A weekly service of the Palm Beach County Consumer Affairs Division
Trap
Mark from Boynton Beach couldn’t resist the invitation. A gold party! It sounded fun, and his wife had a big box of discarded jewelry. He went to a stranger’s house across town and met a lot of people selling their gold. There was a professional looking lady weighing the gold and writing checks. Mark handed over his bag of jewelry and made more than three hundred dollars!
He even got a tip on how he could start his own gold party business. Later that night he wondered if he got such a great deal. Mark’s wife was also not happy about him selling her high school pendant.
Tips
The gold bullion exchange industry is largely unregulated and Florida does not require licensing. There are ways to avoid a gold party nightmare:
- First, decide if you really want to sell your gold. Jewelry can often be worth more than its salvage weight when you include artistic or sentimental value.
- Gold parties may be fun and convenient, but may not give you the best deal. It is important to know the karat of your gold and to get it appraised beforehand. Call a local jewelry store or go to www.goldprice.org.
- Keep in mind nobody does business to lose. Gold parties operate with many costs such as host commissions, the buyer’s time and the refiner’s costs. These expenses mean your gold may be bought at up to half of what it is really worth.
- Be wary of buyers who lump your gold into one pile. Sort your gold by karat weight beforehand, and be cautious if told your gold is of a different karat.
- Understand the scales. Gold is measured in Troy ounces (31.1 grams). Shady buyers will weigh gold in what’s called pennyweight (1.555 grams) and pay you in grams. Make sure you are paid the right price for the unit of measurement.
For more information, contact Consumer Affairs at 561-712-6600 (Boca/Delray 1-888-852-7362), or get information about businesses at www.pbcgov.com/consumer.
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