With the price of gold at an all-time high, many people are looking for opportunities to sell their gold jewelry for quick cash. As tempting as it might be to sell off unwanted gold, it is important to practise due diligence.

This year alone, BBB has received more than 500 complaints against gold, silver and platinum dealers. This number is well on its way to reaching and surpassing 2010’s 581 total complaints against such dealers. 

Whether you choose to sell your gold through an online venue, at a home “gold party,” or at your local jeweller, you need to be on the lookout for not so reputable sellers. Many of the complaints BBB receive stem from false advertising and delivery issues. Most often consumers are dissatisfied when they realize the appraised value of their jewelry is far less than what they thought their gold was worth.

BBB recommends following these tips to ensure a “golden” gold transaction:

Find a trustworthy appraiser. For an appraisal, if possible, go to someone locally whom you know and trust. Always check with BBB first at www.bbb.org. 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 $1,700 per ounce, you aren’t going to be paid $1,700 for every ounce of gold you have. Ask what you will be paid (if an online company, make sure you ask for specifics and give details on items you’ll be sending). Understand that the ounce quote is for pure gold only.

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 and may be worth much more.

Know the terms and conditions when sending items by post. Make sure your items are insured when being shipped, so if they are lost you can recover the value. Obtain appraisals prior to mailing items, so if they are lost you have proof of their value. Check the company’s policy as to what they will reimburse 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 cheque? Many companies melt down the items in 10-14 days.

And remember, all that glitters is not always gold. Be realistic about your expectations. A piece of jewelry may have more sentimental value to you than it does monetary value to an appraiser.

For more advice, tips, and alerts, or to check out a business, visit www.mbc.bbb.org (Vancouver) or vi.bbb.org (Vancouver Island)

OCTOBER 2011 SENIOR LIVING MAGAZINE VANCOUVER ISLAND
OCTOBER 2011 SENIOR LIVING MAGAZINE VANCOUVER & LOWER MAINLAND