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Will you get ripped off if you trade your gold to a cash for gold broker
By Billy | January 11, 2010
When you consider the latest state of the American economy and the forever increasing movement upwards in gold prices , it is necessary that people are taking out their old gold and silver jewelry and are getting rid of them to cash 4 gold industries as a way to come up with some additional cash to pay down their financial woes and to make their next mortgage payment.
Assuming you are in the same situation you will need to cautiously do your research before giving away your unwanted jewelry to just any gold brokers for the reasons that there is a huge increase in the number of fraudulent gold brokers in the jewelry buying business who will happily take advantage of your desperate situation and pay very little for your precious jewelry.
Even though this behavior may not be a scam, it is in my opinion, totally wrong and I am here to warn those of you who may be considering parting with your old jewelry to be sure to stay away from companies that are acting as middle men and to deal only with metal refineries or gold buying companies that have their in-house metal refineries
You see, cash for gold companies are being middle men between you and a gold refinery and because of that they will pay you about one third of the value for your gold and easily trade it directly to a precious metal dealer themselves therefore keeping the lions share while you receive a few lousy bucks.
A short while ago, Fox news put together a kind of undercover operation, where they delivered 3 of the same items of jewelry to 3 different cash for gold businesses and waited for their check and while 3 of the companies did in fact forward a payment for their old gold, only 1 of those cash for gold companies actually gave the true value while the other cash for gold companies payed about one third of today’s true value .
The two cash for gold companies that that payed 30% of the real value were acting as brokers while the 3rd company that payed the real value did have their own gold refinery, so it is seller beware in this industry and I strongly suggest that you do your homework before parting with old gold or silver jewelry so that you will not fall for the cash for gold scam
Topics: Real Estate Investing |
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