Learn To Protect Yourself When Selling Gold: Know What To Look For

Posted on: 4 May 2015

Whether fumbling through your favorite magazine or looking on television, ads to sell gold seem to be everywhere. While these services offer an excellent way to get rid of your old, unwanted gold and earn money, there are still certain precautions you want to take. Failing to protect yourself when selling your gold could cause you to lose money, or even worse, have your gold stolen. Take the time to learn some key ways to protect yourself for the best experience.

Refund Polices

Make certain that the company outlines their refund policy in detail. This step is especially critical if you are working with a mail-in service. With this type of process, you send in your gold and receive compensation for the value of the gold. For most companies, if you are not satisfied with the amount offered, you are legally allowed to send the compensation back to the company for receipt of your gold.

However, if the company doesn't have a clearly stated refund policy, you might not be extended this courtesy. You might discover that you aren't able to return the compensation and have your gold refunded. For this reason, it is imperative that you check this policy before actually sending in your gold to one of these companies. If the company isn't willing to provide this information to you, you should probably take your gold and business elsewhere.

Gold Valuing Process

It's also important that the gold seller be able to provide you information on their gold valuing process. When it comes to calculating the value of gold, there is more than one way to perform this step. More importantly, each process doesn't always provide the same outcome. It's important to understand what process is used beforehand, so you can get a better estimation as to how much compensation you might receive.

For example, some companies will buy your gold based on its value and condition. With this method, the karat level of the gold and what type of condition it is in are compared to its original value. As an alternative, some companies purchase gold solely based on weight. It doesn't matter the condition or karat level of the gold, the total weight of the gold determines how much you will get. Understand what process the company uses so you have a better idea what to expect.

The better educated you are on the gold selling process, the more successful you will be in selling your gold, so make certain you are prepared. Read more here about selling gold.