Gold ‘recycling’ became big business during the recession – hardly surprising, given that the price of gold always rises during times of economic uncertainty.
But some of these gold trading companies had been around for years – and you can be confident that established jewellers are going to be trustworthy in their dealings.
However, some companies are there just to make a quick profit and they may once again rear their ugly heads once gold prices start to rise.
Unsurprisingly, these short term operations are unlikely to care much about fairness, customer service or their company’s reputation – they just want to make a quick buck and get out. In 2011, the Office of Fair Trading (OFT) put pressure on cash for gold companies to clean up their act and hopefully that should mean fewer of these fly-by-night operations are able to take advantage of any future economic downturn.
It’s not that dedicated gold trading companies can’t be trusted – it just pays to use your common sense when selling gold for cash.
- Have they got dependable testimonials and positive media coverage?
- Have they been trading long?
- Google the company and check chatrooms and forums online and see what turns up.
- If you’ve any doubts, check with Trading Standards to see if they’ve received any complaints about that particular company.
- The price that a company quotes on its site is not necessarily the amount it will try and pay you. With some gold-trading websites, you can get as little as 20% of the market value of your gold.
- Be especially wary of those sites that don’t reveal their price list. Some sites with big marketing budgets that advertise on TV are particularly guilty of this. All too often, these sites pour their money into marketing, rather than ensuring the consumer gets a decent price.
- Keep an eye out for the Gold Standard logo which signals that the jewellers or postal site abide by the voluntary code of conduct set up by the National Association of Jewellers. This is backed by the Association of Chief Police Officers, the Trading Standards Institute and the National Measurement Office and so will give you extra confidence in your transaction.
- Bear in mind that the price of gold changes daily, so the quotes you get will often vary slightly day-to-day.
- It pays to remember that gold is valued in dollars on the markets, so even if the value of gold rises, British sellers can lose out should the pound be weak.