The Gold Standard Jewelry and Gold Buyers Advises Consumers to Beware of Gold Scams

NEW YORK, April 9, 2013 /PRNewswire/ -- Due to skyrocketing gold prices in recent times, an epidemic of "cash for gold" advertisements has appeared everywhere, but they are not all one and the same. The lure of easy money has attracted many slick entrepreneurs to the business, as well swindled many a customer for their fine jewelry. An undercover study conducted by the Department of Consumer Affairs in late 2011 found 74% of gold buyers in violation of state and federal laws. With deception running rampant, consumers are warned to do their homework to find an honest gold buying company and look around for comparative pricing.

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"The importance of researching a gold buying company, as well as the value of gold cannot be stressed enough," says Scott Simon, President and Owner of The Gold Standard Jewelry and Gold Buyers. "A consumer needs to know their rights as they walk in to one of these businesses and that includes knowing what to look for to ensure a transparent and honest transaction."

First and foremost, one must be educated on gold prices in order to know the true value of their possessions. It has been found that many gold buying operations do not advertise the prices of gold to the public, therefore allowing them to function at any price range they please - with tendencies proving to be much lower than market value. Next, one should only sell their items to an establishment with the proper licensing. Businesses that buy or sell gold must be in possession of a secondhand dealer's license, which should be on display and clearly visible to the customer. "Research on a company's track record is also vital to a reliable transaction; for example The Gold Standard holds an 'A' rating with the Better Business Bureau. Any company with a lower rating or that lacks a rating may not be following the most ethical practices," informs Simon. Although not necessary, it is always reassuring to looks for certificates advertising membership to accredited ethical groups such as the Jeweler's Vigilance Committee, among others.

Once inside an establishment, one should always confirm that scales are regulated and inspected by the DCA to ensure accuracy. Seals across the base of the scale should always be visible to the consumer, displaying the upcoming date at which it is be due to be recalibrated. Always bring US government photo identification when selling precious metals; if an ID is not requested at the time of transaction, walk away. "Licensed gold buyers are bound by the law to keep accurate records of all transactions, and at The Gold Standard we including information on what was purchased, for what prices and from whom," states Simon. Buyers are also required to keep items for a holding period, which one should always inquire about in case one experiences seller's remorse or is unhappy with the sale. Selling at reputable locations instead of business stands or with traveling buyers is yet another way to ensure the conduct of business with a dealer who complies with state laws.

With businesses ranging from jewelry stores to barber shops now display signs offering "cash for gold" services, consumers should be weary of walking into just any "cash for gold" establishment. Information is power and a simple online search could be the difference between an honest, transparent transaction and an illegal scam.

If you'd like more information about this topic please visit: http://www.nygoldcashers.com/locations/new-york.html.

Contact: Scott Simon 
Tel. (516)-513-0830 
Cell Phone: (917)-596-8092
Email

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SOURCE The Gold Standard Jewelry and Gold Buyers