Know your gold value before speaking with a buyer
A buyer has more information than a seller who arrives with an unweighed bag of jewellery. Close that gap before requesting an offer. List each item, photograph its marks and use a suitable scale to record the gross weight. Check the likely karat, then calculate an independent melt-value estimate.
Melt value is not a guaranteed payment. It is the raw fine-gold reference that lets you judge a buyer's calculation. The buyer may deduct non-gold parts, testing and refining costs, operational expenses and margin. Those deductions should be understandable.
Record the price and time so every offer can be compared on the same basis.
Use the gold karat guide to interpret common marks and the scrap gold calculator to model the current metal value.
How to verify a gold buyer
Start with the legal business name, physical address, telephone number and the person responsible for the transaction. A polished website or social profile is not a substitute for an identifiable business. Check how long the buyer has operated and whether the same address and ownership details appear consistently.
In the United States, the CFTC advises consumers to consult local consumer organisations, the state attorney general or the state securities regulator for a history of complaints. Requirements differ by jurisdiction, so confirm any licence or registration a buyer claims to hold with the issuing authority.
Know who receives the gold
Confirm the business name, address, contact details and responsible person.
Understand the test
Ask how weight and purity are measured and whether you may observe the process.
Read before accepting
Review payment, rejection, return, insurance and complaint terms in advance.
Reviews can identify patterns, but treat them as one input. Look for detailed comments about testing, deductions, returns and payment rather than relying only on an average star rating.
A reputable buyer should explain the complete offer
Ask for an itemised calculation before accepting. If several karats are grouped together, request the tested weight and purity for each group. If stones, clasps or other components are excluded, ask how their weight was handled.
| Offer detail | What it tells you | Question to ask |
|---|---|---|
| Accepted weight | The metal weight used for payment | Which parts were excluded? |
| Tested purity | The percentage of fine gold | Which test produced this result? |
| Reference price | The live gold value used | What was the price and timestamp? |
| Deductions | Testing, refining, fees and margin | Is every deduction included? |
| Net payment | The amount you actually receive | Can this amount change later? |
Compare the final payment, not a claim such as “up to 95%.” Convert each offer into a payout percentage by dividing the net offer by your melt-value estimate. The gold buyer payout guide explains the calculation.
Safeguards for a mail-in gold buyer
Mailing gold adds custody and shipping risk. Photograph each item and mark, record the weight, retain the tracking receipt and understand the insurance limit. Do not assume a shipping label covers the full value of the parcel.
- Read how and when ownership transfers to the buyer.
- Confirm the carrier, tracking method and insurance limit.
- Check how long the evaluation and offer remain valid.
- Find out whether silence can be treated as acceptance.
- Read the rejection deadline and every return charge.
- Confirm how quickly rejected property will be returned.
Warning signs when selling gold
- Unsolicited calls or messages combined with pressure to act immediately.
- A travelling or pop-up buyer with no verifiable permanent business address.
- A guaranteed highest price without seeing, weighing or testing the item.
- Testing performed out of view with no explanation of the method or result.
- A scale, purity reading or reference gold price you cannot see.
- Fees or return charges disclosed only after the buyer controls the item.
- Requests to buy gold and hand it to a courier, government agent or unknown person.
- Promises of guaranteed profits or claims that precious metals carry no risk.
One unclear point does not prove fraud, but it is a reason to pause. A legitimate buyer should welcome reasonable questions and give you time to understand the transaction.
What to do if something goes wrong
Save the advertisement, messages, photographs, tracking information, test result, written offer, receipt and payment record. Write down dates, names and what was promised while the details are fresh. Contact the buyer in writing and state the resolution you expect.
If you suspect fraud in the United States, reports may be filed with the FTC, the CFTC when precious-metals investment activity is involved, and the relevant state attorney general or consumer protection office. Contact your bank, card provider or shipping company promptly when payment or parcel recovery may still be possible.
PRIMARY SOURCES
Reference material
COMMON QUESTIONS
How to Choose a Reputable Gold Buyer and Avoid Scams: FAQ
How do I know whether a gold buyer is legitimate?
Confirm the legal business name, physical address and contact details. Check how long the business has operated, review complaints with relevant consumer authorities and ask for the testing method, weight, purity, reference price, deductions and net payment in writing.
Are mail-in gold buyers safe?
Some established mail-in services provide clear tracking, insurance, offer and return terms. Do not send an item until you understand custody, insurance limits, the rejection process, return charges and how quickly your property will be returned.
Can a gold buyer change the offer after testing?
An estimate may change if professional testing finds a different purity or gold-only weight. The buyer should explain the result and obtain your acceptance before completing the sale. Check the return terms before handing over or mailing an item.
Where can I report a suspected gold scam in the United States?
Keep your documents and contact the payment provider when relevant. Reports can be made to the FTC at ReportFraud.ftc.gov, the CFTC for precious-metals investment fraud and your state attorney general or consumer protection office.