These days, it is difficult to read a newspaper without seeing ads from vendors who offer to purchase your old gold jewelry. If you are indeed planning on conducting transactions with these people, it would probably be a pretty good idea to keep your guard up at all times. These dealers are professional negotiators, and are likely to find ways to swindle you no matter how bullet-proof you consider your wallet to be.
This is not to say that you can really blame gold buyers for being like this – they are just doing what they need to do in order to survive. The second-hand gold market is ruthless, and dealers are often forced to try to come up with new ways to make a quick buck.
According to the cash for gold insider, one important thing to remember is that anyone selling gold is usually doing so from a position of weakness – that is to say, they are usually in desperate need of liquidity. Sellers are almost always in need of quick cash, and jewellery buyers will not hesitate to exploit this weakness in any way they can.
One very common tactic, for example, is to keep you negotiating for longer than you can afford to wait, until you simply give up because you are in a hurry. After four hours of haggling, you would probably be willing to accept $500 for your $800 gold watch. The only way to avoid this dilemma is to know exactly what your gold is worth. If you are going to exchange cash for gold, you need to know how much cash the gold is worth. Weigh your gold and check your newspaper for gold prices; then calculate the price. It is important to have this information when you approach a gold dealer, so that you can calculate the value of the dealer’s cut. Ideally, the dealer’s own markup to prices should not be higher than 15%. It should actually be even lower than that, but you can only hope for so much when dealing with professionals.