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Beware: not all gold buyers are created equal

Beware: not all gold buyers are created equal

Recently, the strong value of gold has prompted a rash of ‘gold-by-mail’ and ‘gold party’ firms to appear out of the woodwork. Unfortunately, a goodly portion of these firms are operating on consumer ignorance as to the true value of their items. The much marketed Cash4Gold company openly states on their website that:

“Cash4Gold values material based on its scrap value (the value of the precious metal in an item once it is melted down in the refinery). While other buyers, including local jewelers or pawn shops, might pay more for a particular piece of jewelry…” (emphasis added)

Not only do they admit to paying less in many instances, they also clearly state that they give no value for diamonds or superior craftsmanship.

Channel 10 news from San Diego sent 4 identical gold items to: Goldkit, Cash4Gold, Getgoldcash and a local pawnshop. Goldkit offered the lowest at $2.80 for the ring whereas the pawnshop offered the highest at $18.50 (over 600% more for the math challenged). Link: http://www.10news.com/news/17913343/detail.html

As another risk, when parcels are shipped through the mail Cash4Gold insures to a maximum of $500 – hardly a large value when shipping gold and diamonds by mail. Any settlement for loss could take weeks or months.

Gold-buying parties involve their own level of risk. You are inviting strangers into your house to examine your jewellery. Pressure is made to sell on the spot because the host/hostess receive a portion of the profits. Have you price compared against other buyers to see how fair of an offer you are receiving? How can you be getting the ‘best price’ if the firm admits they are paying the host a portion of the value – shouldn’t that money go to the seller?

Our advice for those who are looking to sell gold:

  • Premier typically pays more per item than mail-order or gold party agents. 100% of the offer we make goes to you, instead of losing a portion to the party ‘host’. We evaluate diamonds, craftsmanship and other factors to determine a more realistic price.
  • Premier pays cash, immediately. No waiting to book a party or for a cheque to arrive in the mail.
  • Premier is secure. There’s no risk of loss by mail or inviting strangers into your house to evaluate your jewellery.
  • There’s no pressure – price check against as many firms as you like and pick the one who gives the best offer.
  • Premier is licensed and regulated. Unlicensed and unregulated gold buyers facilitate the disposal of stolen jewellery by failing to take ID, hold items or report transactions to the police. Support legal business.

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