Saint Paul, MN - September 13, 2011 - As global markets suffer declines, worried investors are seeking safe havens for their funds. Some are moving away from the stock market and into gold, in the hopes that their money will grow. Others are looking to cash in on the gold they own, for some extra cash or to make ends meet. With the price of gold (Au) near all-time highs at more than $1, 800 per ounce, the Better Business Bureau of Minnesota and North Dakota (BBB) advises consumers to do their homework before trading their gold for cash.
Many consumers are looking to sell their gold jewelry through online venues, at home "gold parties" or local jewelers. However, not just every dealer is trustworthy. This year alone, the BBB has already received more than 500 complaints against gold, silver and platinum dealers.
"Consumers need to be on the lookout for disreputable sellers," said Dana Badgerow, president and CEO of the BBB. "Many of the complaints we receive stem from deceptive advertising and situations where consumers end up receiving payments far less than what they believed their gold to be worth."
The BBB recommends following these tips to help ensure an 'Au-some' gold selling transaction:
Find a trustworthy appraiser. If possible, seek appraisals from someone locally whom you know and trust. Always check businesses or appraisers with the BBB first at
www.bbb.org. The BBB suggests obtaining two or three appraisals to compare prices, prior to any sale.
The true price of gold may not be what you receive. If gold is worth $1,813 per ounce, you aren't going to be paid $1,813 for every ounce of gold you have. Understand that the ounce quote is for pure gold only. For instance, 14-karat gold is composed of just 58.5 % gold. Ask how much the company's going rate is for each ounce of each karat you will send; the lower the karat, the less the gold content. Ask what you will be paid prior to sending gold away in the mail. When dealing with an online buyer, ask for specifics and provide details on the items you plan to send. Be sure to insure your package.
Don't let jewelry of different karat value be weighed together. Some dealers will weigh all jewelry together and pay you for the lowest karat value. Separate your jewelry by karat value before attending a gold party.
Don't let anyone steal your diamonds from gold pieces. Single gold stud earrings might be worth $5 or $10, yet diamonds in the earrings can be saved. The labor to remove small diamonds might exceed their value, but engagement ring diamonds, for example, should receive a value separated out from the gold.
Know the terms and conditions when sending items by post. Make sure your items are insured during shipping, so you can recover the value of lost items. Obtain appraisals prior to mailing items, so if they are lost you have proof of their value. Check the company's reimbursement policy if they lose your product. Many limit their liability. Make a list of the items included in the package, keep a copy for yourself, and put a copy in the envelope. Take a picture of the items you are sending, including any identifying marks.
Ask about the company's guarantee if you are not satisfied with the price offered. Can you get your product back, if you return the check? Many companies melt down the items in 10-14 days. If you send the check back, mark it "Return receipt requested," so you have proof when it arrived at the company.
For more tips you can trust, visit
www.bbb.org/us/bbb-news.
