Why cash for gold promises often fail to pay out

Cash for GoldWith world economies faltering but precious metals more valuable than ever, there have never been more businesses offering you cash for gold. And while a few are shining examples, many are thoroughly tarnished. So beware.

The bigger the glitz, the less you get

You may be tempted by the cash for gold companies that advertise a lot on TV or in the press, sometimes endorsed by celebrities. But all that advertising doesn’t come cheap. These companies fund it by making sure they have substantial profit margins. And they achieve that, by paying their customers less for their gold.

The same applies for companies with high street branches. They’ll make sure they’ve covered all their rent, rates, etc before parting with cash for your gold.

Cash for gold websites

You’re better off looking on the internet. But if you’re going to get the best possible return for your gold, it pays to be selective.

Never trust a company that doesn’t quote its true cash for gold prices on its website. They don’t, simply because their prices are poor. Although they may claim ‘top prices’ or ‘best prices’, those promises aren’t delivered.

Calculated to deceive

Some cash for gold companies appear more transparent, because they have calculators on their websites. Whilst the online ‘valuation’ may appear attractive, this won’t necessarily be the price you’ll be offered. With careful wording, you’re led to believe the price quoted is what you’ll get, in reality, it can be substantially lower.

Did you know, the price you receive from some companies can be as little as 20% of your gold’s real value?

Hidden fees

That’s not just down to poor rates, but also because of fees that many cash for gold companies bury in their small print. Typical examples are charging return postage if you don’t accept their offer, extra charges if you want payment by cheque, and fees for returning items that turn out not be gold. Some even charge their customers the refining fee for melting down the gold!

The golden rules

Faced with all this devious dealing, you might wonder if you’ll inevitably be ripped off when you want cash for gold. The answer, fortunately, is no. It takes a little detective work, but you’ll get genuinely the best price if you:

  • Look for a company that doesn’t spend fortunes on advertising.
  • Stick to companies that do business on the web.
  • Only use a company with an online calculator that shows you the genuine price you’ll be paid.

A reputable company will always pay you at least 90% of what your gold is really worth.

We hope our cash for gold article has been of use. We have a handy tool to calculate the real value of your gold and we’re always happy to answer your questions via email or telephone.

August 5th, 2011 1 Comment » Selling Tips |

Cats4Gold.com Gives More Moggy than Lolly to the Ounce

Get cats for gold!If you have unwanted gold lying around and are wondering who to send it to, there’s a new player in town who, instead of paying cash for gold, pays you in cats for gold!

Cats4Gold.com promises the best pawsible rates for your unwanted gold and pawsitively guarantee a fur exchange.

To highlight the underhand scams that occur in the ‘cash for gold’ marketplace, Gold-Traders has launched its Cats4Gold.com spoof website, which has “pussies galore” and is ready to swap them for people’s gold!

Cats4Gold.com is based on the idea that “if you send your gold to a company that doesn’t quote their prices up-front or has lots of hidden ’small print’, you might as well get the weight of your gold in cats…” Furthermore, in these austere times, gold isn’t as alluring as something that’s purring: bling really isn’t this season’s thing.

For some time, Gold-Traders (UK) has been spreading the word that the public can expect short shrift from scrap gold buyers who don’t publish the prices they pay per ounce or gram. In many cases, sellers could be receiving as little as 20% of their gold’s true market value. And, with the recession causing something of a ‘gold rush’ as people cash in on trinkets and jewellery, the grim reality of such a cat-astrophically wide rip-off is sure to give ‘paws for thought’.

No cats were harmed, mildly disturbed or even woken from their naps during the making of the Cats4Gold.com website.

You can read our full press release here:
Cats4Gold.com Gives More Moggy than Lolly to the Ounce

May 25th, 2011 1 Comment » Media, Selling Tips |

Tesco don’t recognise 21ct gold

When we wrote our Tesco Gold Exchange review (back in November), we speculated what a customer would be paid for Asian 21ct gold jewellery.

Well, it appears our suspicion was correct. We’ve just had confirmation from a customer who sent their 21ct wedding jewellery to Tesco’s for valuation and were offered a sum based on their 18ct rates.

Based on today’s prices, a customer sending 21ct gold to Tesco would be paid just 65.2% of its true value.

That’s a very poor deal!

May 25th, 2011 No Comments » Miscellaneous |

Simple Platinum Hallmark Guide

Platinum hallmarking was introduced in the UK in 1975 as a result of legislation brought about by the Hallmarking Act of 1973. Prior to this date, items containing platinum would often carry no markings or simply ‘Plat’ or ‘Platinum’ and would be of varying purity. 

A typical platinum hallmark

All platinum items weighing more than 0.5 grams must now carry a valid hallmark when sold in the UK. The photo on the right shows a typical hallmark. A platinum hallmark will consist of 3 compulsory and 3 optional stamps.

The three compulsory platinum marks

Sponsor Mark

Also referred to as the makers mark, the first stamp in the photo indicates who submitted the item for hallmarking. Each sponsor (maker) has their own unique stamp.

Fineness Mark

The third stamp in our example photo is the fineness mark. This tells you the precious metal content, expressed in parts per thousand. There are four recognised standards of platinum:

  • 850 (85% pure)
  • 900 (90% pure)
  • 950 (95% pure)
  • 999 (99.9% pure)

When identifying an item as being platinum, it’s important to check the shape and contents of the fineness mark. If the shape is anything other than what is shown below, it isn’t platinum. As you can see, our ring is 950 platinum.

 

Platinum fineness

Assay Office Mark

The assay office mark tells you which assay office tested and hallmarked your item. There are now four assay offices in the UK:

Assay Offices

Assay offices

 Optional platinum hallmarks

The following 3 marks are all optional. Under hallmarking legislation, there is no compulsorary requirement to show these additional marks, however they are often shown.

Traditional Fineness Symbol

If your platinum item has a purity of 950 or 999, it may display the traditional orb mark. In our example photograph, you can see the second stamp is the traditional fineness symbol.

Platinum fineness orb symbol

Orb

Date Letter

Date letters are optional and therefore not always seen (as in our example photograph). The date letter tells us the year the item was hallmarked. As date letters were standardised across all assay offices from 1975, it’s quite easy to read. Below is a chart of all date letters from 1975 onwards.

Hallmark Date Letters

Standardised UK hallmark date letters from 1975 onwards

International Convention Mark

An International Convention Mark is sometimes shown within the hallmark. It is a mark recognised by all member countries of the International Hallmarking Convention.

Platinum convention mark

Convention mark

Testing platinum

Without a valid hallmark, most jewellers and small scale gold buyers will not be able to accurately test the purity of platinum jewellery. Due to its inherent inertness, traditional ‘acid’ testing can only help determine if an item isn’t platinum, however you can’t for example differentiate 900 and 999 platinum.

High-end and specialist precious metal dealers use XRF (X-ray fluorescence) testing to accurately identify the platinum content of jewellery. Inductively coupled plasma, optical emission spectrometry is used by assay offices during the hallmarking process.

March 14th, 2011 4 Comments » Hallmarks, Platinum |

Sell Platinum Thermocouple Wire

Platinum thermocouple wire

Used in laboratories and in scientific instruments, platinum thermocouple wire is often used for measuring temperatures in-excess of 2000°C.

Due to its high value, thermocouple wire should always be recycled. You can sell your platinum thermocouples to Gold-Traders and receive payment on the day we receive your package.

You can check our scrap platinum prices, which are always up-to-date. The rates we display are the minimum prices per gram that we will pay you. If platinum prices drop once you’ve sent your thermocouple wire, we’ll pay you our original quoted rates (providing we receive it within three days of quotation). If our platinum prices increase, we’ll automatically pay you the higher rate.

To proceed, please fill out our claim form and follow our simple instructions in relation to postage and packing.

March 9th, 2011 2 Comments » Platinum |