Selling Gold Online: How Buyers Scam Millions.

According to The Sun: Individuals selling their old gold become victims of scams both online and on city streets.

As the price of gold has reached a record high—rising approximately 40% since the beginning of the year—millions of people have started parting with their jewelry, including necklaces, rings, and even gold teeth.

Adrian Sherratt Our half-sovereign coin and 10-gram necklace are valued at £640.

However, an investigation by 'Sun on Sunday' revealed that some dealers offer prices that are less than a third of the actual market value, scamming inexperienced sellers.

We showed a half-sovereign coin and a 10-gram 9-karat necklace to eight gold dealers, whose independent valuation this week was £640.

None of the dealers offered this amount, with one offering only £194.31—less than a third of the real value.

Pressure When Selling

John White, founder of Gold Traders, noted: “People are getting scammed on a scale they can't even imagine. Companies need to make a profit, but anyone offering less than 90% of the value is cheating you.”

Gold prices can fluctuate rapidly, but we sent packages with the same items to online traders on the same day.

We also reached out to street companies on the day of the online evaluation.

Selling gold via mail is advertised as a convenient and safe way to get the best price, however, our investigation found that this process is fraught with difficulties and pressure on consumers.

Clients fill in several details online and receive a package to send their valuables.

Companies buy jewelry and then resell it in stores, online, or to dealers for melting.

The lowest offer for our necklace and coin came from Text Gold—which also operates under the brand The Gold Company.

Their radio advertisement claims they offer “the best prices” and promise to pay for your gold within two hours of receiving it.

However, a week after receiving our gold, the company ignored numerous requests for an evaluation before offering only £194.31 when we suggested the gold might have been lost.

Another online company, postgoldforcash.com, which also claims to offer “the best price for your gold,” sent an email with an offer of just £492, which we declined.

More than a week later, the company still had not returned the items, despite multiple requests, which likely puts pressure on families facing financial hardships.

Cash4gold-now claims to offer “great prices and fast payment.”

Unknown, check with photo desk Cash4gold valued the gold at “less than £500,” but offered to round this up if we agreed right away. Wayne Perry

Gold Centre, part of the Wants network—pawn shops in South West England—offered half its value, or £325.

An employee called the next day after delivery to say that the gold was worth “less than £500,” but offered to round this up if we agreed right away.

When we declined, they raised their offer to £520, then to £540, adding: “We will credit your account within ten minutes.”

On the street, we visited Gold Centre, part of Wants, and received an offer of £325.

At H&T, the largest pawn shop in the UK, the offer was slightly higher—£365, representing 57% of the actual value.

Cash Converters, which has several stores in the UK, offered £470, representing 73% of the actual value.

Postgoldforcash.com—who also claim to offer “the best price for your gold”—sent an email with an offer of just £492. Wayne Perry Wayne Perry

“Anyone can start a gold selling company. There are companies operating with service addresses, and there have been cases where people sent gold and never received either their money or their gold back.”

“Using virtual P.O. boxes is a troubling sign—many companies choose Hatton Garden in London due to its association with jewelers, when in reality they operate from anonymous industrial units.”

Ross Norman, CEO of Metals Daily, which provides pricing data for precious metals, noted that the cost of living crisis is causing people to increasingly seek to sell their old gold.

“But if you don’t have good knowledge of the market, you can be cheated.”

Ross Norman

He advises people to thoroughly research the market before selling gold. “If you don’t understand what you have for sale, you risk being cheated.”

All companies were invited to comment on our findings.

I urge people to do their research. If you don’t understand what you have for sale, you open yourself up to being cheated.

Ross Norman

A representative of Cash4gold-now explained: “Like any business, there are costs that need to be covered, and, of course, a profit margin that needs to be obtained.

“So on that basis, the more gold we receive from a customer, the higher percentage we can afford to pay.”

“In small quantities, it is difficult to pay high percentages using free insured mail and without a binding valuation.”

“However, with larger volumes, we can offer very high percentages.”

Top-5 Tips

1. Sort gold by carats (purity). Look for quality marks.
2. Weigh your valuables in grams.
3. Check prices at gold-traders.co.uk/calculator.
4. After receiving an offer, ask to confirm the weight and purity.
5. Don’t be afraid to negotiate or go elsewhere. If in doubt, demand the return of your gold.