Posts Tagged ‘Cash for Gold’

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 | Gives More Moggy than Lolly to the Ounce

Get cats for gold!If you have unwanted or scrap 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! 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 spoof website, which has “pussies galore” and is ready to swap them for people’s gold! 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 website.

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

May 25th, 2011 2 Comments » Media, Selling Tips |

OFT takes action against Cash for Gold companies

Back in January 2010, Gold-Traders reported that the Office of Fair Trading had launched an enquiry into the business practices of a number of online Cash for Gold companies.

Yesterday, the results for the enquiry were finally made public. As expected, the OFT have been highly critical over the way some of our competitors operate.

Three companies (CashMyGold, Cash4Gold and Postal Gold) have signed undertakings to improve their business practices. Two other companies who were also under investigation (CashYourGoldNow and Money4Gold) have since ceased trading.

The three companies named have undertaken to change a number of practices, including:

  • providing people with the option of receiving either a quotation for their gold which requires positive acceptance, or just a payment for their gold, and also displaying both options and the risks of each payment option clearly and prominently
  • providing consumers with clear information on other important features of the service, such as whether gemstones are purchased or returned and if the consumer sends a gemstone the risks of damage or loss
  • making clear, when referring to the ‘high price’ or ‘top price’ paid for gold, that the prices offered to consumers are based on the scrap or smelt value of gold.

Although the three companies named have all signed an undertaking to provide consumers with clear information on the prices offered for gold, we could only find this information on the CashMyGold web site. At the time of checking, they were offering £5.13 / gram for 9ct gold – that’s just 50% of market value, a very poor deal for the customer!

When calling Cash4Gold and Postal Gold, the company representatives refused to disclose what their current price per gram rates were.

Quite rightly the ‘Cash for Gold’ market has received some bad publicity recently. Unfortunately, there are many companies still trading who are out to make a fast buck and who give customers a very poor deal. Before selecting a company to sell your gold to, please make sure you can make and informed decision. You need to know what price per gram you’re being offered. You also need to know what will happen to the price offered if the gold market rates drop and you need to be aware of any hidden charges or fees you’ll be charged.

If you have any questions, or have gold to sell, give us a call. We have no hidden fees and our scrap gold prices are always available on this web site.

Link: OFT takes action against gold buying companies

February 15th, 2011 No Comments » Industry News |

What’s the REAL value of your gold?

When it comes to selling unwanted gold for cash, it’s a seller’s market right now. Dozens of ‘Cash for Gold‘ companies have sprung-up, all vying for your attention and hoping you will send them your valuables.

Sadly, the unregulated Cash for Gold market is a minefield of dodgy promises and appalling low prices. Take a look at any of the companies advertised on national TV. Their web sites will be full of slick marketing hype and promises of ‘top rates’, but you’re unlikely to find any information as to what the company will pay you, per gram for your gold.

How on earth can a consumer be expected to make an informed decision as to who to sell their gold to when so many Gold buying companies fail to disclose their rates?

Find out the real value of your gold

Before sending off your gold, I encourage you to work out its true value. We have a hallmark guide to help you sort your gold and once you’ve weighed it as accurately as possible, we can tell you what it’s really worth. Armed with this information, you can decide if the price you’re offered is a reasonable one, or not.

Try it now. Calculate the real value of your gold.

External articles
October 21st, 2010 No Comments » Selling Tips |