Evaluating Gold Buyers
The number of companies that are offering to buy gold from people has skyrocketed. One cannot even turn a page of the newspaper or turn on a television channel without being bombarded by ads from hucksters claiming that they will give you massive amounts of money in exchange for your old gold. This leaves many people wondering if these alleged gold buyers are actually legitimate, or if they are just scam artists.
This may seem to be an unfair question on the surface, but look around you – scam artists are everywhere, and it pays to be vigilant. However, we must emphasize that the vast majority of these people who offer to buy gold are in fact quite legitimate. This may be difficult to believe (particularly given the sheer number of gold buyers out there on the market) but it is the truth.
However, this is not to say that all the gold buyers are equally legitimate. In fact, eludes the cash for gold insider, certain kinds of gold merchants tend to offer their customers better prices – usually because of the way their business is structured. When we say “the way their business is structured”, we are generally talking about the size of their business, which is dependent upon the volume of gold that they deal with.
Gold buyers who deal with larger volumes of gold tend to offer their customers much better deals than gold merchants who deal with smaller volumes of gold. The reason for this is because the merchants who deal with larger volumes of gold are able to command a premium on their processing fees. Processing fees, which every gold merchant must pay, are generally the fees charged by smelters to melt down people’s old gold jewellery and retrieve the gold from the jewellery. Because a gold buyer who deals with large amounts of gold is a more valued customer to the smelters, he is able to dictate his own prices to a slightly larger extent than a smaller merchant would be.
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