Every day it seems there is a new company with flashy ads advertising their service to buy old, unwanted gold and jewelry.
They all have happy people who sold their gold and are now holding a lot of cash in their hands.
This is a great image to sell a service but what does it say if you can not find out what they pay per unit of gold? If you are considering one of these services, you will find that doing a little bit of research will pay off.
Because I run a gold buying service, I have some insight and a few simple suggestions I would like to share.
First, it pays to shop around to find both the best price and the best service.
Hectic lifestyles play havoc with schedules, so find the service that best accommodates your needs.
Comparing services can be a real eye-opener.
My customers demand an option other than going to a counter operation in a seedy part of town with thousands of dollars worth of gold in their pocket.
Instead, when dealing with a representative from an established business, a home or office visit provides a very secure, private transaction.
A typical office visit, where say 10 items are to be tested and weighed, can take only a few minutes.
If you were to meet during your lunch break, there would be time left to enjoy your break.
Before I meet a client work together to estimate the value of the gold being sold.
This involves knowing the weight and Karat of the items.
With expectations understood, the exchange tends to be a comfortable experience.
Choosing your environment and appointment time goes a long way toward making you feel relaxed and safe.
When it comes to comparing prices, the Internet is a perfect tool.
Here in Ottawa, just Google search "cash for gold Ottawa", and check out the sites.
The open and up-front businesses post the prices they pay on their website.
If they do not, the seller should be wary.
Also, take note of the units for which the prices are quoted.
Often I wonder, what is the motivation for using pennyweights as the unit of measure? Most people that I meet are knowledgeable and comfortable using grams.
(By the way, a pennyweight is 1/20 of a troy ounce, or 1.
55 grams.
) You may also wish to consider selling to a Pawn shop or Jewelry store.
On the positive side you are dealing with an established business but both tend to have a high overhead costs.
The ones in the malls have a high rent and the others have high security costs.
Both the selling and buying operations pay for that overhead.
On the selling side, a gold item is marked up 3 to 5 times the gold value.
The mark-up on gems can be more than twice that of gold.
If your item can be resold as a piece of jewelry, then that is where you are going to get the maximum value.
Unfortunately, most items are recycled for the raw materials.
There are a lot of national services that only provide a mail-in option.
If you do not have the opportunity to deal with someone face to face, then this is an option, but again it pays to be careful.
Once you mail it out, you lose some control.
I am sorry to say, I hear a lot of complaints.
If you are using a mail-in service and have a few items you want to sell, I suggest you send them in one at a time.
Make sure you deal with a reputable firm.
Check with the Better Business Bureau at www.
bbb.
org or any other rating service in your area.
Selling to an individual has some benefits but the safety and swindle drawbacks should give everyone pause.
For your personal security, deal with an established business.
My "online" ads include my photo so that my customers can know who they are dealing with.
An established business has a vested interest in making sure you are a safe and satisfied customer.