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How to Avoid Gold Buying Scams

Updated on March 9, 2012

Don't be cheated!

Title: Gold Jewelry ~ License: photoXpress License ~ Photographer: JoLin
Title: Gold Jewelry ~ License: photoXpress License ~ Photographer: JoLin

Choose a Gold Dealer Wisely!

Times are tough, and there are a lot of people these days just struggling to make ends meet when they never thought that would be the case for them. As we all know, desperate times call for desperate measures, so it isn’t unheard of for people who really need cash now to part with jewelry and other treasured items they thought they’d keep forever.

Of course, this kind of situation sets up an ideal setting for scam artists, and I’m sure you’ve see the “Cash for Gold” ads on TV and splashed across the internet. This kind of business makes it a specialty to prey on people who may not have a lot of business savvy and might be easily tricked into selling something valuable for very little, or in the worst case, simply losing their valuable gold items.

If you’re thinking about selling your gold jewelry, that’s fine, but be sure you get what it’s worth, and be sure you choose a reputable person or business to deal with. There are a few specific steps you can keep in mind when you are trying to find a good dealer for selling your gold.

First of all, don’t deal with anyone who wants you to do anything “fast”. Take your time and don’t make a move until you are completely comfortable and satisfied.

Watch out for deals where you are supposed to get a “kit” in the mail. This is just a self-addressed stamped envelope. What they want you to do is drop your gold into the envelope and mail it to them with the promise that they will immediately send you a check. Well, how stupid is that?

In the first place, you could just end up losing your items. In the second place, even if they do eventually send you a check, it could take a month or more. You could have found someone close at hand to sell to in that time and been done with your transaction.

Then there are the ones who say they will deposit money into your bank account within a day of receiving your items. If you need cash now, this may be very tempting, but again, think about it! Do you really want to give out your banking information to a total stranger?

Aside from that, if they do actually deposit funds into your account and you accept them, it means you accept the price they have set. This gives them a good chance to cheat you. Better to go with a brick and mortar honest dealer in your area where you can call the shots.

A few years back, I actually needed to raise a little cash, and I decided to sell a gold ring and some gold coins that I had. I went to a well-established local pawn shop. This is a family owned business that has been in the same location since the turn of the last century. They gave me a good price on the jewelry and gave me a referral to a coin collector for the coins.

Of course, not everybody is lucky enough to have this kind of business in town, but the internet is good for more than signing up for “get cash now” schemes. Use your favorite search engine to research pawn shops and jewelry dealers in your area. When you find a few you like, check them out with the Better Business Bureau online.

If you do decide to go with an online gold buyer, be sure to check everything out. Read reviews and, again, check with the Better Business Bureau online to find out what kind of rating the buyer has. Don’t do anything at all until you are 100% sure you can trust any gold buyer you may be dealing with.


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    • SallyTX profile image

      Sally Branche 5 years ago from Only In Texas!

      Glad to be of service! ;D

    • Anjili profile image

      Anjili 5 years ago from planet earth, a humanoid

      Voted up and useful for giving important information on cons and tricks in the selling of golden items. I'm sure many will save alot from your advice. Thanks for sharing. Take care