The price of gold has touched record heights, so people are looking at the cash for gold to make some money out of their old fashioned and broken gold jewelry. Cash for gold has become more popular than buying gold. However, it is now common knowledge that a number of the cash for gold companies are fraudulent and use misleading methods to cheat customers.
Despite the awareness about their shady dealings, cash for gold companies continue to be in business because people must have some way of selling gold jewelry. You have better wise up to how these cash for gold schemes work. The best known of these companies is Cash4Gold which boasts over a million daily transactions. Your gold has to be mailed to the company in a special package and they will send you a check. Too good to be true!
In most cases, the cash for gold companies safely assume that the person selling gold has not knowledge about the precious metal. The gold is often undervalued and the weight is misreported. When you are selling gold make sure that each piece is weighed separately.
But why are you thinking of selling gold. Do you want to take your investment into something less volatile? Then you will be defeating your purpose by putting what you got from selling gold into US dollars, Euros or even the Pound.
If you want to sell gold, go ahead. The gold you have has tripled in value in the last five years. So you should either invest it in a new business or go on a fabulous holiday. But don’t even think of reinvesting into the money markets or into bonds. That would be a bad buy. Paper money is losing its purchasing power very fast.
So make sure that you get paid the right amount when you sell your gold jewelry. Just like in the cash for gold schemes, if you go to a to a pawn shop or a scrap dealer with your gold you will not get the full value.