Do homework before you sell granny’s gold jewelry

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This article was published 24/09/2010 (5512 days ago), so information in it may no longer be current.

Sure, they’ll give you cash for your gold. Just make sure you’re getting the money you deserve.

As the price of gold hit record levels this week, creeping closer to US$1,300 per ounce, Winnipeggers might be tempted to dig into their jewelry boxes and cash in with companies that deal in scrap gold. That’s not a bad idea, industry experts say, so long as sellers do their homework first.

Winnipeg-based Gatewest Coin Ltd. buys gold from dealers and individuals, and is seeing significantly more interest now than in the years before gold prices shot up.

“There’s a tremendous volume of it,” said president Ian Laing.

“If you are going to sell it, now’s the time to do it,” said Phyllis Richard, executive director of Jewellers Vigilance Canada (JVC), an industry-funded non-profit that supports ethical practices for jewellers.

Richard said price aside, sellers should keep a few things in mind before turning grandma’s antique ring into quick money. For starters, precious gems or detailed engraving aren’t taken into account at most businesses offering money for gold.

“You’re selling it basically for scrap metal,” she said. For truly valuable items, you might be better off dealing with a reputable estate sale or auction.

Richard said good buyers should be up front about their per-gram rate. Sellers, in turn, should feel free to shop around, and be sure to ask questions — whether a business is properly licensed, for example, or how long it’s been in operation. They should also get a receipt for any gold left with a business.

“You have to find a company that you can trust,” she said.

‘Gold parties’ — imagine a Tupperware party, except with gold-hawking friends meeting a prospective buyer — are picking up in popularity, she said. So are companies that let people send off their gold by mail and get a cheque in return.

But Richard cautioned not all such operations are legit, and sellers should check out the background of a company before making any deals.

JVC runs a phone line, 1-800-636-9536, where customers can call to inquire about complaints about jewellery businesses, said Richard. The association can’t share the nature of complaints but can say how many have been received about a business, and whether or not they were resolved.

lindsey.wiebe@freepress.mb.ca