Scams to Avoid when Selling Precious Metals

When you hear the words “precious metals scam,” chances are that you think first about all the scams out there that victimize investors by selling them overvalued precious metals, precious metals “futures” that never reach expectations, or privately minted “collectible” coins that are wildly overpriced.

Image of "Cash for Gold" signholders for Specialty Metals blog post, Scams to Avoid when Selling Precious Metals, courtesy of Comedy Central and South Park.

Yes, all those scams are out there, waiting to profit from unsuspecting people who are all too willing to part with their dollars. But there is another kind of scam too, one that is just as dishonest . . .

Scams that fool sellers into selling their precious metals at prices that are ridiculously low

In most cases, these scams prey on individuals who don’t know the value of what they have, or who are in a hurry to get cash by selling items without investigating their value.

Scams to Avoid when Selling Precious Metal Items

  • Dishonest coin dealers and antique galleries can fail to disclose the collectible value of metal items. If you are selling an old gold coin, for example, they could offer to pay you for only what the gold in it is worth, not for its collectible value. Or if you bring in a silver candelabrum, they could weigh it and offer you only a few hundred dollars when it is really a valuable collectible that is worth tens of thousands of dollars.
  • Bait-and-switch precious metals recyclers can misrepresent the quantity of precious metal that is present in items that are made of alloys. Because it is hard for the average seller to know how much gold, platinum or other precious metal is really contained in a piece of jewelry or other items, it is all too easy for unscrupulous recyclers to dupe them.
  • Dishonest dealers can apply artificial time pressure to sell. They make up tales about why today is the best time to sell an item that contains precious metals – they say that gold prices are about to fall, that a foreign market is about to close, or make up other hard-sell tales. Their real aim is to get sellers to part with items before they have time to find out what they are really worth. The best strategy to fight them? When a dealer tells you to hurry up, that is the time you should slow down.

Deal with an Honest and Reputable Gold and Precious Metals Refiner

Specialty Metals has been the top choice in the US for secondary refining of Gold, Silver and Platinum Group Metals for more than 32 years, for companies in the industrial, electronic, jewelry and mining sectors. We’re accredited by the Better Business Bureau and rated by Dun & Bradstreet. We’re also members of the International Precious Metal Institute (IPMI).

If you want to sell your precious metals without being subjected to malarkey – or worse – we welcome your call at 800-426-2344.

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What You Need to Know about Recycling Alloys of Precious Metals
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How to Get Top Dollar for Silverware and Gold Jewelry
The Confusing – and Very Profitable – World of Gold Alloys