If you watch television, read newspapers or read magazines, you have most likely seen one or more “we buy gold” ads. As the price of gold continues to spiral upwards, so have the gold buying scams and schemes.
While many of the “buy by mail” gold companies appear to have your best interest at heart, appearances can be deceiving. Before you sell your gold, read the tips below to see how you can safeguard yourself against getting cheated or scammed when you sell your gold.
1. Sell your gold by mail only as a last resort. The minute you ship your gold treasures and trinkets, you have lost control. Once the transaction is completed and you don’t feel you were paid the true value of your gold, there is very little you can do.
Even if a company claims that they pay top dollar, or that they pay more than local sources — don’t believe it. In fact, the opposite is usually true. You will generally get more for your gold locally than you will by mailing to one of these distant companies.
2. Find a reputable dealer in your area. You can confirm your choice by contacting the National Association of Jewelry Appraisers. You can also inquire about mail-order gold dealers if you are determined to sell by mail.
3. Sell your gold locally and in person. You are less likely to get scammed when you are standing face to face with a gold buyer. Nothing can get lost in the mail and you can decline any offer you feel is not fair.
If you are unable to get around and cannot visit local gold dealers, relegate the task to someone you trust. Be sure to instruct them about minimal amounts you will accept. The more knowledgeable they are about gold prices, the better.
4. Create an inventory list of all the pieces of gold and other precious metals you wish to sell. When you present your pieces to the clerk, read from the list telling them what you are selling.
This is a good psychological ploy and lets the clerk know that you know exactly what you have. This makes it less likely that they will try to hold back a piece or two in the event that you decline their offer. If you feel that this type theft could never happen — you may already be in trouble.
5. Spend $5 or $6 on a small gram scale. This will allow you to get a general idea of how much gold you have. Bring the scale with you when you go to local gold dealers. If the weight they get is way off, pull out your scale and let them know that you get a completely different weight.
Weigh your gold again in front of the gold buyer and have them weigh it again on their scale. You also want to insist that you see the weight on their scale. Don’t just take the clerk’s word for the weight.
The next time you see a “we buy gold” ad, check to see if it is for a local gold dealer. Dealing locally will help ensure that you avoid scams and get the best prices for your scrap gold.