If you are a first time buyer or a seasoned gold hunter, anyone can fall for a carefully constructed scam or deal that seems better than it actually is in reality. No one likes leaving a transaction feeling like they got a raw deal and especially when it comes to something as precious as gold.
Therefore, this article will reveal some sneaky tricks that sellers often pull out of their hats to fool eager buyers into believing they are getting a good deal when in reality, they are actually getting completely ripped off.
Go back to the source
First things first, you need to think carefully about where you first heard about the gold. If you are a newbie to the gold buying scene, it is probable you would have heard or seen an enticing advert from a radio show or on the TV. You might have even seen the ad from search engines like Google and Bing.
If this is the case, you must be aware that when you contact the dealer, they will be smooth talkers. Gold dealers often have the gift of the gab and can easily sell you items that go over your budget and you were not even considering! If you are looking for peace of mind when buying gold however, Melbourne pawn shop offers secure and private transactions with over 60 years experience.
Give them a taste of their own medicine
If you have a good idea you might be getting ripped off, you can try this golden trick. Even if you have many doubts in your mind after hearing the price the dealer said, ask them confidently – ‘if I were to sell back this gold item back to you at the exact same price you sold it to me today, how much would you pay for it?’
If they hesitate and revert to sales speak then you know they are taking you for a ride. If they are open and transparent however, there is a good chance you can trust them as a reputable dealer.
Some of the golden tricks scammers try
In this section you will discover some of the most renowned ways dealers will try to be conservative with the truth when selling you gold. Knowing the tricks and scams will help you stay alert when buying gold because at the Melbourne pawn shop, we want to ensure you have every confidence when parting with your money.
1 – Leveraged accounts
This is when the dealer offers to lend you cash so that you can buy the gold. Sometimes this option can be very enticing and actually pay off, but only when it is from a reputable dealer.
With those companies that are out to make an unfair transaction from you, they will offer loans and when the value of the gold drops, there’s a good chance they will ask for some more money.
However, reputable dealers such as Melbourne pawn shop are completely transparent with their loan rates and promise you the Most Money Guarantee.
2- Watch out for ‘Collectibles’
You want to be extra cautious of anything with the label ‘commemorative’ or ‘collectible’ next to it. These are often sold on the story behind the gold which come in eye-catching packages but are not worth a fraction of what they are being sold for.
3- Always know the current fluctuation rates
Knowing how stable or unstable the current price of gold or ‘rare coins’ is can be a saving grace when it comes to the negotiation of gold. Having a knowledge of which items of gold have a notable premium because of their demand or supply in the past will impact their value greatly. Knowing this will help you have the upper-hand in the sale and walk out knowing you have bagged a good deal.