Warnings over 'cash for gold' service
Tuesday, 08 December 2009 02:34
A warning is being issued to people using 'cash for gold' postal services after an investigation found evidence of customers being ripped off.
The BBC Newsbeat research discovered three companies promising to provide money in return for old gold were paying out far less than items were worth.
It has prompted Trading Standards to issue a warning, urging anyone thinking of trading in their gold via the post to scour the market for the best valuation.
Speaking to the BBC, Alonso Ercilla, of Trading Standards, said: "Customers need to shop around and establish the price per gram. If you are using a website, read their terms and conditions, and don't automatically take the first price you are offered."
As part of the investigation BBC reporters took a piece of gold jewellery to be valued by several independent and credible experts who suggested £300 as a fair price.
They then sent the same item to three 'cash for gold' companies, all of whom were well known either through buoyant TV advertising campaigns or as a household name.
A US-based firm called Cash4Gold sent a cheque for £63, offering a higher £100 when the researchers asked for the jewellery back.
UK firm CashMyGold, based in Crewe, offered £60.20, a figure which was increased to £150 when the BBC asked for their gold back.
And high street retailer H Samuel's newly-launched postal gold service offered £182 in cash or £210 in vouchers.
When approached by the BBC all the firms said their valuations were 'fair'. Cash4Gold said people were willing to receive less in return for the convenience and speed of the service.
CashMyGold said it had postal and administration costs to consider and it believed it offered a fair price for a hassle-free door-to-door service.
H Samuel said customers were getting a fair deal from an established high street name. It said it returned jewellery if customers were not happy with the service.
Buy and sell gold from a reputable company, Hatton Garden Metals, here.
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