Don’t Get Ripped-Off Selling Your Scrap Gold

Thinking of selling scrap gold to a dealer who advertises on TV or in the press? If they don’t publish the actual prices they pay, you could be making one very expensive mistake!

Adverts from companies wanting your scrap gold are cropping-up all over the place. Full page adverts now regularly appear in national newspapers and slick TV adverts can be found on both terrestrial and satellite channels.

At first glance, these adverts will have you believe that you’ll receive the best price for your gold if you use that company.

The sad reality is that the companies advertising in the national newspapers and on TV generally pay some of the lowest prices around.

How to spot a low paying scrap gold dealer

  • Large adverts in the national press / advertising on television
  • Company sends you a ‘free’ shipping envelope in to send your gold in
  • Web site doesn’t quote what is paid (per gram) for scrap gold.

High Profile Media Advertising

Make no mistake, advertising in the national press and on television is extremely costly. For any company who advertises in this way, this is likely to be their single most expensive operating cost. Inevitably, this cost needs to be recouped from the scrap gold profits.

Free postage ‘Gold Kits’

Are they free? Of course not! But then, if you’re a dealer paying as little as 20% of the value for scrap gold, it’s a worthy expense.

Published scrap gold rates

Does the company publish the price they pay (per gram) for scrap gold? If they don’t, ask yourself one simple question, “why not?”

Of course, the answer is obvious… If they did, you would be able to work out how little you’ll be paid and so go elsewhere.

These companies rely on a few simple facts:

  • You’re probably unaware of the true value of your scrap gold
  • After seeing their glossy advert of slick TV commercial you’re unlikely to shop around
  • Although offering a ‘no quibble guarantee’ very few customers ever request their items to be returned once payment has been issued.

We recommend you only consider dealing with a scrap gold buyer if they publish their prices. Make sure you have read and understand their Terms and Conditions and try to find independent, verifiable customer testimonials on 3rd party web sites and forums.

Daily Telegraph – Gold: are dealers profit margins too wide?

One Response to “Don’t Get Ripped-Off Selling Your Scrap Gold”

  1. Mary McGuire says:

    Thank you for this article. I thought the TV advertisers were cashing in on peoples ignorance and this articles seems to validate my belief.

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July 17th, 2009 1 Comment » Selling Tips |