With 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?
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.