5 Tips to Avoid Being Cheated When You Need to Sell Gold and Silver

There are many reasons why someone chooses to sell their gold and silver. You might be having a financial crisis or perhaps you have just grown tired of your old jewelry.

The internet is full of cautions to take when selling your gold and silver. If you are not careful, you run the risk of getting cheated or scammed.

Advertisements for ‘cash-for-gold’ can be found on every corner of Toronto. To avoid getting cheated or falling for a scam, you need to do your research. Here are five crucial tips that will help.

1. Know the Value of What You Have

The value of most jewelry can be judged on the basis of purity, weight and condition of the items you are looking to sell. You need to know what will affect the value of your items.

For example, coins made of precious metals have their value determined by their melt value. The historic or intrinsic value of the coins also factors into its worth.

Knowing the spot price of the bullion in the market is also helpful. Just know that most dealer will often offer a lower price than that offered by the market as they need to account for operational costs and overhead.

If you don’t know the worth of what you have, ask around or go visit a local pawn shop. Even if you do not sell your coins there, you will at least get an idea of the worth.

2. Check Local Dealers and Online for the Best Rates

When planning to sell your gold or silver, you need to look at all your options. The most common options online dealers and local precious metal dealers. Online dealers almost always have better rates, owing to their “lower” operating premium and lack of brick-and-mortar shops. Selling your items online also allows you to sell from the comfort of your own computer. Trust plays a critical role and necessary precautions must always be taken when choosing an online buyer. Regardless if you choose to sell your gold and silver to a physical store or online dealer, make sure you check their customer reviews before finalizing the sale.

3. Be Wary of Cash-For-Gold Dealers

Looking to make a few quick bucks? There are numerous stores around that will offer you cash-for-gold. These dealers may seem like a fast and easy option to sell your gold and silver, but be careful. They are notorious for tricking sellers into underselling their valuables.

“Such dealers are notorious for not telling sellers accurate or current spot prices, and they will likely attempt to use instant cash as an enticement to sell your gold or silver for much less than it is worth. Take your business elsewhere” warns a blog post from Provident Metals.

4. Read Everything Carefully

Even if you are selling to a legitimate website, ensure you review the terms and conditions. An authentic business will have their terms and conditions planted on their website for a quick read by everyone. Further, every legitimate site will have a minimum dollar amount specified for purchase. Inspect these carefully to avoid missing any costly mistakes.

5. Make a Note of the Credentials

Licensed dealers will be able to show proof of registration issued by their respective governments of state. When finalizing the deal, you should ask for this proof.

A truly licensed and genuine buyer will almost always ask for a valid license proof from the sellers. If this does not happen, keep moving around till you find the right one.

Finding the right buyer for your precious metals is a daunting task. You need to have your facts checked, rechecked and verified. This will protect you and your gold and silver from getting scammed.

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