As stock markets plunge in the
wake of the U.S. credit rating downgrade, gold prices continue to soar, now
topping $1,700 an ounce.
This new high and increasing demand for the precious metal makes it very
tempting for consumers to trade their unwanted jewellery for cash. Options to
sell gold online, at in-home ‘gold parties’, or through local jewellers
continue to gain in popularity, but the BBB would like consumers to think
before they try to cash in on the gold rush.
BBB suggests consumers consider the following before selling your gold:
Find a trustworthy appraiser. For an appraisal, if possible, go to
someone locally whom you know and trust. Check with the Better Business Bureau
at mwco.bbb.org. The
BBB suggests obtaining two or three appraisals to compare prices, prior to any
sale.
The true price of gold may not be what you receive. If gold is worth
$1,700 per ounce, you aren't going to be paid $1,700 for every ounce of gold
you have. Ask what you will be paid (if an online company, make sure you ask
for specifics and give details on items you’ll be sending). Understand that 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 let jewellery of different karat value be weighed together. Some
dealers will weigh all jewellery together and pay you for the lowest karat
value. Separate your jewellery 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 labour 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 post. 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 as to what they will reimburse if they lose your
product. Many limit their liability.
- Make
a list of the 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 cheque? Many
companies melt down the items in 10–14 days. If you send the cheque back, send
it “return receipt requested,” so you have proof when it arrived at the
company.