Hackney Trading Standards Issues Christmas Warning About Gold

Hackney Trading Standards have issued a warning about buying and selling gold, in time for Christmas.

They said that consumers "must be careful when you come bearing unwanted gold".

The sale of gold - a classically reliable commodity in austere times - is swiftly becoming an area in which rip-offs, unfair trade agreements, and poor prices are rife.

The warning comes as more businesses and shops open in around the country, offering a price for gold by the weight.  Some of these companies advertising on daytime TV ask people to post gold for evaluation and promise to send a cheque through to the seller if they decide to purchase it. 

These companies can often provide “cooling off periods” in which the seller can change their mind and not chose not to accept the quoted price. However, these “cooling off periods” can often be so tight that it is almost impossible for the seller to get their cheque back to the company within the timescale they give.

Trading Standards Team at Hackney Council has already advised one internet gold company in Hackney who have now agreed to extend the period they allow for sellers to reject the price offered to them for their gold.

For anyone who is considering selling their gold to pay for Christmas, Trading Standards suggests the following approach: 

Know the value of what you are selling as best you can. And check online for the weight of your gold and the price of gold by the weight on the day you sell. Knowledge is power. Be aware that the price of gold does fluctuate but is generally high at the moment.

Think twice about putting any gold in the post. Once it has left your hands, you have no further control over it. If it gets lost, then you have to through the lengthy process of making a claim, which if they're old items or a gift you may not have a receipt or proof of value.

Always find out how long you will have to change your mind if you are selling your gold for a certain price. Read the terms and conditions and if the time-scale seems too tight, don’t do it. 

You should consider shopping around the high street first when you want to sell gold. It’s better to know who you are dealing with and how much they are offering for your gold upfront. 

Cllr Alan Laing, Cabinet Member for Neighbourhoods said: “In a recession, people want to tighten their belts and sometimes need to sell luxuries to pay for necessities. It’s important that they do so with their eyes wide-open. A rush in selling gold can be a 24 carat opportunity for less scrupulous traders and companies to offer a poor deal to the unwary. And this is the last thing anyone needs at Christmas.”