How to Avoid Cash-for-Gold Scams

How to Avoid Cash-for-Gold Scams


How to Avoid Cash-for-Gold Scams. When gold prices rise, selling your gold jewelry
might seem like an easy way to make extra cash. But you have to be wary — a lot of scammers
are out there to rip you off. You will need Estimate of your gold’s value
Several offers Established, local buyers and license check. Step 1. Know that gold jewelry is bought based on
weight and purity. Have an estimate of the weight in troy ounces
of your item, minus any stones or non-gold areas, and know the purity, such as 14 or
18 karat. Divide the number of karats by 24, the percentage
of pure gold, for the percentage of gold of your piece. Step 2. Get an estimate of the value of your gold
by putting in the weight and purity numbers, along with the current price of gold, into
an online gold price calculator. Step 3. Consider an offer fair if you are offered
at least 50 percent of the gold value for the jewelry. For example, if you’ve calculated that the
metal value of your piece was worth $120, consider a $60 offer valid. Reputable companies consistently offer around
50 percent, while disreputable companies consistently offer much less. Step 4. Get multiple offers. Ask each buyer the weight, purity, and price
per gram they are using to calculate price. If a jeweler offers an extra high trade in
value toward purchase of new merchandise, make sure to get another offer first as you
may be able to secure a better cash buy price. It is possible the karat weight listed on
your piece is lower than marked. If several buyers note the lower purity, they
are probably correct. Step 5. Deal with established local buyers. Coin or bullion dealers often offer the best
prices. Never deal with mail-in companies, which typically
low-ball, counting on the fact that most people are unlikely to solicit other offers. Don’t let your jewelry out of your sight until
you sell it. Stones could be removed or switched. Step 6. Be wary of quotes you get over the phone. Many times, the price will be lower when you
get inside the store. Step 7. Get separate offers for each piece if you
only have a few. If you several, all items of the same karat
weight may be weighed as one lot. Step 8. Watch out for prices quoted in pennyweights
instead of grams, which some buyers use to make their offers sound higher. There are 20 pennyweights in a troy ounce,
so if one buyer is paying $12 per gram, the buyer using pennyweights would have to offer
$18.60 per pennyweight to match it. Step 9. Ensure that prospective buyers are licensed
and comply with state and local laws. Many states require a separate license from
the police department or sheriff’s office in order to legally buy items from the public. Buyers who fail to comply are more likely
to rip you off. Did you know The California gold rush began
on January 24, 1848, when James W. Marshall found a gold nugget in the American River
while working at John Sutter’s mill.

13 Comments

  1. @killy642 I totally agree. On a side note, I will take your valuable metals off your hands, in exchange for a small monetary settlement.

  2. I want to know what all those companies are doing with that gold. Gold is the most vaulable ascet in the world, why would anyone want to get rid of theirs?

  3. Great info but why do you use such good ball actors. This guy looks stupid with his George Burns glasses. The dumb actors undermine the credibility of your site.

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