Cash For Gold: How To Avoid Getting Duped

With world gold prices soaring in the midst of another global financial wave of turmoil, experts are warning people that seek to cash in their jewelry to be cautious concerning those they transact with. Similarly, the festive season is fast approaching and many will be at the pawn or jeweler's shop to dispose some gold item for the needed cash. Before you head that direction, take a look at these steps and word of caution.

Check Your Gold For Hallmarks

Hallmarking is generally any distinguishing trait or characteristic on precious metals. Before you dispose your gold articles, make sure you have verified its hallmarking. This way, you will be having an estimate of its value. You can verify if your potential buyer is party to the international standards on hallmarking laid down by the Vienna Convention 1972 through their website. Alternatively, you could visit the World Gold Council (WGC) for more insights on this.

Hallmarking generally guarantees that jewelry has been tested and that it meets certain set quality standards. The hallmarking ought to contain jeweler's mark, year of marking, fineness, code letter and hallmarking center mark.

Melted Gold May Diminish In Value

If you are selling cash for gold, be aware that the dealers will only pay you for the actual gold content and not for other artistic or ornamental attributes contained therein. The other precious stones may be of no value to them. Make sure that you discuss everything with the buyer prior to agreeing to sell your gold items or have the precious stones removed first.

Confirm The Karat Content

Gold is a soft metal and has to be hardened by the addition of other metals like zinc and silver before it makes jewelry. The karat content informs you about the purity level of your gold. A higher karat count means the more pure is the gold and hence more valuable when selling. Therefore don't sell your gold unless you know the karat content. Pure gold stands at 24 Karats or 99.9% purity and 999 fineness.

Verify The Reputation Of Dealers

Generally, regulations internationally require that you identify yourself when selling gold. Similarly insist on them also identifying themselves by showing you their certifications and trading licenses. This ensures that you are not abetting money laundering. Insist on getting an official receipt for any gold sold.

Don't Sell When Under Pressure

While selling make sure that there is no pressure coming from the buyer or salesperson. G. Jeffrey MacDonald writing for the Christian Science Monitor in December 2010 in an article headed "Want to sell your gold, silver jewelry? Research first", warns that to get the best prices for gold, find out its weight and purity, then take your time and compare the offers.

Stick to these steps and words of caution and odds being duped get reduced dramatically. Gold is basically a costly item and its prices have in the last one decade almost tripled in terms of value. It pays to be careful and not live to regret later after the deal has gone sour. The trick is doing your homework comprehensively before you engage the buyers and online resources are plenty for this.


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