Chatter Magazine
Posted: 03.26.2010
If it's a garlic press you're after, or that perfect shade of lip
gloss, this home party isn't for you. Got a single gold hoop earring? A
gold ring from an ex? A soft gold crown with your tooth still attached?
In the spirit of Pampered Chef and Mary Kay parties, those hoping to
cash in on the high price of precious metals are throwing "gold
parties" in North Georgia and other parts of the country.
The concept: Invite friends who have unwanted gold to join a consultant
in your home to learn how much Grandma's brooch is worth. Those who
work for various gold party companies say their events are the safest
way for consumers to cash in on gold. Rather than packaging and
shipping your gold only to wait for a check in the mail, or stopping by
a seedy pawn shop, friends gather for a relaxed, casual party.
"I wanted to sell my gold but I didn't want to walk into a pawn shop,"
says January Thomas, founder of Michigan-based My Gold Parties. "That,
to me, felt a little desperate. I've never had anyone at a party come
up to me because 'Oh, I really need to do this.' It's actually a very
light, very fun party."
But not everyone agrees. Because there is no industry standard for how
much a buyer must pay someone for their gold, critics say gold party
hosts are little more than scam artists trying to make a buck.
Bob Mason, who owns Rone Regency Jewelers, doesn't advertise the fact,
but he occasionally buys gold, purchasing it from customers when asked.
When it comes to gold parties, he says it's "buyer beware" and offers
tips to those who decide to go.
"The people who are holding the parties, what they're paying for gold
is probably well below the price the gold is worth," he cautions. "You
need to go to someone who has a reputation in the community for being
honest and straightforward. Ask them to show you the price they're
willing to pay you, and make sure they're weighing it accurately."
Thomas says what her company offers to customers-65 percent of the
current price of gold-isn't a ripoff . She insists that her party reps
always test jewelry digitally to make certain it contains real gold,
before weighing it. Reps offer a price they're willing to pay, and
sellers can either accept the price and take the money, or reject the
off er. "There's no obligation to sell," she adds.
The first time Christina Pink of Atlanta hosted a gold party, she
walked away with $1,100. Known as "the party girl," the stay-at-home
mom had thrown handbag parties, jewelry parties and makeup parties, but
couldn't shake the feeling that they were a scam. "You feel obligated
to buy things to help your girlfriends move up steps," she says. "I'm a
consumer, and I know what things are worth. Those parties are a rip off
."
But after throwing a gold party, she felt she'd found a gem.
"You can have your friends over, have a few refreshments, catch up with
your neighbors who you never get to talk with because you have kids,
and you leave with cash in your pocket," she says. "Having a gold party
was the easiest sell in the whole world."
Sandi Staiti, a My Gold Party rep from North Georgia, says for some
reason gold parties haven't caught on in the Chattanooga area. She says
local partygoers attending events she's thrown, have asked her to come
north, and she plans to expand her business.
"It's so unlike any other party I've ever been to, where you have to
buy the $50 pizza cutter none of us want," she says. "We hear great
stories, we hear funny stories. It's the only party where the
ex-boyfriends and husbands aren't the big jerks."
But Louis Brody, owner of Brody Jewelers on Rossville Boulevard,
remains skeptical. Salesmen have pitched him and dropped off fliers, he
says, trying to get his firm involved in gold parties. People who are
hosting the events are making money, he says, along with those actually
buying and refining the gold. "But you come out a lot better if you
take it (gold) to a jewelry store because you take out the middle man,"
he adds. "For my customers, I'd rather just give them the extra money."
