Tags: Money | cash for gold | shouldnt sell

7 Reasons You Shouldn't Sell Your 'Cash For Gold'

By    |   Monday, 15 June 2015 06:34 PM

The cash-for-gold craze that got rolling in the 2010s, with mail-in companies advertising on prime-time television and gold parties being thrown at people's homes, coincided with severe economic worries and the anxiety-powered price of gold hitting record highs in excess of $1,800 per ounce.

Even then, making a mint of the scrap gold lying around the house was no sure thing. Complaints about cash-for-gold operators multiplied as gold fever spread, USA Today reported.

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With gold prices still high on a historical basis, but having settled back down since 2011, there are even more reasons to shun cash for gold.

1. Your items may be more precious as jewelry than as scrap gold. A proper appraisal can help settle whether the "melt value" — the weight and purity of the raw precious metal, based on gold's market price — exceeds the price the pieces would command based on their design or brand.

2. You're at the mercy of gold buyers, who "are not bound by any restrictions when it comes to buying scrap gold," jeweler Travis Thornton writes for Angie's List. "They can give you 100 percent of that day’s gold value and make nothing, or they can give you 10 percent of the day’s value and hope to make 90 percent when they sell it."

3. You could get ripped off. Unscrupulous gold buyers know how to capitalize on a seller's ignorance or unwariness and pay out less than the gold is worth. Some will take advantage by insisting the gold is less pure than it actually is, or by switching weight measurements between regular ounces (28.3 grams) and the heavier "troy ounce" (31.1 grams) used for precious metals.

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4. It can be a crapshoot, as NBC's Today show revealed in a 2010 investigation of 10 cash-for-gold programs. The program found that a single batch of old jewelry appraised at $450 fetched anywhere from $38 to $393 in offers, with some operators offering a fraction of the gold's worth simply because they could.

5. You may never see your gold again. Some would-be sellers have complained that even after they rejected an offer from a mail-in service, the company never sent the gold items back as promised.

6. It's a stopgap. Selling off scrap gold is a short-term fix that doesn't address longer-term income issues and the need for a comprehensive personal financial plan.

7. You might regret it. Gold items sold off today on an impulse or in a pinch might be sorely missed later as keepsakes and heirlooms.

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The cash-for-gold craze that got rolling in the 2010s coincided with severe economic worries and the anxiety-powered price of gold hitting record highs in excess of $1,800 per ounce.
cash for gold, shouldnt sell
Monday, 15 June 2015 06:34 PM
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