With the uncertain economy, many families are looking to collect some extra money by selling their valuables in the form of gold rings, necklaces, coins or even bars. Because of increasing gold values, many new companies offering to buy gold jewelry have popped up in San Diego, and selling your gold has never been riskier. These buyers seem to pop up at every corner, making it difficult to know whom to trust.

However, with so many people eagerly looking to sell gold jewelry in San Diego, scammers began trying to take advantage of the unwary. This is why it is extremely important to do your research before selling your valuables to someone who might give you an unfair price.

“We Buy Gold”

You’ve probably seen these signs all around town. With the demand to sell gold so high, many such shops seem to have opened overnight. Some of them are completely legitimate gold buyers, but others might have a few stains on their resume.

Some of the less-reputable ones might even give you a quote that is up to 60% less than what you’d get from a legitimate gold dealer. Most of these shops work without a proper license and don’t follow the same legal procedures that other legitimate practices do. They will no doubt try to devalue your gold jewelry using all sorts of schemes. For example, using scales for weighing that are not legally licensed by the Department of Weights and Measures can result in shorting the weight of your gold to reduce its value. That is why it’s important not to rush into selling your gold, no matter how anxious you are. Instead, take the time to research a gold buyer online and look for any red flags from customers who already got burned.

Pawn Shops

The next place people often turn to when selling their gold is pawn shops. While they are definitely licensed, they do not deal with gold exclusively, so they may lack expertise. Even if their reputation checks out, they may not know the current value of the gold you are selling. This might mean that you could get a value much less than that a specialized gold buying business would offer.

Street Buyers

These are probably the worst kind of gold buyers you could do business with. They operate without any rules or regulations and often stay mobile in order to avoid dealing with the authorities. If you get scammed by a rouge gold buyer, there’s nothing you can do but regret it. They can be found in tents, makeshift stores and usually at crowded places, like parking lots and conventions. There’s no reason you should ever get involved with these shady individuals if you want to get a good value for your gold.

Gold Parties

Gold Parties are local gatherings, usually at someone’s home, where people gather to sell their gold. The hosts of these parties work for companies that buy gold and get a sizeable cut from the gold acquired at such a party. Much like other predatory businesses, the hosts at these gold parties try to undervalue your gold jewelry, and once you’ve sold your gold, there’s no turning back as most of these parties don’t follow any regulations or offer any guarantees.

To Sum Up:

Before selling your gold, check out the prospective buyer on the internet. There are many different sites. For example, you can get other customers’ feedback on Yelp, while you can check the background of any legitimate business at the Better Business Bureau. This should go without saying, but never agree to mail gold jewelry or coins without a guarantee. If pressed to sell, visit several offices and compare their prices.

You Can Avoid all of the Risks & Sell Your Gold to a Legitimate Buyer

Your safest bet when selling gold is to turn to a reputable, local gold-buying business like Leo Hamel Jewelry Buyers. A legitimate gold buyer has both the friendly and knowledgeable staff and all the right equipment to appraise your gold jewelry. A reputable dealer will offer you advice and will not rush you into selling the valuables that may have an emotional value.

Leo Hamel’s is a family owned business serving customers in San Diego since 1980. In these four decades, we have built a reputation for being a safe, secure and confidential gold, jewelry, and watch buying business. You can sell your gold of any karat, even broken pieces or single earrings, or trade it for another treasure from our collection of fine jewelry. Feel free to contact us if you have any questions at 619-299-1500, or visit us at a location near you.