With gold hovering around $1,000 per ounce, more and more people are trading in their old gold to pay for everyday necessities. As the number of sellers rises, so do the complaints with government watchdog groups. The worst ones are the companies who advertise on TV that you send your gold to.
Complaints include ridiculously low prices, low weight and lost packages. Often these companies leave out pertinent info such as their phone number so you can't even call them!
The best way to protect yourself from getting taken advantage of is to know whom you are dealing with and what their experience is. Not all buyers are unscrupulous and those that are honest are more than happy to provide free information such as the current market prices. Some of them will even come to your home or office, which can save you a lot of effort.
Here are a few pointers to help you find a reputable scrap gold buyer:
1) Know how long the company has been in existence and who owns the company.
2) Get the physical address and phone number for your records if there is a problem later on.
3) Ask if the company is involved with the local community. It's a good indication if they are liked and trusted.
4) Contact the local Chamber of Commerce to inquire if they are members.
5) Ask if they have a website and what professional affiliations they have.
6) Visit their website and see if they post their scrap gold buying prices. If they don't, find another buyer!
What to expect when you sell:
First off, gold comes in different purities. Pure gold is 24 karat; 18 karat gold is 75% pure, 14 karat gold is 58% pure and 10 karat is 41.6% pure. Dental gold is usually 16 karat and therefore 66% pure. Let's assume you have 1 ounce of 18 karat gold jewelry. That would mean that if pure gold is trading at $1,000 per ounce, your jewelry is worth $750.
Do not expect to get 100% of the gold value. Buyers have numerous expenses that they must absorb including delivery of the gold to the refinery, assay and refining of the gold, record keeping and finally, their profit on the transaction. These expenses can add up to 25% of the gold value, which means you, would receive about $560 for your gold, or 75% of the actual value.
What to watch out for:
Never deal with a company that has no physical address or the buyer works from his home. Also bear in mind that if you choose a "big" buyer with "big" advertising budgets, someone is paying for those ads and it's you, the seller! If you call for a price quote and they tell you they don't quote over the phone, hang up and find someone who does. If the quote you get seems "really" good, it's probably just a come-on to get you in their door. Once you spend the time to get there, they know that you are less likely to leave without completing the transaction.
The old adage of "buyer beware" has been turned around; now the seller must be aware!
Courtesy of Omega P.M.
18 Village Square
Glen Cove, New York
516-759-6960
www.AllCoins.US
