Council Warns On Gold Scams

15^th March 2010

The current recession, coupled with the high price of gold, has led to a boom in the second hand gold market. But Trading Standards are warning consumers to take care if they are tempted to sell their jewellery to raise cash. Current market conditions have led to some companies offering to buy at prices well below the true value and have brought with them the opportunity for con-artists and scammers to take advantage.

As well as national firms advertising on television and online, a recent trend has been for itinerant traders to distribute flyers or place adverts in local areas for purchasing events at hotels and public halls or possibly offering to visit people at their homes. In either event there can be risks for the unsuspecting consumer.

Cllr Craig McLaughlin, West Dunbartonshire Council Spokesperson for Corporate Services says: “It can be tempting to respond to an advert offering the opportunity to cash-in on your unwanted gold jewellery, particularly if you’re struggling to make ends meet, but there can be a huge variance in how much different dealers will pay. Which Magazine has  just done a secret shopper test on this and the difference in monetary values offered were ridiculous in the extreme, but unless consumers are in some way misled there’s not much Trading Standards can do, so it’s important for consumers to shop around.”

Postal gold services can be seen as a convenient way of getting some extra money quickly. However, often consumers are only given a short time to accept or decline the money offered by the company. Some consumers have found themselves wanting to reject an offer but unable to contact the trader or return the cheque as no address has been given in any paperwork. Unless you act quickly you could find yourself without your gold and with very little money.

Trading Standards Section Head David McCulloch says: “We have received complaints from consumers who were very disappointed with the offers they got. One woman was offered less than £20 for four gold rings, a gold bracelet and a gold watch. Another woman was offered only £5 for a gold ring, earrings and two bracelets. In both cases they rejected the offer in good time but experienced difficulty and delays in the trader responding.”

To ensure that you obtain the best value for your jewellery and don’t become the victim of a scam Trading Standards advises the following:

• Beware of responding to adverts or flyers, particularly where the business has no fixed premises address

• Shop around and try to get two or three quotes for the value of your gold before you sell

• If you send your gold in the post take a photo of it in case it goes missing

• Be sure that you know who you are dealing with and how to contact them if problems arise.