Selling Your Gold? Top Tips For Avoiding Dodgy Dealers

With gold prices reaching record highs over the past 12 months, numerous gold buying companies have emerged around Australia offering consumers prices far below what is considered reasonable. Australia’s leading buyers of gold, The Gold Company, has witnessed a massive discrepancy between the prices reputable gold buyers are paying, and the money people are receiving for the same parcel of gold from companies that offer no expertise in the buying of precious metals.

“Different buyers may offer vastly different prices as a result of differences in cost structures, procedural efficiencies and profit margin requirements,” commented Roy Cohen, precious metal buyer from The Gold Company. “As shown recently on A Current Affair, prices for the same parcel of gold varied from $250 to $950; that is a difference of more than 350% between the highest and lowest price. That’s enormous! We’re proud to say A Current Affair nominated The Gold Company as the dealer offering Australia’s highest return for unwanted gold items.”

“While the industry does contain very reputable precious metal buying companies, there are dealers who are wildly undervaluing gold parcels, have poor customer service and are generally ripping off customers.

The Gold Company offers a few golden rules for selling:

• Do your research and know what your gold is worth. The weight and purity of your gold determines its value.
• The carat value is a unit for expressing the proportion of gold in an alloy on a scale from 1 to 24 (24ct is pure gold). For example, 18 carat gold is an alloy, containing 75 per cent gold. Most items are stamped with the carat value for that item.
• It is pretty easy to determine approximate value. Separate the gold into 9ct, 14ct, 18ct etc… Then weigh each batch separately. Multiply the weight by the percentage of gold in the batch (e.g. 0.375 for 9ct) and then multiply that by the gold price of the day. That figure, less the refining costs and profit of the buyer, is what you should be offered.
• Different buyers offer vastly different prices as a result of differences in cost structures, procedural efficiencies and profit margin requirements.
• Be aware that you may be offered significantly less than the retail price you paid for an item. The reason for this is because part of the retail price paid, incorporates the jewellery’s design and manufacture, as well as the jeweller’s profit.
• Compare prices and make sure you are dealing with a reputable and honest buyer. If you are not sure you are getting the right price, shop around.
• Make sure you deal with a company that gives you the option to accept or refuse the offer with no hidden cost to you.
• Make sure they have contact numbers listed for you to talk to someone and an address that you can visit their offices if necessary.

At The Gold Company, sellers can complete a form on the company’s website to obtain a prepaid Goldpak, which will transport the jewellery free of charge for evaluation, or they can take their gold items to The Gold Company’s off-street headquarters in Sydney’s CBD.

Visit us at: www.goldcompany.com.au

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