When the price of gold rises, you may consider selling the gold jewelry that you own as an easy way for additional cash. However, you have to be very careful because there are a lot of cash for gold scammers around, waiting to rip you off. Consumers are at a disadvantage when it comes to getting the right amount for their gold jewelry. For the sellers of gold, it is unfortunate that many gold buyers open transitory stalls in the mall or send their reps to events or private parties, just to swindle the innocent. For that reason, you won’t be able to contact them to complain about your transaction, if you are not pleased. In addition, there are still many proven tactics that these unscrupulous people use to scam the consumer such as bait and switch methods and inexact scales. To avoid the scam, follow the six steps below prior to selling your gold coins or gold jewelry.
1. Investigate the Buyer
Be sure to conduct a thorough investigation on the buyer. Look at the rating that the Better Business Bureau has on the buyer. Go to online review sites to see what other consumers are saying. It is wise to sell your gold locally than to trust an event that moves from state to state, on a website or a private party. Never mail your gold to a buyer in another state. You don’t want to have to chase the buyer to another area for a refund. Locally, the gold buyer will be more interested in maintaining a good reputation to give you more confidence to sell your gold.
2. Ask for an Estimate
Ask the gold buyer for an estimate, using the purity numbers and weight as well as the existing price of gold to provide an accurate calculation. There is a racket going around about price protection. Don’t believe it.
3. Look at Other Offers
Look at other offers and consider the one that appears to be fair. If you are getting fifty percent of the value of your gold, you could consider this a fair offer. If you were to calculate that the metal value is $100, $50 would be fair. Most reputable buyers will offer fifty percent while others won’t.
4. Look at More than One Offer
Look at more than one offer so you can choose the one with the best offer. Each buyer would provide the purity, weight and price for each gram of gold, after which you would make the desired choice. If a buyer asks you to trade your gold value for new merchandise, don’t accept that offer first. You may be able to get cash from another buyer.
5. Do Business with an Established Buyer
Make sure you do business with an established buyer of gold coins and jewelry. Pick a company in business for at least 5 years and has a local reputation of offering the best prices.
6. Proper Licensing
Make sure that the buyer has the appropriate licensing to do this kind of business transaction. In many states, there is a special required license for buying gold in exchange for cash. Conduct your research before you conduct this type of business.
There are so many people searching for ways to get additional income. However, even though, you want to make extra money, don’t fall for cash for gold scams. Get the knowledge you need to determine when and if you are being swindled out of your gold.