I want to share a recent experience that confirmed my fears regarding the flood of people suddenly buying gold, silver and platinum by convincing
people to bring in their old jewelry and precious metal items.
Let me start by saying there are honest people doing this, but I think many if not most are taking advantage of people and even lying to them.
How this started is my wife is wanting to have a custom ring created for a special stone. She asked me if she could gather up jewelry we have and
other precious metal items and sell them for the money to pay for it. We have a few rings and other items we never wear and keep because of the
precious metals value.
I was skeptical of the buyers and had her take part in an experiment with me to find out if they are in fact ripping people off.
I sent her out with an 18 karat gold band, a heavy platinum band and a one ounce silver coin (one of a few dozen I bought years ago). I picked the
items because I knew exactly what they were and that there would be no issue with authenticity or the amount of precious metal they contained. I
wanted to see how honest the buyers would be.
She started with a local buyer that advertises often and I've seen featured recently in a news story about how busy they were. A general fluff piece
that was more of an advertisement, but presented as a news story.
This company, supposedly the safest one to deal with lied to her from the second she entered the store. They lied about the amount of gold in the
band. They told her the Platinum band was in fact Silver. They told her the one ounce Silver coin was not Silver. Then they offered her $70 if she
gave them all three items.
The second location lied also. This one told her that none of the items were real, but they would give her $20.
The third location was completely honest and offered her a reasonable price of just under $700 after confirming the items were genuine and calculating
their value for the metal in them. The offer worked out to around 80% of spot on the metals, which is better than I expected.
Since the first location is where most people go, I can't help but wonder how many people they have screwed over.
People, be very, very careful if you sell to these folks. It took us three try's to find an honest buyer. It also turned out the one I thought I could
trust was very dishonest, while a local guy doing it on the side was completely honest and paid more than I expected.
edit on 2/24/2012 by
Blaine91555 because: (no reason given)