Common Cash For Gold Fraud Cases And How To Avoid Being Scammed

Fraud and scam cases related to the precious metal business are a common phenomenon today. Getting underpaid for your valuable nuggets is just one of the many rampant fraud cases you may encounter in the highly profitable gold business. In order to avoid losing your hard-earned cash, you must be aware of the many possible fraudulent means used by unscrupulous gold dealers.

In a broader perspective, a gold scam refers to the act of defrauding or swindling a seller, an activity that is so common. This is often seen when gold prices are hitting record highs, yet sellers aren't aware of the prevailing rates. You can easily get defrauded of the true value of your gold jewelry, coins or gold bars, if you deal with an untrustworthy buyer.

Common Gold Fraud Cases

Big and small cash for gold cases result in huge financial losses for both sellers and buyers. Some of the most common cases involve sellers rejecting the commodity and in turn asking for a shipping back fee. A research done on most of the past traders, by ConsumerAffairs, reveals many other cases of gold scams. There have been several cases of gold merchants showing an intention to buy the commodity only to disappear with the precious metals.

Utilizing the loophole that exists as a result of the distance between the buyer and seller, the fraudsters will deny receiving a consignment. Others can even allege that the jewelry isn't made of pure gold and end up paying extremely low prices. A meager payment for a valuable piece of gold constitutes a scam in addition to only paying for selected commodities in a much bigger package.

While other fraudulent companies may confirm receipt of the goods, they may default in payment to the seller. Efforts to get the payment or shipping back of the product would be futile as they will issue lengthy and tedious procedures meant to discourage and frustrate you. However, even with the exposure of such cases of gold scams, fraudsters still tend to come up with more insidious schemes to enrich themselves at the expense of innocent sellers. Therefore, having the necessary knowledge as a seller on how to avoid them is very vital.

How to Avoid Gold Scammers

As long as you know the legitimate buyers to deal with, the likelihood of being swindled will be very minimal. In fact, the surest way to avoid losing your expensive items is dealing with a reputable buyer. For a start, you need to check out referrals, online review sites and shop around. Whether you intend to deal with an overseas firm or that next-door pawn shop, these background checks can benefit you a great deal and save you from any impending fraud.

Rogue buyers often display very attractive television advertisements, posh websites, street posters and promise unbelievably higher pay for your gold. After fulfilling their objective of swindling you, they will swiftly vacate their premises or change their contacts. To avoid losing all your valuable items or being underpaid it's highly recommended that you only deal with a reputable firm, often with a proven track record.

Following a gold scam case in Australia, the best and recommended way to combat the vice is reporting the incident to the relevant authorities. In this regard, the Queensland Government's Fraud and Scams department can be of help in dealing with these scammers.


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