Gyrogami Blog - Precious Metals, Jewelry, Artwork

Price Gouging

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Categories: Ethics and laws; Commerce and business

Word count/read time: 447 words; 2 minutes

Who can be faulted for hounding out good deals or cashing in when the opportunity presents itself? Some (unethically?) benefit from disasters like Hurricane Harvey. Regardless of the sellers' intentions, market forces determine whether it is $3.75/gallon gas or $12. Gouging works and it might be necessary at times.

The pandemic showed some serious supply chain issues: shortages, price increases, unfair competition. The USA government declared a state of (medical) emergency which gave certain entities unchecked power and made it illegal to charge more than some arbitrary amount for medical devices.

Unfortunately, you can't be a small fry without being prosecuted for making a profit. However, a much different story comes when large corporations get involved. The biggest industries with deep pockets and entrenched lobbyists will have their interests protected.

Government interference is nothing short of price fixing. At times the federal response couldn't get to disasters fast enough and the free market came to the rescue, overpriced or not. You can't praise it one minute then deny it the next!

In effect, the government condoned the financial raping by big pharma that carte blanched their way to riches. They were given unbridled authority to write their own paycheck profiting 1,000,000x more than the $12/gallon "criminal" gas sellers yet were hailed as heroes.

If the vaccine's efficacy wasn't so overstated it would have been more tolerable. Realistically, covid is not even a mild threat to our existence according to the numbers when compared to important, planet-destroying issues like global warming, environmental decimation, and social inequality.

Will government price police go after online venues? Will the awesome deals I get be taken away because I didn't pay enough? My profits reduced because someone overpaid for my items and the government took offense? Who, exactly, decides when a price is exorbitant?

Examples of price gouging are evident in all industries. In the chainmaking industry, butted chains (not welded or soldered) are significantly overpriced. As a guideline, a butted version should be about 5-15% the cost of a properly made welded or soldered one, especially precious metals.

Precious metals make it more expensive but won't transform a low-quality piece into something else. Manufacturers charge a premium regardless. Precious metals highlight a skilled artisan's workmanship just as they do the opposite for a wannabe; only the former gets the prize.

Reverse price gouging is also a common practice. An uninformed seller with a valuable item is particularly susceptible. I am appalled that some places offer less than 10% of the scrap value for precious metals! If someone approaches me with silver or gold I am obligated to pay a fair market price. They are often shocked at how high it is.

Posted by M: December 5, 2022

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