Offered 18k chain at below spot

It's got a $5100 melt value
The guy wants $4700
He's a work colleague of mine I've known for years so I'm confident it's not stolen or fake.
This seemed like a great deal but I've just AI'd the resale on jewellery and it's terrible. I assumed it would trade for at least spot but I'm way off.

I like the idea of having some gold in a wearable object that can go over borders etc unnoticed so I'm tempted to get it, but realistically... What's it really worth as an investment?

What's the best rate he could get in Australia (Perth) ? Trying to work out what I should offer him
 
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