No matter how high the price of gold has soared, it's never a good idea to send off your antique jewelry and coins to strangers. Those who do could not only be taking a huge risk.
As the value of gold increases, some consumers are seeking to cash in with a process called gold melting. In gold melting, consumers sell the gold contained in their valuables, such as outdated bracelets, unwanted wedding bands, or a single earring without a mate.
But to a jewelry collector, your great grandmother's out-of-style gold brooch may be worth a lot more than its "melt price." Likewise, a coin collector may find your gold coins to be worth much more than simply the weight of the gold they contain.
That's why Ohio Attorney General Nancy H. Rogers says consumers should resist the temptation to sell an item before it reaches its potential value.
The value of gold and other precious metals is at near-record levels. If you decide to sell your precious metals, make sure you take the time to protect yourself and get the most for your valuables.
To avoid gold melting scams, follow these tips:
• Get an appraisal. Have your gold assessed by an accredited appraiser or a neutral jeweler or collector to find the accurate weight and gold content.
• Find a reputable buyer. Jewelry stores generally offer better prices than pawnshops. Search for complaints filed against a company with the Better Business Bureau at www.bbb.org and other online consumer sites.
• Beware of scams. Scam artists are also tapping into the gold rush. They're using phone solicitations, Internet sites, mail advertisements and Tupperware-style gold parties to trick consumers into selling their gold for less than its true value. Some mail-in companies promise consumers cash in exchange for sending in their unwanted gold jewelry and coins. If you mail your gold, however, you risk losing it completely or not getting a fair price for it.
• Shop around. Get at least three estimates from different jewelers. Ask jewelers how much they offer for pure gold, how they calculate the value of a gold item, and what percentage commission they charge (typically about 10%).
• Consider the consequences. When you melt your gold jewelry, you lose all of its retail (and sentimental) value. Your antique jewelry may be worth more than its weight in gold. Think twice before you melt it.
