Often, we receive phone calls from individuals who have had nasty experiences with postal or mail-in gold companies. Regrettably, there are many cash for gold scam fraudsters around. The truth is that gold buyers can con or trick you into selling your jewelry, via a whole range of methods. Here are some of the most common ruses employed by crooked gold buyers, to part you with your money. Be aware of these, and avoid becoming another victim.

Theft Scams

Here, customers will send their broken chains to the postal gold company, once they have received a quote and used the online calculator. After the gold company has weighed and valued the jewelry, they telephone the customer to verify the price (which is substantially lower than the valuation by the online calculator). Naturally, customers ask for their jewelry to be returned, and the company sends it back to them. However, the jewelry sent back will weigh less than it weighed when posted.

Sadly, this is very common practice with some postal gold firms. The firms know that they cannot make money from the transaction, so they clip off several links of the chain. Thus, although they have sent the chain back, they still earn a nice profit. Proving this has happened is very hard. If you intend to try out a postal gold firm, you ought to weigh your chain, etch a distinctive mark on both end links, and take a photograph of the items (try to include the etched links in the photograph).

Undervaluing and Under Weighing

If you appear as if you do not understand what the weight/purity of your gold is, many buyers will use that to their advantage. Simply put, permitting one gold dealer to value your gold, when you are not aware of its correct value, is a recipe for disaster. This ranks among the most straightforward cash for gold scam tactics out there. If you do not know that your necklace is 18 carat, a gold dealer may quite happily buy it from you like it was a 14 carat, or even a 9 carat.

Similarly, if you are unaware of your jewelry’s weight, a postal gold dealer may be quite happy to deliberately weigh your items incorrectly. On current prices, if they under weigh by only 1 gram of 9 carat, they have profited about $18.00. This would be a profit of $894.00 from stealing 0.5 grams from 100 customers.

Undisclosed Processing/Refining Fees

Each one of the numerous online postal gold dealers wants to claim that they will pay the country’s best rates. Suffice to say, offering the general public the best gold prices is an excellent unique selling point. Obviously, it is not possible for all of the country’s gold buyers to offer the best prices. There are several dealers who add undisclosed refining charges, or who quote live/spot prices on their online calculators. Most of the time, this will not be the real price you get. Thus, it is fair to call this a cash for gold scam.

Final Thoughts

It is always better to be over cautious than under cautious. If the dealer has countless testimonials on their own website, but no one seems to have heard about them anywhere else on the web, this is a sure warning sign. Do not be taken in by celebrity endorsements, or a high quotation. Do not be taken in by fictitious testimonials and reviews displayed on a dealer’s own website, or posted on a forum. Familiarize yourself with your gold and get it weighed and valued correctly by your local jeweler/gold buyer. This way, you can be confident that you understand exactly what it is worth.

It is best if you can be referred to a dealer by your family or friends. If your financial circumstances are difficult, and you would prefer that your family or friends didn’t know, be aware that Cash Gold Exchange has been providing 1st class customer service for almost 20 years. Visit our About Us page to find out more.

If you have been tricked by a cash for gold scam, then contact us and we will try to help. Also, you should tell the appropriate authorities about any illegal activities, if you think you have been conned by a gold dealer.

Request a free Gold Pack on this site to get the best price for your gold. Alternatively, drop into our Los Angeles office from 10:00 to 19:30 Monday to Saturday, and from 10:00 to 16:00 on Sunday.