Home parties latest way to turn unwanted jewelry into cash

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KNOXVILLE, Tenn. - Maggie Reynolds picked up the large, knot-style gold earrings and held them to her ears.

"Can you imagine I used to wear these?" asked the 42-year-old mother, who had in front of her a small pile of jewelry that included a gold seashell bracelet bought on vacation and what she deemed "the ugliest mermaid pendant ever."

Reynolds was one of several guests who on a recent weeknight brought her unwanted jewelry to a friend's house, where they gathered for a Jewelry Television gold party.

The Knoxville-based home shopping network launched the party program last week as an expansion of its gold and platinum buy-back program, which has written checks totaling more than $3 million to its customers in the last four months.

"We obviously quenched a thirst for a credible gold buy-back program that you don't see in the business," said Tim Engle, senior vice president of strategic initiatives for Jewelry Television.

Of those who sent in gold seeking to take advantage of gold's record-high prices, which have risen to more than $1,000 per ounce, 93 percent accepted the retailer's monetary offer.

"That's a pretty big deal," Engle said, noting participants have received an average check of $400 per person. "When we get to that level of satisfaction, we feel we can build on our success."

The company modeled its new party program after others like Pampered Chef, but instead of spending money, guests make it.

"It's a fun way for people to enjoy an evening with friends and make money," he said.

That's what Kristin Abouelata said prompted her to host her own gold party.

"I'm not one of those party people, but there's no obligation to buy anything. They're making money," she said.

Hosts pay $19.99 for a kit that includes invitations, pre-paid envelopes, a DVD and freshwater pearl earrings. They also receive 10 percent of the amount their guests receive. The unpacking and arrival of the jewelry is videotaped and posted online for customers to review.

"We make no money on the kits. We just want people to try it," Engle said. "By making someone pay for it, they are more committed."

Gold parties and mail-in gold businesses are part of a national trend, but Engle believes the market is still untapped. Experts, he said, estimate it to be a more than $1 billion industry.

Jewelry Television, which sells jewelry and gemstones, started its gold buy-back program after receiving inquiries from customers who wanted a credible source to sell their old jewelry, Engle said.

Nevertheless, consumers have to watch for businesses that are "fraudulent fronts for thieves interested only in taking jewelry from unsuspecting consumers," said Shannon Ashford, public information officer for the Tennessee Department of Commerce and Insurance.

Before they consider participating in such programs, Ashford said they should check for complaints against companies they're considering patronizing.

(Carly Harrington is a business reporter for The Knoxville News Sentinel in Tennessee.)