Thursday, December 2, 2010

How to Sell your Gold & Avoid Ripoffs!

High prices for both gold and silver, as well as the lingering recession, have prompted many owners to consider selling their "unwanted" precious metal jewelry, coins, etc. The current market for second hand gold and silver is a sea filled with sharks, eager to ripoff unsuspecting sellers.

I'd like to cover the various methods for selling your gold and silver while listing the pluses and minuses of each sales channel. You'll find that generally the more you're willing to become involved in the selling process, the higher the end sales total tends to be.

  • Mail-in Companies - These are the WORST THIEVES of the bunch! Yes, firms like Cash4Gold will send you a free kit and mailing envelope to dump your gold or silver into while you sit back and wait for your check. However, don't be surprised when you receive an offer for only 10-15% of the true value of your precious metals! Payment is by check. However, if your envelope gets "lost" you're out-of-luck.
  • Roadshows - This animal is the next step up on the Bottom-Feeder scale. A variety of companies sponsor shows in conference centers and second-rate hotels. These events are heavily advertised to lure unsuspecting sheep with treasure in hand for shearing. The employees manning these booths are usually inexperienced new hires who heavily consult books and computers to make you an offer. Offers usually don't exceed 30% of the actual item value, and payment is by check. In some cases the checks given to sellers have bounced after the Roadshow was long gone to the next sucker convention.
  • Pawn Shops - Pawn shops typically have a bad reputation, although shows like Pawn Stars have helped the industry. Payments can vary dramatically from Pawn to Pawn, but you'll usually get anywhere from 50-80% of the melt value of your items. In addition, they usually pay in cash!
  • Ebay & Other Online Sites - This is my favorite way to sell my gold and silver coins. If you have average computer skills and a little time, you can post your own auctions on eBay. I find that I generally get from 90-105% of the melt value for my auctions. Auctions of no name jewelry, however, will probably net you less. The best part of this sales channel is the large exposure you get to sellers actively competing for your item. The major downside is the roughly 10-12% of the value of the sale in fees you'll be paying to eBay for the use of their site. Payment is usually by PayPal.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.


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1 comment:

  1. Very good tips to keep in mind. Gold has been very popular and it has a reason.

    sell gold