The cash for gold industry is renowned for trying to rip-off customers and here are some example of how they do it.
Pay For Gold Of Lesser Quality
Most gold sellers do not know the quality of the gold they send to buyers and the buyers know this.
Some of them will test the quality of the gold and then make a payment for the actual weight of the gold but for a lesser Karat value. This significantly reduces the payment to the customer and increases the profits of the gold buyer.
When you sell gold and receive a payment make sure the buyer includes both the weight and quality of the gold with the payment information.
Pay Low Until You The Customer Complains
One of the biggest scams is to send customers a very low payment amount, nowhere near what the real value of the precious metals is, and then wait until the customer complains.
Most gold sellers do not realize the value of their gold and jewelry and do not complain – which means big profits for the gold buyer.
When a customer does complain they immediately up the price until they find the very lowest price the customer will accept.
This is a very “shady” business practice and those gold buyer who do such things should be avoided.
Do Not Pay For Valuable Gemstones
There are some cash for gold companies that will automatically value any precious stones you send them (usually in your gold and silver jewelry) and pay you decent prices for them.
There are also some unscrupulous companies out there that will simply keep the gems and not pay you. Some of these even have fine print on their websites, carefully hidden, that states that any jewelry you send will be valued for the precious metal content only and they keep any gems stones you send them without making any payment to you for them.
These types of gold buyers must be avoided and this is the reason why you should ask any perspective gold buyer what their policy is when dealing with any gemstones you send.
The very best way of avoiding scams is to work with a gold buyer that has a good reputation and has proven they pay well and pay quickly. Simply read our cash for gold reviews and you will quickly see who to sell your gold to and who to avoid.
Some Videos Of Customers Getting Scammed