The price of gold continues to rise unabated, bucking the trend of the sluggish economy in general around it. More and more companies are springing up offering you a fortune for your old gold, but is it all a scam? Let's take a closer look and find out!
Cash for Gold is a relatively new phenomenon on the internet, however, for the savvy consumer it can represent tremendous value. Gold has literally never been worth more, so if you have some old pieces of jewellery around your home that are gathering dust, why not trade them for cash?
It is estimated that up to 35 tonnes of gold bullion is expected to be recycled from scrap gold in the UK this year, so there's clearly a big market for it. It's almost worth a billion pounds in fact. We'd like to sound a note of caution at this point, and point out that many "Cash for Gold" companies are playing on the fact that consumers will be inexperienced on this front, and try to offer way below the market value.
A reputable Cash for Gold company should be offering you between 80 and 90% of the true value of the gold. This figure isn't 100% because the costs incurred by the company need to be taken into account. After all, all those TV commercials don't pay for themselves!
If you are sending your gold off to one of these companies for valuation, then we recommend trying to get it insured, as you'll have no comeback if it gets lost in the post, or the company turns out to be a little dodgy.