Scrap Gold Prices Are at All Time High
Caveat emptor - buyer beware. Most jewelers and gold dealers are honest, hard-working individuals who will treat you well. With scrap gold prices at all time highs, and not likely to fall anytime soon, the temptation is too great for some less than ethical people to try to part you from your hard earned money. Below is a common issue and some advice on what consumers can do to protect themselves from it.
This particular “scam” in the gold industry is one of many variations on the age old bait and switch. You see gold prices advertised on a website. You mail them your gold. They send you an appraisal for much less than you expected. What happened?
You just suffered from a bait and switch. In order to generate business, some dealers advertise high prices, but don’t list a price for minimal amounts of gold. Minimal is anything less than one or two ounces. For these small amounts, they pay much less and the price isn’t listed on their website. While you can demand that they return your gold, most people don’t want to put up with the hassle. The gold is already at the dealer, so they just resign themselves to a smaller check and take the money. While this isn’t illegal, it is unfair and, in my mind, unethical.
How do you protect yourself? Read the dealer’s schedule of prices carefully as well as their terms and conditions. Do they offer you a money-back guarantee if you are not happy with their payout, or will they charge you a shipping fee to return your jewelry if you decline their offer?
Of course, some people are just simply not comfortable mailing their gold via USPS or FedEx. If that is the case, there are of course other options. The latest craze has been gold parties, where hosts invite their friends and family over for a fun party and you can sell your gold to a dealer at the party. While gold parties can be a great alternative, as with everything else, be careful who you sell your gold to.
