Selling gold can be daunting. No one will tell you where you should sell gold to get a good profit. Thousands of investors lose millions to dishonest dealers while selling gold.
But if you are careful while selling gold, you can avoid scams and can make a good profit.
Best ways to avoid scams while selling gold
It is tricky to sell gold due to various scammers who are targeting the sellers of gold. Due to the corona virus, the economic downturn has also led investors to trade gold for cash, resulting in fall of gold prices.
Numerous gold scams are going on in the market, but here are some ways you can avoid being scammed.
1. Get multiple opinions
You need to find a gold buyer in the market who is willing to pay the highest price for the gold. For this, you need to contact three to four gold pawnbrokers and local jewellery stores and enquire about the estimate.
Keep a base price in mind and check for the offers. Remember that the prices quote for gold can either be the melt value or the percentage of the item’s resale value.
2. Know the value of your gold before selling
Usually, you can get around 60% of the market price as the dealer will also make some profit. The value of gold is determined by the karat weight. The higher the weight, the more the value of the gold.
To avoid getting paid low, you should keep various karat weights together so that the buyer does not pay on the basis of the lowest karat weight of gold. You should also compare the price of various numbers which you have got from the gold buyers.
Also, remember that if you have a gold item with historical significance, you can get a high amount at auction, not at the dealer.
3. Research company
Before you sell gold, always research the company. The company should be genuine and should be listed in government records. Check for accreditations as it will give you more confidence. You should always ask your friends for the referral of a reputed dealer. In this way, you can find a perfect gold buyer for you.
4. Stay away from online buyers
You can easily find gold buyers on social media but trusting all of them is not a good idea as you may end up being trapped in a scam. Avoiding this option and looking for an offline mode to sell gold will be better. Or you can explore the best gold dealers online and visit them personally to verify their authenticity.
This way, you can get a better quotation and there are fewer chances to fall into any fraud activity.
5. The quick cash scheme
There are many scenarios where you may want to sell the gold to make quick money and you will surely find deals for the same in less time. But this is not worth it. You have a precious metal that can give you lots, but just for making quick money, you should not sell it for a few bucks. You should have patience and look for real options from where you can earn an actual amount by exchanging the gold.
6. Check the policy on buying gold
While finding a good gold dealer, you should always check for the policy documents on buying the gold. With this, you can quickly know if the particular dealer is registered to buy back the gold or not. If they are registered, they will offer you will best price for the jewelry item.
7. Wait for the right time
The price of gold depends on the spot value. You should always keep an eye on the spot value of the gold, and when the price goes up, you can look out for some buyers.
If you have the idea of spot value and know the right time to sell gold, you will never be cheated by the dealers.
Selling gold is not easy these days as there are lots of scammers who are waiting for your single mistake so that they can fill their pockets. You need to be very careful when selling gold. Keep the above tips in mind whenever you are looking to sell the gold item you are having.
You should never forget to look for multiple options before making a final decision and if you are having a gold item having historical significance, never sell it in the pawn shops of a gold dealer. Always go for an auction as from there you can make a good amount on your gold item.