Selling Gold: How to Avoid Being Scammed

When the economy is in bad shape, gold prices increase. During these times, people with gold bullion bars are motivated to cash out and profit from their gold investments. However, not everyone knows how to sell gold properly.
If you are selling gold for the first time, you can sell either online or to a local jeweller. If you’re not careful, however, someone might take advantage of you. To avoid getting scammed, make sure to remember these tips:

Research for the current price of gold

Gold prices tend to change on a daily basis. So make sure you know the current price to protect yourself from deceitful dealers. You can search the Internet on the price of gold bullion bars before looking for a buyer.

Shop around

If you want to exercise greater control over the negotiation process, consider selling locally. Shop around for reputable local jewellers who buy gold bullion and ask them for an estimate. To make this more manageable, approach not more than three or four stores and then compare the prices they offer. This will provide you with a base price in case you eventually must solicit online.

Remember to read the fine print

Read and compare the terms and conditions carefully. Even with a legitimate site, mistakes can happen so do not forget to read the fine print. Read the policy of the buyer regarding reimbursements in the event they lose your gold during shipping. There are some buyers out there that offer limited liability.

Check the buyer’s credentials

Don’t be shy to ask a potential buyer for credentials. Legitimate buyers have licenses to buy gold. As such, he is also required by law to ask the seller to produce any government-issued ID such as driver’s license or passport. This is only meant to discourage money laundering activities as well as the sale of stolen merchandise. If your buyer is fine without seeing your ID, you may want to negotiate with another buyer.

After doing your homework, you are better prepared to sell your gold. When a buyer offers you less than what your gold s worth, take your business elsewhere.

About the author

Cathy Brunetti

Cathy is a law student in a university in the U.K. She writes blogs and reviews about constitutional law and house bills.