Beware the TV gold scammers, warns Which?

| January 22, 2010 | 0 Comments
Beware the TV gold scammers, warns Which?

TV adverts offering people the chance to sell their unwanted gold by post are paying “shockingly low rates”, an investigation by consumer advice group Which? has found.

Cash-for-gold firms advertising on TV pay an average of just 6% the new retail value of gold, Which? discovered.

CashMyGold gave the lowest quote of all, offering £6.43 for a gold bracelet worth £115, and £22.50 for a gold necklace worth £399.

One TV gold merchant, Money4Gold, held the £399 necklace to ransom, claiming it was “not gold” and demanding a postal order for £9.95 to return the iten.

High street pawnbrokers and jewellers both offered better value, Which? found.

Pawnbrokers quoted an average of £26 for the bracelet and £80 for the necklace, while high street jewellers offered on average £33 for the bracelet and £102 for the necklace.

Which? said the research raised “serious concerns” about the unregulated cash-for-gold market.

“People should be wary of buyers’ adverts, as our research shows that they certainly could get more money for their gold elsewhere,” said Peter Vicary-Smith, Which? chief executive.

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