June 4, 2021


How Do You Know If You Are Working With A Good Or A Bad Gold Buyer? 

If you have some personal gold you would like to sell, there are a myriad of resources you can turn to. However, some resources or gold buyers have signs that are a dead giveaway that they might become problematic in time. The first sign is a temporary presence. When you have gold bullion to sell, you should avoid pop-up kiosks or any temporary availability.  You may not even be looking to sell your gold until fliers start appearing in your neighbourhood of different gold dealers offering cash for your gold.

Buyers who pop out of nowhere, operate from hotel lobbies or conferences areas, malls or any other temporary location are a big no-no. They will emphasize the importance of taking advantage of the opportunity they are offering now and may pressure you to make decisions you may not have been ready to make. A lot of these types of gold buyers might offer a sizeable amount of cash for gold but how would you know if this is a fair value? Travelling gold buyers are aware of the fact that most of the sellers thy buy gold from aren’t experts and they have no idea how the gold market works or how the market is tracked and used to calculate the ultimate price of gold. The idea of cash for gold is very alluring, especially when you need cash quickly. In the long run, then you end up with less than what you would have gotten from a reputable, well-known reputation; meanwhile the gold buyer has made a profit from taking advantage of your limited knowledge and awareness. 

Other problem buyers are more established and have been conducting regular business for some time.  These include businesses like pawn shops, payday loan companies etc. These kinds of businesses deal with second-hand gold but as a business, they have to content with overhead costs, mark-down and essentially have to rely heavily on immediate cash to make money. Pawnshops give you two options: loans against your gold and outright purchasing of your gold. 

You also have to consider private buyers. Word might get around that you are looking for someone to sell their gold to. Of course, you can elect to meet this person before you sell your gold off, but in this day and age, meeting total strangers with something as precious as gold on you can be extremely dangerous. Online auction sites can also be considered as private buyers but these kinds of attractions attract taxes and other costs a classic bait-and switch– get people in the door pressurize customers to sell now or lose out because, theirs is the best price you’ll get anywhere. You won’t know if you are low-balled which is probably what will happen. It’s usually a low-ball price. High-pressure selling tactics can result in you settling for far less than what you should be getting. If you feel pressured, don’t sell. 

Stay local

There are a lot of gold dealers both in Australia and elsewhere who are looking to buy gold. When the demand rises and prices sky-rocked, buyers do tend to employ tactics to put you ender pressure. There are a lot of gold buyers, some are good and others are not so good. The best way to protect yourself and to make sure that you get what your gold is worth is to stay local. Local gold buyers will have a vested interest in the community and will be careful not to tarnish their reputations by giving you poor service or low balling you. 

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