5 ms·

Reminds me of the stories of people in NYC's diamond district making their living by looking for dropped gemstones and tiny bits of gold. https://nypost.com/20

by notJim 2y ago

Reminds me of the stories of people in NYC's diamond district making their living by looking for dropped gemstones and tiny bits of gold. https://nypost.com/2011/06/20/got-his-mined-in-the-gutter/ https://nypost.com/2011/06/20/got-his-mined-in-the-gutter/ https://www.youtube.com/watch?v=TfrqUNFtM6A https://www.youtube.com/watch?v=TfrqUNFtM6A

kjkjadksj 2y ago
I'm wondering how these gemstones even make their way on the street. Are jewelry workshops really so messy and flippant with this product that it presumably gets caught up on people and just falls off their clothes when they leave from work? Is it from crappy stone settings falling off immediately on leaving the stores? Seems so strange to me how such a valuable product ends up dispersed in the environment like this.
- mtnGoat 2y ago
  Some jewelers are dealing with things of great enough value that some gold dust or small stones doesn’t matter. Most jewelry value is not in the gold or gems, it’s in the eye of the beholder so to speak. So losing the actual ring is a much bigger loss than the gold/gem value. However, a guy on the street that isn’t dealing in six figure goods, places great value in that small gold amount. Most people would be amazed at how little, when not in a shop under bright lights, jewelry is actually worth. Let’s just say they aren’t selling gold, they are selling emotions and hype. And many customers get extremely angry when they go to resell and find out how little it’s worth. You’ll be lucky to get a tenth of what you paid for the stones. Source; my wife ran the biggest gold buying store in northern LA county for a few years.
  - eru 2y ago
    Yes, but any savings go straight to the bottom line.
    - goldinquiry1 2y ago
      Right – if spot price per oz is $2,418.95 and say hypothetically I am sourcing it for $1700/oz there seems to be a reasonable amount of margin there if you can find a buyer for it.
      - fbdab103 2y ago
        It is a global market, why in the day of the internet, would someone cut you a 30% margin? There might be some hassle crossing international borders, but gold is not generally illegal where there is an outsized risk in moving it.
        mtnGoat 2y ago
        The margins mentioned are about in line with most “gold buyers” that have store fronts. 70% of spot is a decent starting point for “salvage” gold. If it’s in any form but rounds or bars, it’ll need to be melted down which has a cost. So it can be made into a form that can be resold closer to spot value. The margin are actually even better if you melt them down. it’s really hard to buy physical gold at spot, single ounces/grams go for a few points higher.
      - owenmarshall 2y ago
        Anyone offering a discount of over 2500 basis points to participate in what might be one of the most accessible markets across the world isn’t offering actual value, they’ve just found a good mark.
  - bruce511 2y ago
    I second this, jewelry has very little value on the 2nd hand market. Gold, Silver etc have a daily published value, and you can expect a number close to that (allowing for margin). But "precious stones" are really not all that precious, or rare. When selling (to a dealer) you discover the margins they make- often upwards of 90% (as my father discovered selling jewelry he inherited.) To be fair, crafting takes significant labor and most old jewelry has to be melted down and recrafted. None of this negates the significance of one person giving another jewelry. That adds substantial sentimental value which is what makes them valuable at all. (It does make me smile though when movies use uncut diamonds as some sort of compact currency...)
    - fbdab103 2y ago
      So, resale market on stones is trash. What is to stop an intrepid jeweler from purchasing grandma's/ex-spouse's/whatever's precious jewelry for 10 cents on the dollar, and reselling it back into circulation as "new"? Maybe with a perfunctory shaving off a face to make a "new" item. Or is this already regularly done (as I would assume)?
      - jachee 2y ago
        Assay marks.
      - mtnGoat 2y ago
        Yes that is regularly done. The jewelry buyers take them out and sell them in lots for very low cost to just about anyone willing to pay, those buyers then recycle the stones into settings or back into stores. The buyers are buying on pure wholesale value, whereas the end jeweler is selling for sentimental value.
      - bruce511 2y ago
        That's exactly the point. It's what they do do. If you take 2nd hand jewelry to a jeweler you get about 10 cents on the dollar. Some gets resold as is (there's a (limited) market for vintage jewelry) but most is reworked. And of course that reworking takes significant time and skill.
  - goldinquiry1 2y ago
    I just posted an Ask HN. Would love to learn more about gold selling, in general, as I have a contact that is capable of sourcing me gold from Burkina Faso.
    - coffeebeqn 2y ago
      Sounds like a great way to get scammed! Gold is already very liquid with a real time price on multiple metal exchanges across the globe.
    - mtnGoat 2y ago
      Unless you have a lot, you probably won’t get close to spot price. You might be able to find some local artisans that will pay better for small amounts then the big houses will. Gold in stamped form has the greatest value. Nuggets or mined gold, some buyers are afraid of and won’t pay until it’s melted. Gold teeth are worth the absolute least.
      - ethagnawl 2y ago
        > Gold teeth are worth the absolute least. That was an unexpected kicker. I suspect you or your spouse must have a good story about shady people trying to work that angle.
        mtnGoat 2y ago
        They are just generally gross, a lot of them aren’t cleaned(which can also smell), apparently they explode when heated, it’s hard to gauge the purity and weight of the gold until you remove the tooth. Lots of issues. Just messy business.
  - testfoobar 2y ago
    How did she confirm that items she was buying contained the gold claimed?
    - mtnGoat 2y ago
      Testing tools, and a lot of knowledge. Knowing what it is and where it’s made informs a lot. Once in a while you’ll get someone that is scamming and had stuff made with extra thick plating. Most pieces they will cut in half, grind a bit off, drill into it, etc. to do an acid test to determine gold content, then weigh it. After a while she just kind of knew what to look out for. How people presented the goods, how they acted, etc. The most shocking part to me, was how many 80s-90s celebs would bring in gold to sell. I guess times get rough.
- BobAliceInATree 2y ago
  Rubies for watches are synthetic and super cheap. And the small diamonds are still pretty cheap. He said about $100 per carat of small diamonds. It's not surprising that they're more casual with this inventory.
- cyberax 2y ago
  > Are jewelry workshops really so messy and flippant with this product that it presumably gets caught up on people and just falls off their clothes when they leave from work? Boots, not clothes. Diamonds are so sharp that they easily get lodged in rubber soles. And then fall out when you walk.
  - michaelt 2y ago
    Grocery store cashiers and bank clerks often don't get to leave until they've accounted for every cent that should be in their till. One would think diamond merchants would take the time to be equally careful, if not moreso.
    - BobAliceInATree 2y ago
      Most of these businesses in the district are tiny, family-owned businesses, so there's a huge amount of implicit trust there. But also, these tiny stones really aren't worth much. What you're asking is like Home Depot making sure to account for every single nut & bolt so none are stolen or lost. It would cost far more in time & labor then what you'd get back in return.
- gowld 2y ago
  It's not such a valuable product. It only supports one low-paying full-time job, and who knows how long before the streets have been cleaned out of past accumulation. > Over six days, he says, he collected enough gold for two sales totaling $819 on 47th Street.
jaggederest 2y ago
There's a Cody's Lab video where they refine highway dust for platinum group metals leaking from catalytic converters: https://www.youtube.com/watch?v=v5GPWJPLcHg https://www.youtube.com/watch?v=v5GPWJPLcHg
ainonsense44 2y ago
That video is a guy selling a dream, to sell his own products to the viewer, who believe in the legitimacy of the findings shown in the video. I call marketing stunt. Most unlikely not a truthful representation of what to expect when doing it yourself.

by notJim 2y ago

kjkjadksj 2y ago

I'm wondering how these gemstones even make their way on the street. Are jewelry workshops really so messy and flippant with this product that it presumably gets caught up on people and just falls off their clothes when they leave from work? Is it from crappy stone settings falling off immediately on leaving the stores? Seems so strange to me how such a valuable product ends up dispersed in the environment like this.

mtnGoat 2y ago
Some jewelers are dealing with things of great enough value that some gold dust or small stones doesn’t matter. Most jewelry value is not in the gold or gems, it’s in the eye of the beholder so to speak. So losing the actual ring is a much bigger loss than the gold/gem value. However, a guy on the street that isn’t dealing in six figure goods, places great value in that small gold amount. Most people would be amazed at how little, when not in a shop under bright lights, jewelry is actually worth. Let’s just say they aren’t selling gold, they are selling emotions and hype. And many customers get extremely angry when they go to resell and find out how little it’s worth. You’ll be lucky to get a tenth of what you paid for the stones. Source; my wife ran the biggest gold buying store in northern LA county for a few years.
- eru 2y ago
  Yes, but any savings go straight to the bottom line.
  - goldinquiry1 2y ago
    Right – if spot price per oz is $2,418.95 and say hypothetically I am sourcing it for $1700/oz there seems to be a reasonable amount of margin there if you can find a buyer for it.
    - fbdab103 2y ago
      It is a global market, why in the day of the internet, would someone cut you a 30% margin? There might be some hassle crossing international borders, but gold is not generally illegal where there is an outsized risk in moving it.
      - mtnGoat 2y ago
        The margins mentioned are about in line with most “gold buyers” that have store fronts. 70% of spot is a decent starting point for “salvage” gold. If it’s in any form but rounds or bars, it’ll need to be melted down which has a cost. So it can be made into a form that can be resold closer to spot value. The margin are actually even better if you melt them down. it’s really hard to buy physical gold at spot, single ounces/grams go for a few points higher.
    - owenmarshall 2y ago
      Anyone offering a discount of over 2500 basis points to participate in what might be one of the most accessible markets across the world isn’t offering actual value, they’ve just found a good mark.
- bruce511 2y ago
  I second this, jewelry has very little value on the 2nd hand market. Gold, Silver etc have a daily published value, and you can expect a number close to that (allowing for margin). But "precious stones" are really not all that precious, or rare. When selling (to a dealer) you discover the margins they make- often upwards of 90% (as my father discovered selling jewelry he inherited.) To be fair, crafting takes significant labor and most old jewelry has to be melted down and recrafted. None of this negates the significance of one person giving another jewelry. That adds substantial sentimental value which is what makes them valuable at all. (It does make me smile though when movies use uncut diamonds as some sort of compact currency...)
  - fbdab103 2y ago
    So, resale market on stones is trash. What is to stop an intrepid jeweler from purchasing grandma's/ex-spouse's/whatever's precious jewelry for 10 cents on the dollar, and reselling it back into circulation as "new"? Maybe with a perfunctory shaving off a face to make a "new" item. Or is this already regularly done (as I would assume)?
    - jachee 2y ago
      Assay marks.
    - mtnGoat 2y ago
      Yes that is regularly done. The jewelry buyers take them out and sell them in lots for very low cost to just about anyone willing to pay, those buyers then recycle the stones into settings or back into stores. The buyers are buying on pure wholesale value, whereas the end jeweler is selling for sentimental value.
    - bruce511 2y ago
      That's exactly the point. It's what they do do. If you take 2nd hand jewelry to a jeweler you get about 10 cents on the dollar. Some gets resold as is (there's a (limited) market for vintage jewelry) but most is reworked. And of course that reworking takes significant time and skill.
- goldinquiry1 2y ago
  I just posted an Ask HN. Would love to learn more about gold selling, in general, as I have a contact that is capable of sourcing me gold from Burkina Faso.
  - coffeebeqn 2y ago
    Sounds like a great way to get scammed! Gold is already very liquid with a real time price on multiple metal exchanges across the globe.
  - mtnGoat 2y ago
    Unless you have a lot, you probably won’t get close to spot price. You might be able to find some local artisans that will pay better for small amounts then the big houses will. Gold in stamped form has the greatest value. Nuggets or mined gold, some buyers are afraid of and won’t pay until it’s melted. Gold teeth are worth the absolute least.
    - ethagnawl 2y ago
      > Gold teeth are worth the absolute least. That was an unexpected kicker. I suspect you or your spouse must have a good story about shady people trying to work that angle.
      - mtnGoat 2y ago
        They are just generally gross, a lot of them aren’t cleaned(which can also smell), apparently they explode when heated, it’s hard to gauge the purity and weight of the gold until you remove the tooth. Lots of issues. Just messy business.
- testfoobar 2y ago
  How did she confirm that items she was buying contained the gold claimed?
  - mtnGoat 2y ago
    Testing tools, and a lot of knowledge. Knowing what it is and where it’s made informs a lot. Once in a while you’ll get someone that is scamming and had stuff made with extra thick plating. Most pieces they will cut in half, grind a bit off, drill into it, etc. to do an acid test to determine gold content, then weigh it. After a while she just kind of knew what to look out for. How people presented the goods, how they acted, etc. The most shocking part to me, was how many 80s-90s celebs would bring in gold to sell. I guess times get rough.
BobAliceInATree 2y ago
Rubies for watches are synthetic and super cheap. And the small diamonds are still pretty cheap. He said about $100 per carat of small diamonds. It's not surprising that they're more casual with this inventory.
cyberax 2y ago
> Are jewelry workshops really so messy and flippant with this product that it presumably gets caught up on people and just falls off their clothes when they leave from work? Boots, not clothes. Diamonds are so sharp that they easily get lodged in rubber soles. And then fall out when you walk.
- michaelt 2y ago
  Grocery store cashiers and bank clerks often don't get to leave until they've accounted for every cent that should be in their till. One would think diamond merchants would take the time to be equally careful, if not moreso.
  - BobAliceInATree 2y ago
    Most of these businesses in the district are tiny, family-owned businesses, so there's a huge amount of implicit trust there. But also, these tiny stones really aren't worth much. What you're asking is like Home Depot making sure to account for every single nut & bolt so none are stolen or lost. It would cost far more in time & labor then what you'd get back in return.
gowld 2y ago
It's not such a valuable product. It only supports one low-paying full-time job, and who knows how long before the streets have been cleaned out of past accumulation. > Over six days, he says, he collected enough gold for two sales totaling $819 on 47th Street.

jaggederest 2y ago

There's a Cody's Lab video where they refine highway dust for platinum group metals leaking from catalytic converters: https://www.youtube.com/watch?v=v5GPWJPLcHg https://www.youtube.com/watch?v=v5GPWJPLcHg

ainonsense44 2y ago

That video is a guy selling a dream, to sell his own products to the viewer, who believe in the legitimacy of the findings shown in the video. I call marketing stunt. Most unlikely not a truthful representation of what to expect when doing it yourself.