Protect Yourself from Cash for Gold Fraud

As the price of gold continues to rise and the recession continues to hit more and more families hard, there are an increasing number of businesses popping up, eager to take advantage of desperate sellers. As with anything else, the best thing you can do is educate yourself, and do lots and lots of research. Here are a couple of heads-up pieces

of advice about what to look for, and what to watch out for.

When considering a business for selling gold, your first step should always be to check them out with the Better Business Bureau. The number of complaints that the Better Business Bureau has received against jewelry-purchasing operations has skyrocketed in the last few years .

A lot of the complaints have been about shoddy business practices and poor customer service; checks are taking too long to get to the seller, the company does not return calls and messages, and it is difficult to get gold items back if the seller rejects the offer the company has made. The most serious complaints are about the amount of money that the company has offered the seller for the gold.

Although the gold-buying companies often defend themselves, most complaints are probably legitimate. Busy consumers don't take the time to complain about a business unless they truly feel that they have been ripped off.
Beyond researching a company with the Better Business Bureau, sellers should keep in mind that what seems easiest may not always be best. Gold parties are the modern version of Tupperware parties.

They've been popping up in neighborhoods everywhere, and it sounds fun to gather at a friend or neighbor's house, have some wine and sell your old gold. But the price paid to the consumer at these events is often substantially lower than what would be received from a gold-buying business. Commissions need to be paid to the party hostess as well as to the person acting as appraiser at the party, and those folks are rarely professionals.

They are not weighing the gold in the same way that professional gold-buying companies do, and they have no scientific method of appraising the content of the gold in each piece. It is very unlikely that true value is being paid. The same can be said of selling to pawn brokers; it may seem easy to go the neighborhood pawn broker who has been there forever, but they are paying salaries and expenses such as rent and electricity, and because they can't resell jewelry that is broken or no longer in style, the gold you bring in may be more work for them than they want to put in; it is unlikely that they will be paying top dollar.

The best way to make sure that you are receiving the most for your gold is to start with an appraisal from a reputable jewelery; this way you can be confident about what it is actually worth. Then, if possible, work with a cash for gold business that acts as its own refiner. Because these companies don't work with a middleman after purchasing your gold, they are able to pay you the most competitive amount.

Also, be sure to look for a company that posts the price they are paying for gold on their website. Companies that do this are generally considered to be more reputable. Finally, if you don't think you are receiving a fair offer, don't hesitate about rejecting a gold-buying company's offer. Some companies will increase their bid; if they don't and you aren't satisfied, they are required to send your gold back to you.

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