With gold prices peaking we’re noticing a proliferation of scrap gold buyers. However, many of these scrap gold buyers are con-artists, and consumers must beware.

Take, for instance, this headline…

“Pawn Shops See Rush of Gold Sellers.”

If you’ve ever worked with a pawn shop before, you know that this is a bad way to sell your scrap gold. Pawn shops are very good at giving you the smallest amount of cash they can. These places thrive on people’s need to get money fast and they try to capitalize on it by giving you next to nothing for your scrap gold.

Technically, pawn shops could be considered scrap gold buyers because they buy scrap gold, but they’re likely to give you less than 30% of the value of your scrap gold. Of course, not all pawn shops and pawn shop owners are the same, so do your research. Are they members of the local Chamber of Commerce? What do people have to say about them online? A company’s reputation can go a long way!

If you want to receive the most amount of money for your scrap gold, you’re best bet is to work with reputable scrap gold buyers. Do your homework and research the company online, or if you are more comfortable, go to a local gold buyer or pawn shop. Lately the latest craze has been gold parties where hosts invite friends to their home to sell gold and have a party all at the same time! Either way there are a number of options available to you, so make sure you don’t get taken by a shady scrap gold buyer!

Of course in addition to considering who to sell your scrap gold to, you must also consider timing!

After a drop in gold price that began in mid-March, the price of gold is on the rise again. For about a month, the price of gold declined. Then, around April 18th, it finally began to increase and has been steadily rising ever since.

With the price of gold on the up, now is a good time to consider gathering that scrap gold you have lying around. Whether it’s a lone earring or a bracelet that just isn’t stylish any more, it’s worth some money as scrap gold. And if the price of gold continues to climb, it could be worth a lot more.

But what about waiting until it goes even higher? Sounds like a good idea, but at some point it will stop rising and go the other way. Just as it did in mid-March, it will start declining at some point or another. It’s high enough that you can be confident you cashed in at the right time.

Of course, if anyone could predict the future price of gold they would be quite rich! Like any other commodity or trade, the price of gold will as surely go down at some point in the future as it is going up now. Don’t wait till the bubble bursts, get it while you can!

Sam Rivers has been in the gold and jewelry industry for over 30 years! A frequent writer on consumer advocacy within the gold for cash industry, Mr. Rivers assists gold sellers with advice and tips on how to get top dollar and sell gold. He has a selling gold blog and also assists with gold parties throughout the country!

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