Sep 12, 2013 5:52 am
While selling your used gold jewelry sounds like a simple method to make some extra cash, you can get shortchanged if you don’t do your research beforehand.
It's no mystery that gold trading is a heavily regulated industry. However, we're all just as vulnerable to fraud or shady business practices as back in the dirty thirties. DCA Commissioner Jon Mintz noted that "With the strong price of gold, the gold buying industry is booming, and yet our inspections reveal that selling your gold can be a risky proposition for consumers,”
If you suspect that a jewelry dealer has broken violated any of these compliance requirements, please consult your closest consumer bureau. These authorities are affiliated with the DCA; an organization that grants the license of over 4,000 jewelry businesses in the NYC/tri-state area. In 2011, the DCA concluded that there was a mere 25 percent compliance rates among gold jewelry business. What's shocking is that this data was obtained from a follow-up inspection of businesses that were given violation notices in advance.
In 2012, the DCA conducted undercover inspections in hundreds of stores across the region. The findings were quite disturbing and a huge warning sign for gold buyers. In fact, on average, jewelry was quoted at half the price of a separate professional appraisal. It should be stressed that so-called "undervaluation" of jewelry is by no means illegal. However, it adds to the case for comparison shopping.
It's imperative to familiarize yourself with the new industry regulations. This includes making it compulsory for the gold buyer to disclose exactly how he evaluates the value of the clients' items in addition to disclosing the karats of each item; the item undergoing appraisal must be weighed in plain sight of the customer. It's now mandatory for all gold buying businesses to keep documentation and provide receipts that include the business's license number; address; employee name/title; date of purchase; and description of the item that was purchased.
All precious metal businesses are required to obtain a license to operate in New York State. Always sell with the utmost caution and seek reviews and second opinions. After all, consumers are not the only ones vulnerable to gold and precious metal scams in New York. Only a year ago, one of the most reputable merchants in lower Manhattan lost over a hundred thousand dollars from purchasing counterfeit gold bars. Such bars were crafted by a sophisticated criminal ring and are virtually undetectable from the real thing! This is because the criminals discovered a means of hollowing out authentic gold bars and filling them with tungsten. If you've taken upper level chemistry you may know that tungsten and gold are very similar in weight.
For information about how you can about selling your gold and jewelry in New York and New Jersey, feel free to check our services out at http://globalgoldandsilver.com/