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Avoid the cash for gold scams

Unless you’ve been living in a cave for the past few years, you will have seen advertising from countless companies wanting to offer you cash for gold.  The price of gold has continued to rise over this period as people see it as a more reliable investment.  The current economic climate and the trouble in the Middle East have helped the price of gold reach an all time high and the price is still climbing.

We live in times of austerity which means we have to watch how much money we spend.  For many people, living from day to day is a real struggle.  So, when these people see advertisements offering to pay good prices for old or broken gold, it is no surprise that they send off for more information.

The price of gold can change by the hour and this makes it very difficult for the average man in the street to know how much their gold is really worth.  Unfortunately, there are many unscrupulous companies trading at the moment that encourage people to send them their gold in return for cash.   These people send their gold off in pre paid envelopes and wait for the fat cheque to arrive. Sadly, when the cheque does arrive it is not for as much as expected. This is how some of the cash for gold companies make such huge profits.  They scam innocent people who don’t know any better.  It’s true that people have the right to refuse the cheque and ask for their gold to be returned, but unfortunately some are so desperate for the money, they will simply accept it.

The cash for gold scam is on the rise and its important people seek proper advice before sending their gold off to cash for gold companies.  Ideally they should get several quotes from different high street jewellers first and at least get a ball park idea of what the gold is worth.  They should also establish the weight of gold they have in ounces or grams so they can do quick comparisons as some cash for gold companies publish a gold price per ounce or gram.

So just by shopping around, it is possible for people to get much better prices than sending gold off to a cash for gold company.  The amount you can receive can vary hugely which demonstrates just how much profit some of these cash for gold companies are actually making.







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