Be Aware of Cash for Gold Scams

October 4, 2011

Many new gold buyers jump into the world of gold because of the excitement of turning a good profit. What they don’t realize is just how many scams there are out there targeting those who buy gold jewelry or those who sell it.

Online review sites and the Better Business Bureau are rife with complaints regarding companies that buy gold and sell it failing to follow through on promises or meet customer satisfaction. One of the most shocking cash for gold scams shows that some companies lack enough knowledge to be able to identify precious metals, even when they are clearly authentically marked as such. Other scams have involved low-ball pricing, refusals to return items, complicated processes for getting items back, missing items and switched items.

If you want to sell your gold and get some of the best prices, be sure to do your homework on companies that buy gold as you would with any major sale. You want to work with a reputable company that treats customers well. Look for reviews not only on their buying side of business, but on their selling side, too.

If you want to buy gold and then sell it for a profit, keep a close eye on the gold market and make sure you get your pieces examined by a professional before purchase or resell. When you find several companies that advertise “we buy gold” check out their reviews on yelp, the Better Business Bureau or in consumer focused forums.

Contact the chosen companies to get price quotes on your gold. Be sure to read the fine print and pay attention to what they tell you about your items. If they are lacking in knowledge or the price seems low, you may be better off using a different company. You want to contact multiple companies because their terms, offers and knowledge can vary dramatically. In fact, there can be hundreds of dollars in difference in price quotes between companies. Price is not the only consideration, though. You want to review their process for purchase, return and complaints before completing any transaction with them.

Bear in mind that you can sell broken gold jewelry and old electronics (which sometimes have gold components inside) to some online gold buyers. Finding a reputable company that deals with these items as well is to your benefit as it opens up more opportunities for you to sell gold for a profit. This is because you can usually pick up broken gold jewelry and old electronics for a very low price, if not for free. You may even have some of these items sitting around your own home collecting dust. Rather than throw them away, add them to the collection of gold items you wish to sell for profit.

The reason you can sell these items that would otherwise be considered junk, for a profit is because the buyers melt down the gold from them or sell the items to those who do. The buyer’s website may list specific items, brands and models for old electronics they will buy for the gold, or you can contact them directly about specific items.

With some careful planning and research, your foray into the world of buying and selling gold can be a fun and profitable one.