a woman who is avoiding a gold-buying scam

Avoiding Scams When Selling Your Gold

The allure of selling gold in exchange for cash can be quite temptating. Though it could be beneficial to your wallet, scams abound and fraudulent interactions are not unusual. The phrase "all that glitters is not gold" can, unfortunately, be applied to the credibility of gold buyers. Below are a few tips for avoiding scams.

Scams

Theft can occur most easily in transactions with an online company that purchases gold. After receiving a quote through the site's calculator, customers mail gold chains in, only to be quoted a lower price over the telephone a few days later. Many customers request the return of their jewelry, but when it comes back, it is sometimes missing links that the company will keep for its own profit.

Buyers often take advantage of sellers using the seller's own ignorance about the precious metal. Not everyone is honest, and buyers may pay less because the seller is unaware of the product's proper weight and gold content. These types of buyers will be quite happy to use a seller's lack of knowledge for their own personal gain.

Tips for Sellers

With a bit of effort, sellers can avoid cash-for-gold scams. One easy preventable measure is to avoid selling through an online company. Sell to people you can meet in person, those who have local references. Ensure that you can be in attendance while your product is being examined. Educate yourself on the gold you are trying to sell. Knowing the correct content, weight, and value will allow you to identify any possible scammers almost immediately.

Whether you go through an online company or a local pawn shop or gold dealership, research is key. Read the reviews for the business you're thinking of selling to, but be careful to spot reviews that may have been fabricated. Look through negative reviews to see if any disturbing patterns emerge as red flags. Check for consistency in reviews by investigating a number of rating websites.

Seek business with a company willing to use price-match guarantees. This indicates to the buyer that you are getting quotes from other companies. A little healthy competition should ensure honest pricing as well as making you more difficult to fool with dishonest buyer tactics. Payment should be received within 48 hours from online buyers and immediately if through a local company. A wait time of longer than 48 hours is indicative of possible fraud.

Sadly, cash-for-gold scams are not unusual. They can be straightforward thefts or subtle promises of payment that will never be honored. Look for licensed and bonded gold brokers, as the state they work in must approve them for business. Accredited buyers are also trustworthy due to external reviews by other agencies. The Better Business Bureau can provide useful information regarding any questionable behavior exhibited by a company. Diligent research and investigation can lead to a positive gold-selling experience.

Last Updated: February 09, 2016