CONSUMERS ADVISED TO TREAD CAREFULLY AS PRE-CHRISTMAS GOLD BUYING MARKET HEATS UP

CONSUMERS ADVISED TO TREAD CAREFULLY AS PRE-CHRISTMAS GOLD BUYING MARKET HEATS UP

24 November 2010

Australian consumers should exercise caution when considering selling unwanted or unused gold for additional cash in the lead up to Christmas.

The comments from the Jewellers Association of Australia come as the price of gold continues to increase combined with aggressive marketing from gold buying outlets ahead of the festive season.

“The increasing price of gold means many consumers may be considering disposing of their unwanted jewellery or gold items to help with Christmas expenses”, said CEO of the JAA, Ian Hadassin.

“That combined with the plethora of gold buying outlets now operating in shopping centres means the 2010 festive season will be one of the busiest of the year when it comes to trade in unwanted gold.

“Whilst the current selling environment is very tempting, it is important that consumers arm themselves with the facts to ensure that they get the best possible price for their unused gold.

“Before selling your gold, make sure that you are dealing with a properly licensed company.

“Companies or individuals buying gold must have a Second Hand Dealers License so consumers should feel perfectly within their rights to ask a gold buyer to show the appropriate certification and licensing.

“If they won’t, then choose to deal with someone else.

“People should also make sure that they know the type and quality of gold they have before they even approach a gold buyer.

“Learning about the differences in quality and value of gold, such as 24 carat versus 9 carat, means you will be better informed as to the price you can expect to achieve when you approach a buyer.

“Also learn how these different types of gold are stamped so that you can properly identify the type of gold in your jewellery which you may be considering selling.

“Once you know the type of gold, then you should watch the buyer weigh the gold on scales which have been tested under State and Territory controls.

“The price offered should be given as a price per gram according to the carat value of the gold.

“It is also important to remember that the price paid for second hand gold will always be discounted against the gold price of the day, as the buyer is in the business to make a profit.

“Consumers should expect about 80% of the spot price for gold per gram according to its carat value.

“The JAA ’10 Tips for selling your gold” available at www.jaa.com.au provides a wealth of information for those consumers considering selling their unwanted gold.

“Our advice is that people wanting to take advantage of the strong gold price should shop around and get multiple quotes from only licensed second hand dealers to ensure they get the best possible deal”, said Mr. Hadassin.