How to Spot A Scam When You Sell Gold
by    |  October 17th, 2012

No matter the reason — whether you need extra cash or just want to get rid of broken jewelry around the house — sooner or later most people think about selling gold jewelry. Of course, the first step in this process is deciding where to sell gold to get the highest cash return possible.

Searching for a Reputable Gold Buyer
You may be familiar with the old Latin phrase Caveat emptor, or “let the buyer beware.” When you’re trying to sell gold jewelry, a more appropriate phrase is actually Caveat venditor, or “let the seller beware.” There are many mail-in companies in the business that promise you the highest possible price for your gold and most even offer overnight shipping for a fast return. Before mailing in your jewelry or settling on the first gold buyer you find, there are some tricks of the trade you should know.

Mail In Companies
Just as with any other business transaction that is a legal binding contract, there is always fine print somewhere and it should always be read before you agree to it. This is especially true when you are contemplating selling gold to a company through the mail.

The most common problem with sending gold through the mail is the chance that it will get lost. Most companies will not reimburse the sender if the package gets lost or stolen. The second most common problem with selling gold jewelry this way occurs if you decide that you are not satisfied with their quote and want your jewelry back. Although the postage was paid to send in the jewelry, many of these companies charge for return postage and, once more, you are risking the chance that your package will be lost. Some mail-in companies even have complaints against them for a return period that quickly runs out.

Gold Parties
This appears to be the newest trend in the sale of gold jewelry and it is also the most misleading practice in the gold trade industry. It starts with a host (or hostess) that invites people to a home-based party where their gold will be purchased after being appraised by an on-site jeweler. As the seller, you will typically get the lowest percentage of the jewelry’s true value because the jeweler takes a cut, as well as the company that hired him. Even the host gets a percentage of the value that should rightfully go to you.

Another ploy common at these gold parties is to claim that the purity of the gold is in question or report that the karat weight is lower than what it really is. Many of these jewelers will also use penny weights instead of grams to weigh the jewelry in an effort to deceive you.

The Best Way To Sell Gold
Instead of using mail-in cash for gold businesses when you are trying to figure out where to sell gold jewelry, look for a reputable jewelry store or gold buyer. In these scenarios, the reputation of the buyer or store is on the line and they would never compromise that by undervaluing jewelry or using any other misleading practice. Finally, when you sell gold jewelry to a gold buyer or jewelry store, the jewelry never has the chance of getting lost; you can visually see them appraising the jewelry and you receive cash on the spot.

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