ipv6Ready wrote:

The only reason a dealer now would pay above spot is because they plan to sell it as jewellery.

If a dealer tried to claim scrap lol, they would want to make sure it didn't run foul of ATO smell test and bulldozer.

I dont know about that.  Buy $100 worth of scrap gold for $107, receive your 10% lawful tax credit thus in reality you get $110 for the scrap gold and you have made a $3 profit or 3%.  Governments and big corporations are masters of manipulating a system (a system they actual rig in favour of themselves as they write the laws) but when others lawfully use the laws available for their own gain suddenly you get the AFP/ATO involved simply because these powers that be "dont like it".  Well if these powers dont like it, they can go to their political masters and have the law changed.  Till then I see no reason why a person buying scrap gold and operating within the law has anything to fear.  Palming off bullion as scrap on the other hand is of course tax fraud and is not what Im referring to here.

The powers that be don't like it. Basically because dealers were rooting system.
Basically buying pure gold bullion at 3% premium, scrapping it and pocketing the gst refund.
100% with you, Do it legitimately, document it, alll good. Do it like a crook and get burnt.


WTB 4 to 6 grams of pure gold. Don't care if it is coin, bar or granules. Near spot, suits anyone who has been tempted to open a certicard or just have some granules to make a ring

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