Some consumers may be tempted to cash in by selling old jewelry, coins or scrap gold online,at a home “gold party,” or at local jewelry or coin shops. However, not just any dealer can be trusted.
The BBB already has received more than 500 complaints against gold, silver and platinum dealers this year. The number is well on its way to matching or exceeding the 581 total complaints in 2010.
“Consumers need to be on the lookout for less than reputable sellers,” Michelle L. Corey, BBB president and CEO. “Many of the complaints we receive stem from deceptive advertising or delivery issues, where the consumer ends up receiving far less than what they thought their gold was worth.”
The BBB has following these tips for those contemplating a gold transaction:
Find a trustworthy appraiser. If possible, go to someone locally whom you know and trust. Always check with the company’s BBB Business Review first at www.bbb.org. The BBB suggests obtaining two or three appraisals to compare prices, prior to any sale.
Don't expect to get the full price of gold traded in commodities markets. The ounce quote is for pure gold only. For instance, 14-karat gold is composed of just 58.5 per cent gold. Ask how much the company’s going rate is for each ounce of each karat you are sending. The lower the karat, the less the gold content.
Don’t allow the dealer to weigh jewelry of different karat values together. Some dealers will weigh all jewelry together and pay you for the lowest karat value. Separate your jewelry by karat value before attending a gold party.
Don’t let anyone steal your diamonds from gold pieces. Single gold stud earrings might be worth $5 or $10, yet diamonds in the earrings can be saved. Some are too small, and the labor to remove them might exceed their value, but engagement ring diamonds, for example, should be given a value separate from the gold.
Know the terms and conditions when sending items by mail. Make sure your items are insured when being shipped, so if they are lost you can recover the value. Obtain appraisals prior to mailing items, so if they are lost you have proof of their value. Check the company’s policy on reimbursement if they lose your product. Many limit their liability. Make a list of all items included in the package, keep a copy for yourself, and put a copy in the envelope. Take a picture of the items you are sending, including any identifying marks.
Ask about the company’s guarantee if you are not satisfied with the price offered. Can you get your product back if you return the check? Many companies melt down the items in 10–14 days. If you send the check back, send it “return receipt requested,” so you have proof when it arrived at the company.
More consumer tips and BBB Business Reviews are available atwww.bbb.org
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