Eldora Resources - Buying And Selling Gold: Avoid Cash For Gold Scam Adverts

By Author: Eldora Gold
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Eldora Gold Resources on Buying and Selling gold - If intending to buy or sell gold, then consider the need to analyse carefully cash for gold type adverts before selling gold to such a buyer.

It is important to research and evaluate each of the gold investment companies under consideration. There are many gold investment scams, fraud, boiler rooms that you should watch for, this will serve as a good warning before investing and only use gold options and companies that are verified, and have a good business reputation. This will minimize the risk of falling prey to any boiler rooms, scams or frauds.

The recent economic downturn has seen a plethora of TV adverts offering to buy gold for cash, the web has also seen a boom in the number of online gold traders in recent years. In many cases however, such TV commercials and online gold traders may only offer a fraction of the value of items, as well as poorer service levels than may be obtained from a reputable gold dealer or jewellery store.

Buying and Selling Gold: The Fair Value of Gold
Those offering a cash for gold service will usually be solely interested ...
... in the scrap value of the gold. As such, the fair value of the gold in this case should be assessed on the basis of weight and purity. In order to assess the value of a gold item, one must ascertain the weight of gold in an item. This is done by multiplying the weight of the gold in troy ounces by the purity of the gold.
For instance, two troy ounces of 12 carat gold, which is gold with a purity of 50 percent, would be valued as one troy ounce of pure gold. The value can then be obtained by simply finding the spot rate of gold on the day of valuation, which is quoted in troy ounces.

his however, is only the scrap value of gold. Most forms of gold have an added value through its inclusion in jewellery or as an item, such as a watch. This however, adds no value to the item for the scrap gold trader. If such an item is to be sold, then a much better value is obtainable from a specialist dealer in jewellery or from an auction.
Buying and Selling Gold: Common Scams and Problems
Many cash for gold adverts claim to offer best prices paid, in many cases this statement will simply be false. Such a claim can easily be verified by simply finding the spot rate of gold and comparing this to the rate offered by the potential buyer. Whilst it is unrealistic to expect to achieve the spot rate, a traders premium should not be excessive.
Cash for gold adverts often offer a free valuation with the prospect of returning one's goods, if the offer is not accepted. However, one should check the terms and conditions to ensure that there are no hidden fees. Common hidden fees include charges for postage and packing or so called release fees to return one's valuables.

Another area to consider is the treatment of an object. This is a special consideration, where items such as watches or jewellery are concerned, there is always a danger that sending away one's valuables will result in damage to the item, should a return be required.
Finally, even where a scrap gold trader offers a fair price for the gold, in addition to acceptable terms and conditions, consider that one will not receive any value for the artistic or collectible value of a piece sold.