Don’t Get Scammed Cashing in On Gold



Don’t Get Scammed Cashing in On Gold Posted Thursday, June 11, 2009 by Luanne Kadlub Do you have an old gold necklace or bracelet that you haven’t worn for years? And do you have a utility bill or loan payment coming due and you’re wondering how you’ll pay it? With gold prices fluctuating between $900 and $1,000 per ounce on any given day, many people are looking at exchanging gold bangles for greenbacks. And the plethora of TV and magazine ads, special weekend events and the infinite number of Web sites set up to help make the exchange is a good indication that a lot of consumers are looking for ways to cash in. While many Web sites and businesses are legitimate — some are BBB Accredited Businesses — there are just as many or more that are scams. So before you rush to join the gold for cash frenzy, it’s important to know what you’re dealing with and what you can expect in return. If you want to sell your gold, it’s important to do your research and request a business reliability report from your BBB at wynco.bbb.org. It’s equally important to know what you’re selling. To get the best price, determine the value of the jewelry as a whole and not just the scrap value of gold. Some estate pieces — your grandmother’s broach perhaps — might fetch more “as is” than for its gold content alone. Dental fillings, gold teeth, bridges and crowns are usually 16 karat gold and can be resold as well. Some dental gold contains platinum as a hardening agent, and that boosts the value even more. Gold knickknacks and medallions are candidates for resale, too. Keep in mind that not all gold is created equal, which is why you first need to know your karats. The Federal Trade Commission requires that jewelry sold in the U.S. describe a karat fineness of the alloy. One karat equals 1/24 of pure bold by weight, which means that 14 karat gold is 14 part gold and 10 part other metals. Jewelry less than 10 karats cannot be legally sold as “gold jewelry.” If you’re mailing jewelry pieces, photograph the pieces, including any identifying marks. Make a written list of the items as well and keep one for yourself and put a copy in the envelope. And be sure to insure the items so you can recover the value if they are lost in transit. Your BBB also suggests to beware of large “expos” set up by out-of-town businesses to buy old jewelry. Advertisements for these events include a sense of urgency or limited-time offers and claims that they pay the highest available prices. But if you don’t do your homework, how will you know? And, your BBB advises that consumers should stay away from online scam artists who quote consumers high prices for gold items and then instruct them to send them to an “escrow service” or pay advance fees for the transaction via a money-wire service. Oftentimes these scams are operated overseas. Have you sold gold items recently? Did you get fair value? What advice would you give others? Next: Pawn Shops

Do you have an old gold necklace or bracelet that you haven’t worn for years? And do you have a utility bill or loan payment coming due and you’re wondering how you’ll pay it?

With gold prices fluctuating between $900 and $1,000 per ounce on any given day, many people are looking at exchanging gold bangles for greenbacks. And the plethora of TV and magazine ads, special weekend events and the infinite number of Web sites set up to help make the exchange is a good indication that a lot of consumers are looking for ways to cash in.

While many Web sites and businesses are legitimate — some are BBB Accredited Businesses — there are just as many or more that are scams. So before you rush to join the gold for cash frenzy, it’s important to know what you’re dealing with and what you can expect in return.

If you want to sell your gold, it’s important to do your research and request a business reliability report from your BBB at wynco.bbb.org. It’s equally important to know what you’re selling. To get the best price, determine the value of the jewelry as a whole and not just the scrap value of gold. Some estate pieces — your grandmother’s broach perhaps — might fetch more “as is” than for its gold content alone.

Dental fillings, gold teeth, bridges and crowns are usually 16 karat gold and can be resold as well. Some dental gold contains platinum as a hardening agent, and that boosts the value even more. Gold knickknacks and medallions are candidates for resale, too.

Keep in mind that not all gold is created equal, which is why you first need to know your karats. The Federal Trade Commission requires that jewelry sold in the U.S. describe a karat fineness of the alloy. One karat equals 1/24 of pure bold by weight, which means that 14 karat gold is 14 part gold and 10 part other metals. Jewelry less than 10 karats cannot be legally sold as “gold jewelry.”

If you’re mailing jewelry pieces, photograph the pieces, including any identifying marks. Make a written list of the items as well and keep one for yourself and put a copy in the envelope. And be sure to insure the items so you can recover the value if they are lost in transit.

Your BBB also suggests to beware of large “expos” set up by out-of-town businesses to buy old jewelry. Advertisements for these events include a sense of urgency or limited-time offers and claims that they pay the highest available prices. But if you don’t do your homework, how will you know?

And, your BBB advises that consumers should stay away from online scam artists who quote consumers high prices for gold items and then instruct them to send them to an “escrow service” or pay advance fees for the transaction via a money-wire service. Oftentimes these scams are operated overseas.

Have you sold gold items recently? Did you get fair value? What advice would you give others?

Next: Pawn Shops