With the price of gold skyrocketing amid market uncertainty, the Better Business Bureau (BBB) is warning Airdronians to be careful with their precious commodity.
The consumer watchdog is telling gold owners to be mindful when thinking of selling the metal for money, currently trading at more than $1,800 an ounce.
“It’s tempting to raid the jewelry box right now and sell unwanted pieces,” said Sandra Crozier-McKee, BBB president and CEO, Southern Alberta and East Kootenays. “However, it’s always wise to do some research before you decide to sell.”
Finding a trustworthy appraiser is key, according to Crozier-McKee, who said people often get one quote and then sell.
Furthermore, gold prices may not be what you expect. A 14-karat ring is only about 60 per cent gold, so a person would stand to earn less than they may expect.
Laurie Legault is the store owner at Goldworks Sales and Service Inc. in Airdrie and has been receiving many phone calls from citizens to buy their gold.
“They might not get exactly what they think they are going to get,” she said. “They think ‘I’m going to make money,’ but if they’ve got stones in there, they’re getting ripped off because they’re not getting value for whatever stones they’ve got.”
Acid tests and refining are standard procedures for gold selling and that costs, according to Legault. While Goldworks doesn’t buy gold, employees will melt it down and re-customize the commodity for a person, but said that’s also complicated.
Gold is 10, 14, and 18 karats, which means there are multiple alloys inside the mixture. It’s not fully pure and people won’t receive full value, Legault said.
Legault offers customers a gold credit to avert the alloy issue if they are re-doing a ring. Something like a re-done pendant can be made using the person’s gold and won’t make a difference, Legault said.
“If somebody’s got two or three pieces with stones in it, they should consider melting some and making it personal for themselves,” she said.
Crozier-McKee echoed Legault’s comments and said people must be sure before selling.
“(People) have to be aware of the fact that they’re not going to get their gold pieces back. They’re probably going to get melted down. If you think ‘I should have kept that,’ it’s probably too late.”
Crozier-McKee encourages people to know terms and conditions when selling gold and to ask a company about its guarantee if they are not satisfied with prices.
