Cash for gold and gold selling Reasons to beware cash for gold companies

Jewellery in box - cash for gold

Which? Money experts say consumers should be wary of cash for gold firms

Since conducting our investigation into cash for gold firms, Which? Money's experts have come up with a number of reasons why consumers should beware these companies. 

If you have old or unwanted jewellery to sell, make sure you read them - and consider alternative ways of selling your gold - before parting with it.

1. Cash for gold companies may not offer the best deal

As with so many things, the 'easiest' option isn't always the best when it comes to selling old or unwanted gold. While using a specialist cash for gold company may seem convenient, it's unlikely to see you get the maximum possible cash in return for your precious metal - as our investigation into gold selling showed.

If you are determined to use a cash for gold firm, it makes sense to research several and get a variety of 'quotes' for your gold from different websites before parting with it. 

You could also search online forums, blogs and review websites for other consumers' views on particular companies to help you make a decision - but be aware that you can't trust everything you read online, and should always use your own judgement when deciding whether to use any company. Don't rely solely on an anonymous stranger's opinion.

2. Your gold may be put at risk

During our cash for gold investigation, we were concerned about the labelling on some of the envelopes our researcher was expected to use when sending jewellery to cash for gold companies. 

The delivery address for Postal Gold clearly states the company’s name, while CashMyGold’s special delivery envelope is emblazoned with the word ‘gold’. Even though the companies provided £500 worth of insurance for the items being sent to them, a more discreet approach would seem sensible.

Cash4Gold and PostalGold sent out padded jiffy bags in addition to special delivery envelopes, while the others simply provided clear plastic pouches. However, this didn’t prevent the heart emblem on the necklace we sent to PostalGold from being scuffed.

3. It's hard to haggle with a cash for gold firm

During our investigation into cash for gold firms, our researcher found that some provided him with 'quotes' for his items in the form of cheques. If he had wanted to reject any of the quotes received in this way, our researcher would have had just seven to 12 days from the cheque issue date to return it (depending on the cash for gold firm) - otherwise the gold would be melted down and sold on. Since our findings were originally published, the Office of Fair Trading has cracked down on this practice, deeming it unfair to consumers.  

While consumers who aren’t happy with the prices they are quoted for their gold have the right to reject them – or to try and haggle with the cash for gold company in question for a higher price - this won't necessarily prove successful.

The TV gold buyers Which? Money tested took different approaches when our researcher called to reject their quotes. Money4Gold and CashMyGold made no attempt to persuade us to reconsider. 

PostalGold did up its quote for our £115 bracelet from £7.97 to £15.59, it increased the £10.89 offered for our £215 bangle to £21.23 and it improved its quote for the £399 necklace from £25.04 to £45.07. This made our experts wonder why the firm couldn’t give us its best offers first.

Regardless of these rises, the quotes our researcher received from PostalGold were still very low in comparison with even the worst quotes from the jewellers and pawnbrokers we tested.

4. The cash for gold industry is unregulated

The cash for gold market remains unregulated, and Which? believes our investigation raised serious concerns about the way some firms treat consumers. 

Cash for gold companies are free to offer customers uncompetitive prices which compare poorly with what they could get from high street jewellers, pawnbrokers or even by selling their scrap gold online - so we'd urge consumers to think carefully and consider all their options when looking to sell old and unwanted gold. 

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