Scams happen for the simple reason that it’s profitable. Given the disparity in information that often exists between precious metal buyers and sellers, most sellers are dependent on the buyers’ honesty to get fair value for their gold or silver. Scammers can exploit their customers trust if the sellers do not exercise appropriate caution.
Almost all gold and silver purchasing scams are based on persuading you to sell your gold or silver at less than its fair value.
Many different scams exist and are created each year as old, and new, scammers continue to exercise their creativity.
Examples of Precious Metal Purchasing Scams
Here are some of the most popular methods that unscrupulous buyers might use to try to cheat you:
Inaccurate appraisals of your gold or silver
The simplest and most straightforward gold and silver buy/sell scams happen when the buyer gives you inaccurate appraisals of your gold or silver and offers a price that is significantly below the market value.
Of course, all buyers will attempt to get you to sell at the lowest prices possible in order to earn higher profits, but honest buyers will usually settle around a range of similar prices based on the actual value of your gold or silver.
The easiest method for you to combat such attempts is to research the current melt price of your silver and/or gold, try to identify the amount of silver and gold in your items, or even get an appraisal of the gold or silver that you are trying to sell. This way, if you are offered a price that is significantly below the estimates made by other potential buyers, you’ll know that you are being cheated.
Temporary Locations
Unscrupulous buyers will sometimes move from place to place in order to avoid complaints and the difficulties that come from their poor reputations. These buyers will enter a city, start up a massive marketing blitz promising high prices for used gold or silver, and then set up temporary shops for customers who fall for their tricks.
The best method to avoid these buyers is to sell your gold or silver only to established businesses since a long-time presence is a strong indication that the owner uses honest business practices.
Lost Silver / Gold
Some buyers will try to cheat you if you send them your gold or silver through the mail. These buyers might try to avoid payment by claiming that your mail package never arrived or offer you less than fair prices on the received gold or silver and leave you with no recourse for getting your precious metals back.
Your best option is to avoid sending gold or silver through the mail if there is no method offered to track your package so that you can confirm their arrival. Also, consider insuring the gold or silver that you are sending out.
Weighing Silver / Gold
You’ll need to pay attention to buyers when they weigh your gold or silver. In some cases, buyers who are not legitimate might be using fixed scales in order to avoid paying you fair value. In others, legitimate buyers might simply be using a weight-based payment system using different units than what you were expecting. You can avoid the first by only going to legitimate buyers and the second by paying careful attention to the buyer’s terms and conditions.
Silver and Gold Exchange was established in 2007 to offer a safe alternative for precious metal sellers, both new and experienced. We joined the Better Business Bureau, Accredited with an A Rating, to show our customers that we adhere to the high standards of business practices expected of all BBB Members.
To help circumvent concerns related to sending your silver and gold through the mail, we offer a free trackable and insured shipping label, and confident in our purchase pricing, we also offer to ship back your items at no charge if you reject our offer.
Learn more about Silver and Gold Exchange.
References:
- http://abcnews.go.com/Business/selling-gold-scams-beware-tips/story?id=14309128#.UBXupJEjiSo
- http://consumer-law.lawyers.com/consumer-fraud/Scam-Alert — Be-Careful-When-Selling-Your-Old-Gold.html
