5 Tips for Avoiding Cash for Gold Scams

Cash for gold scams are tempting, because scammers promise to give you fast access to the money that you need. You may be one of many who want to sell your gold, because you bought it when it was worth less and now you stand to make a profit. Don't lose your investment, the gold itself, or the profit you could gain by falling for the cash for gold scam. Here are 5 tips to avoid them:

Tip #1: Avoid Selling Online

Weeding out the online scammers from reputable gold dealers can be difficult if you're new to buying and selling gold. Even if you're an experienced gold investor, you may have trouble with sophisticated scammers that won't steal your gold, but sell you short. Likely, there is a gold dealer in your area. Try to sell your gold to local companies where you can look the representative in the eye, get the scoop or references from local people on the company’s reputation, and be present with your gold as they examine it to make an offer.

Tip #2: Know the Value of Your Gold

A popular cash for gold scam is where you send in your gold and the company decides not to buy. The reason is that your gold is not worth anything, or so they say. The way that they make their money is by charging you money to send it back. If you know the value of your gold you can spot that you're the victim of the scam. If you take your gold with you to a local dealership or company you won't have this problem.

Tip #3: Get Paid Quickly

An experienced and reputable buyer will pay you cash for gold immediately. Scams make consumers wait for a week or more. If you're waiting too long to get paid, there's a problem. A reputable online company should appraise your gold and send you money within 48 hours of receiving it. A local company should be able to appraise it while you're there and pay you before you leave.

Tip #4: Read Reviews

You can avoid dealing with fraudulent companies by doing your research. Read reviews about the companies you want to sell your gold to. You're looking for companies that buy gold from consumers for top dollar and you should avoid companies that will steal your gold or offer you a low amount. Online reviews can be tricky to weed through, because some companies hire people to post glowing reviews online. Start by reading the negative reviews and looking for patterns. Research the same companies on multiple review websites to see if the complaints and positive reviews are consistent.

Tip #5: Look for Price Match Offers

It would be difficult for a company to offer a low ball offer if they also offer a price match guarantee. That's because they know that a percent of their customers will get quotes from other companies first, before dealing with them. The word would get out if they engaged in scamming others by making low offers.

You’d be better off keeping your gold then falling for cash for gold scams. Take your time to do your research to get the best deals.


blog comments powered by Disqus
Scottrade