With unemployment up, the price of gold hitting $1100 an ounce in the last thirty days, and many people outright “spooked” by the economy, you may be thinking it’s a good time to unload some gold jewelry. Maybe a few rings from your college years? A necklace from the 1980’s that just isn’t in style anymore? Or even a family heirloom that you’ve never been fond of. If that’s what you’re thinking, then there are lots of people ready to talk to you. Unfortunately, not all of them are scrupulous.
Scammers are on the gold-buying circuit, promising everything from “the highest per ounce price being paid” to “overnight cash back.” ”It’s easy,” they say, to “turn Jewelry into CASH”. But let me first say this: with the recession at full throttle, this is not the time to be making quick deals with people you don’t know.
Media representatives are reporting that consumers are being taken advantage of by unscrupulous gold buyers and it has been an expensive lesson to learn. In fact, to get a look what’s being written about them by former employees, check out the ComplaintsBoard.com, where someone claiming to be a former employee of Cash4Gold.com has offered their behind the scenes take on the company and… it ain’t pretty!
A TV station decided to try a few of the bigger name gold buying websites. They bought their own gold rings for $58 each. They sent them off to three different websites: www.cash4gold.com, www.goldkit.com, and www.getgoldcash.com. One of the sites returned $2.80. Another sent $2.92 (and then later “upped their offer, sending another check for $4.99) and a third sent a check for $7.63. They took the fourth ring to a pawnshop in the area and got $18 for it.
Now we all know that jewelry made of precious metals and gemstones are more expensive than gold by the ounce, because of the workmanship. (And thus, you can’t sell it to a pawnshop or anyone and get the value that you paid for it, because you as the purchaser are paying for a “work of art” which the repurchasing agent may not be interested in) but falling from the range of $58 to roughly one-tenth of the value is not evidence of the value of scrap metal; it’s evidence of that sellers are being caught at a severe disadvantage. (And I personally have never understood how you get your jewelry back, if you don’t accept their “offer?”) One reported scam states this… The catch is that the check is mailed to you very late and you can get your jewelry back or refund only if you contact the company within 10 days from when your check is dated (This begins with the time it takes for the accounts payables department to issue the check and also including the transit time for you to receive your check in the mail). The check is usually dated within 24 hrs of receiving your jewelry, but it is sent out a few days later. You usually receive your check around the 7th, 8th, or 9th business day so you may have only 1-2 days or none to ask for refund. If you try to contact company representatives, it is nearly impossible to get in touch with anyone. After the ten-day period has lapsed, you will be told that the item is already melted or it is no longer available for return. Save yourself a lot of frustration and just take your unwanted or broken jewelry to your local jewelry store.
KVJ provides consumers a safe, competitive and easy method to sell unwanted gold, sterling silver and platinum and some diamonds." KVJ’s pricing is competitive with any reputable dealer out there. "We could spend millions on television like the competition - or we could put the cash in our customer's pockets. We prefer to pay the customer higher prices," states David Hevia, president of KVJ.
If dealing with an online jeweler, check their credentials and BBB Rating.
And about the heirloom that you’re not so sure of? Keep it and sell the necklace from the 1980’s. The heavy gold will be back one of these days, but family treasures never go out of style.
gold