How Can I Avoid Getting Cheated by A Company That Buys Gold?

Most small companies are run by businessmen and businesswomen who are committed to doing business honestly. Even if you have a dispute with them or they have done something that strikes you as less than honorable, they are likely to try to “make things right.” After all, they want to maintain a good reputation and avoid getting negative reviews online.

Yes, that is true for the majority of businesses. However, it seems that disputes often arise between those roadside “We Buy Gold” companies and their customers. We are sorry to make that observation, because we do not like to say negative things about companies of any kind. However, here are three stories we have recently heard about disputes between customers and “We Buy Gold” companies where they have done business.

  • No refund or satisfaction possible. A customer says, “I dropped off a gold bracelet. The verbal agreement was that they were going to test it and then make me an offer for the gold it contained. But when I went back to conclude that agreement, the bracelet was no longer there, and they offered me $75.00 cash on the spot for it – take it or leave it. This was shady.”

  • The place had closed. A customer explains, “I sold some gold jewelry to one of these stores but when I went back a month later to sell them some more, the place was closed. That didn’t do much to convince me that I had gotten a good price for what I sold them the first time.”

  • The physical layout of the place was troubling. “I put a piece of gold bullion on the counter and the man who worked there picked it up and took it into a back room for evaluation instead of examining it on the counter where I could watch. This made me extremely worried, so I demanded that they give it back to me and then I left while the salesperson was angrily asking me to stay. This was not a good experience.”

Steps to Protect Yourself and Your Investments

Here are some basic steps to take. Please note that the same preventions can apply to doing business with a pawn shop.

  • Do your research - Before you visit a company that buys gold, research the average value of the item you're looking to sell. For a general barometer of value, look for similar items that are for sale online. That will help you negotiate a fair price.

  • Check out any online reviews of the company – Do some research to be sure that negative comments have not been posted online. 

  • Read the fine print - Be sure to read and understand the terms and conditions of the company that buys gold before you do business with them. Consider interest rates, fees, and any other charges.

  • Ask a lot of questions - Don't be afraid to ask questions about the process and the company. A reputable company that buys gold will be transparent and upfront about their history and procedures.

  • Get a written agreement - Always get a written agreement that outlines the terms of the sale. This will help protect you in case of any disputes or misunderstandings.

  • Be wary of "too good to be true" offers - If a company that buys gold is offering you a much higher price than other shops, it's possible that they're trying to cheat you. One example? They sense you have a lot of precious metal scrap to sell, and they are trying to get you to bring it all to them. Use your best judgment and don't be afraid to walk away if something doesn't feel right.

If You Want to Sell Jewelry, Scrap or Other Precious Items, Call Us First

Specialty Metals Smelters and Refiners help investors get a prompt payout for their precious metals and precious metal scrap. We are here to answer your questions and help. Call our precious metal refiners at 800-426-2344.  

Previous
Previous

Should You Take Your Gold, Silver and Platinum Scrap to a Pawnshop Instead of a Precious Metal Refinery Near You?

Next
Next

What Kinds of Medical Scrap Are Easiest to Find Today?