Welcome to Leeds Gold, the free advice site for gold and scrap gold in the UK.
We are experts in gold and scrap gold and our website is here to help you to make sure that you get the best possible deal whether you’re selling gold or buying gold.
We do not want to buy your gold or to sell you gold, our advice is free and without bias.
You see since the recession hit the UK people have been looking for ways to bring in extra £Pounds, and this coinciding with the rise in gold prices has resulted in an avalanche of scrap gold companies popping up in magazines, newspapers, and even on TV.
But despite the glitz and the glamour, the truth is that many of these gold companies are less than honest, and will pay you a pittance of what your gold is really worth.
Let’s face it, as soon as there’s money to be made all of the crooks, conmen, and scam artist come crawling out of the woodwork.
Don’t Get Ripped Off By These Scams!
Here’s how it works:
You see an advert in print, online, or on TV and maybe even see a celebrity endorsing the company.
You get their postal pack, fill in the forms and send in your gold, let’s say it’s worth £1000 to make the numbers easy.
They send you an offer, and despite their advertising saying they pay the best prices, they only offer you somewhere between £100 and £300 for your £1000 of gold.
How can this be? If you think that gold IS money, and £1000 of gold is worth £1000, THEN YOU ARE ABSOLUTELY RIGHT!
The truth is that these gold companies are offering you a fraction of the value of your gold. Remember, if they are advertising on TV or in papers and magazines it costs a lot of money, as do celebrity endorsements, and someone has to pay for that – plus they need to actually MAKE money too.
Can you guess who is going to foot all of those bills?
That’s right, it’s you!
So, you get their quote and you decide they’re ripping you off, so you ask for your gold back, and then what happens?
- Tell you that you need to pay them £50+ for the postage and “admin costs” to get your gold back;
- They tell you your gold has already been melted down and it’s too late;
- They make you a better offer;
Even if they make you a better offer you can STILL be sure they’re STILL ripping you off.
How can you tell?
Let me tell you a true story.
Remember that we spend a lot of time at the gold refinery, and so we see what actually goes on.
We’d noticed that day after day, week after week the (literally!) trucks full of gold kept on coming from some of the best known and most advertised scrap gold dealers in the UK.
What amazed us was that the packages they delivered were still in the envelopes they’d been sent in. The gold hadn’t been sorted or checked, they had clearly taken the form with the customers name, address, and gold content from the packages, and then just sent what was left to the refiners.
What we guessed they were doing was looking at the weight and amount of gold the customer had claimed they’d sent on their form, weighed the pack to make sure it looked right, then sent it to the refiner to be melted down without even looking at what was inside.
We guessed that they could afford to do this because they offer such a pittance of a price, a fraction of the true worth of your gold that even if some absolute junk went through they could stand the cost.
Just think that some of these companies are turning over £Millions of pounds per week, and they are making HUGE profits on them – for every £1 million in gold they receive they might only pay out £100,000, so a few clangers along the way means nothing.
So one of our friends, another scrap gold dealer, decided to test them out.
He went to the local DIY shop, bought a length of chain (obviously not gold chain), and sent it to them in their pack and with all of the paperwork filled in.
We could hardly believe that it might work and he might get some money from them, but sure enough he was offered around £70 for a length of chain that had cost him about £3!
If the chain had been the gold he claimed it was on his form then it would have been worth at least £750, so you can see that the scrap gold dealers in question would have stood to make a massive profit of over £650 on it – this is how they make their money!
If our friend had complained and said he wasn’t happy, and even if they’d have offered to double the price, they’d still have made a good £600 profit, all at their customers (i.e. your) expense.
In the end, in case you’re wondering, our colleague took the money and put it towards lunch for all of us, which was nice, but you can see how these companies who end up dealing with huge quantities of gold make huge profits.
What is even more amazing is that a lot of them have come across from the US where it was already known that they got up to these kinds of dirty tricks, and yet nobody in government, here or there have done a single thing about them.
Don’t suppose they’re getting a slice of the action, are they?
Anyway the moral of this story is that you should never believe the hype, no matter how big an advertising budget a company have, whatever celebrities they employ, or whatever promises they make, you should always make sure that:
- You read the small print – read it carefully, then read it again!
- Look for honest reviews of the company to see what other people have experienced;
- Use you common sense! – if something seems too good to be true – well, you know the rest.
The aim of this site is to give you free, impartial advice about buying and selling gold, whether it’s scrap gold, jewellery, or coins, and whether it’s new or antique gold, we aim to help you get the best price possible.
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