Consumer Advice - recent Edinburgh issues

The 'Golden Rules' from Edinburgh Trading Standards

1. Remember - you don't have to sell your gold to anyone
2. Shop around - prices offered vary enormously
3. What weight is your gold? 1 gram could be worth almost £10
4. Find out the fineness of your gold - is it 9ct, or even 18ct?
5. Some prices given are for pure gold - that's 24ct - and your gold is likely to be of a lesser fineness
6. Check some websites if you can, to see if they display the prices they pay
7. Make sure you only send your gold by an insured postal service
8. If you're sending your gold off for a price, check the terms and conditions to make sure the cost of getting it back to you will be paid by the buyer
9. Keep a note of all reference numbers and name and address where you send your gold
10. If you need to sell quickly, try a local firm - you can negotiate face to face
11. Don't always accept the first offer, as this will often be nowhere near what they are prepared to pay
12. Don't be scared to haggle! This is a business transaction and they will be used to negotiation

The City of Edinburgh Council 's Trading Standards Team is advising people to be alert and shop around if thinking about selling on gold. Recently there have been widespread advertising campaigns telling people, who may be short on cash, to sell gold such as jewellery, all offering highly competitive prices.  

The price of gold has risen steadily in the recent past - and continues to do so, led by considerable demand from national governments and wealthy individuals as an investment in times of uncertainty in other markets. 

While there's nothing wrong with companies buying gold from individuals, Trading Standards officers are concerned about the large variations between the prices offered. Officers carried out a series of tests of gold merchants, including jewellers, pawnbrokers and online postal purchasers. A gold necklace, worth in a valuer's opinion between £270 and £300, received offers from £68.97 right up to £235.